Benefits cap begins

A cap on the total amount of benefits that people aged 16 to 64 can receive has begun.

Couples and lone parents will now not receive more than £500 a week, while a £350 limit applies to single people.

The benefits cap applies to people receiving jobseeker's allowance, child benefit, child tax credits, housing benefits and other key support from the government.

There is no cap on people who receive Disability Living Allowance or its successor, the Personal Independence Payment, as well some other benefits, such as industrial injuries benefit or a war widow or widower's pension.

The benefit cap will be introduced in Rochdale from the end of September.

"The benefit cap returns fairness to the benefits systems," Work and Pensions Secretary Iain Duncan Smith said. "It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work.

"The limit of £500 a week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job - as those eligible for Working Tax Credit are exempt."

His department says about £90bn was paid out in benefit payments to people of working age and their families in 2009-10.

It hopes the cap will save about £110m a year.