Link the Benefits Cap to Minimum Wage
Rather than a household cap, the cap on universal credits should be per individual and set at a percentage of the average minimum wage, say 75%.
For example - 40 hours per week x £6.31 x 52 weeks per year = £13,125. £13,125 x 75% = £9,850 per annum.
By making the cap for individuals rather than households this will reduce pressure on families to separate, or older children to move out, in order to get around the cap. This will therefore reduce pressure on housing.
Setting the cap at a percentage of the average minimum wage will mean that work always pays.
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