Government to cap benefits to families

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There is to be a cap on the overall amount of benefits a family can receive from the state.

The move is thought to result in unemployed families losing an average of £93 a week. Chancellor George Osborne announced the plan due to be implemented from 2013, in his keynote speech to the Conservative conference in Birmingham. The cap will be based on a median income after tax and national insurance, currently around £500 per week. The Treasury claims the cap will apply to about 50,000 workless families, who will lose an average of £93 a week. Osborne said: "Unless they have disabilities to cope with, no family should get more from living on benefits than the average family...

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