39,000 households have gone into work and off the benefit cap

The number of households moving off the benefit cap and going into work has reached 39,000, up 5,000 on the last quarter, new figures show.

The benefit cap, introduced in 2013, incentivises work, including part-time work, as anyone eligible for Working Tax Credit is exempt.

It limits the amount that most people aged 16 to 64 can receive in benefits to £20,000 a year outside London, and £23,000 in Greater London.

Since the introduction of the cap, 160,000 households have had their benefits capped. Around 94,000 of these are no longer capped, with 39,000 households having moved into work.

David Gauke, Work and Pensions Secretary, said: “It is fair that people out of work face the same choices as those in work, and putting a cap on how much someone can receive in benefits restores that balance.

“Behind today’s figures are thousands of success stories as people start new jobs, and benefit from a regular wage for their families.

“They are part of the three million people who have moved into work since 2010 and show our commitment to supporting even more people across the country into employment and on the right path to improving their lives.”