Press release: Benefit cap restores fairness to the system

New analysis has revealed how the cap restored fairness to the system – before they were capped, nearly 180 households were getting the equivalent of a pre-tax salary of at least £57,000 in benefits.

Since its introduction in 2013, 26,000 households who were previously capped have moved into work, with a further 14,000 reducing their housing benefit claim, or ending their claim altogether. Anyone eligible for Working Tax Credits is exempt from the cap, providing a clear incentive to move into work.

The new benefit cap, limiting the total amount workless households can receive in benefits to £20,000 across the UK or £23,000 within Greater London, is now in place across the country following its successful rollout.

Work and Pensions Secretary Damian Green said:

Since the benefit cap was introduced in 2013, people in tens of thousands of households have moved into work. The new lower cap continues to build on that success by incentivising work.

There are over three quarters of a million job vacancies across the country, and we are determined to do everything we can to help people into work.

We are creating a country which works for everyone, and the lower cap ensures the system remains fair to both the taxpayers who pay for it and to those people who need it.

Anyone eligible for Working Tax Credits is exempt from the cap, providing a clear incentive to move into work. People claiming Carer’s Allowance, Guardian’s Allowance, and most disability benefits are also exempt from the cap, ensuring those who cannot work are supported.

The Department for Work and Pensions is also working closely with local authorities, and will have provided them with over £1 billion of Discretionary Housing Payments by the end of this Parliament to support people transitioning to our reforms, as the new cap is introduced.

The new benefit cap is set at £20,000 a year outside London and £23,000 in Greater London to reflect higher rent costs. For single people without children, the cap is £15,410 in Greater London and £13,400 elsewhere.

Anyone working and receiving Working Tax Credits is exempt from the cap, as are households where someone receives Disability Living Allowance (DLA), Personal Independence Payment (PIP), or the support component of Employment and Support Allowance (ESA).

Those claiming Carer’s Allowance or Guardian’s Allowance are exempt from the new cap, in recognition of the valuable contribution they make to society.

Statistics on the new lower benefit cap will be released in May 2017.

Media enquiries for this press release – 020 3267 5111

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News story: CMA welcomes new Project Director

The Competition and Markets Authority (CMA) has today announced the appointment of Alison Gold as a Project Director.

Alison joins from the BBC, where she was Head of Strategy at the BBC Trust.

Daniel Gordon, CMA Senior Director, Markets, said:

I am delighted to welcome Alison to the CMA. She impressed us deeply with her leadership abilities and experience of public policy gained at the BBC Trust, and I am very confident that she will be a very strong addition to the CMA’s senior leadership team.

Alison is the fourth and final recruit to join us following the last successful campaign, which attracted a very competitive field. Fred Houwen, Tim Geer and Lucilia Falsarella-Pereira have each already started in their new posts.

Notes for editors

  1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA updates, follow us on Twitter @CMAgovuk, Flickr, LinkedIn and like our Facebook page.
  2. Alison Gold joins from the BBC where she was Head of Strategy at the BBC Trust, running a core part of the BBC’s governance and regulatory system and acting as a senior adviser to the Chairman and Board of the BBC. She was previously a strategy management consultant at KPMG and at a media sector specialist advisory firm.
  3. Media enquiries should be directed to Simon Belgard (simon.belgard@cma.gsi.gov.uk, 020 3738 6472).



Press release: Huge response to dangerous driving proposals

Thousands of people have had their say on plans to introduce life sentences for killer drivers.

The consultation, which opened on 5 December 2016, attracted over 1,000 replies in just 3 days, reaching more than 9,000 when it closed yesterday (1 February 2017).

The overwhelming response is one of the highest for a Ministry of Justice (MOJ) consultation, and included contributions from victims, bereaved families, road safety groups and charities.

Justice Minister Sam Gyimah said:

Killer drivers ruin lives. While we can never compensate for the loss of a loved one, we are clear that the punishment must fit the crime.

So I would like to thank the thousands who have contributed to this consultation. We will now carefully consider each of these and will set out our plans as soon as possible.

The consultation sought views on whether the current maximum penalties available to the courts should be increased.

The proposals included:

  • increasing the maximum sentence for causing death by dangerous driving from 14 years to life
  • increasing the maximum sentence for causing death by careless driving whilst under the influence of drink or drugs from 14 years to life
  • creating a new offence of causing serious injury by careless driving, with a maximum sentence of 3 years
  • increasing minimum driving bans for those convicted of causing death.

The plans build on the government’s pledge to consider sentencing powers available to the courts for the most serious driving offences. The government will consider the responses and set out its plans in the coming months.

Notes to editors

  • The UK has one of the best road safety records in the world – but deaths and serious injuries cause devastation to victims and their families.
  • The consultation looked at the most serious road offences. It did not cover other driving or regulatory offences such as speeding, the setting of drink drive limits, the basic offences of careless or dangerous driving and driving whilst using a mobile phone.
  • This follows further action in 2015, when the government increased the maximum custodial sentence for causing death whilst driving when disqualified from 2 to 10 years. A new offence of causing serious injury when driving whilst disqualified was also created, with a maximum penalty of 4 years imprisonment. It also brought into force the statutory requirement to extend a driving ban to take account of any time spent in custody.
  • Sentencing remains a matter for independent judges, with decisions made based on the full facts of the case.
  • For more information call the MOJ press office on 020 3334 3503 or 020 3334 3529.



News story: UK invests in new submarine training school on the Clyde

HM Treasury this week approved the Initial Gate Business Case for the new submarine school to be built at Scotland’s largest military establishment this week. Final design approval is expected soon, which will allow work to begin later this year.

Defence Secretary Sir Michael Fallon said:

We are now making a long-term investment of hundreds of millions of pounds to improve and upgrade the waterfront at Clyde to make sure it is ready to support the United Kingdom’s whole submarine fleet.

As well as a boost to the Scottish economy, this will also bring welcome stability for our personnel, who work hard to help keep Britain safe and secure.

The new schools will provide academic and technical training for all Royal Naval personnel entering the submarine service from 2022. It is an important step for both the Royal Navy and Scotland as it means all submariners’ careers, whether afloat or ashore, will be principally conducted from Faslane as part of a £1.3 billion investment in making the Clyde Britain’s submarine hub.

All 11 Royal Navy submarines will be based at HMNB Clyde from 2020, seeing the number of people employed at the base will rise from 6,800 people to 8,200. The school will support the Astute hunter killer submarines, as well as the delivery of training for the new Dreadnought nuclear deterrent boats, which provide the United Kingdom with its continuous nuclear deterrent.

Head of the Submarine Service, Rear Admiral John Weale said:

Our new single integrated operating base will make significant improvements to the work-life balance of our 5,000 submariners.

By putting our boats and training in one place, our submariners can put down roots in Scotland knowing that they are no longer required to commute from one end of the country to another.

The re-location of submarine training from HMS Sultan and HMS Raleigh is consistent with the Better Defence Estate Strategy, published in November, which set out the department’s plans sets out plans to achieve a more efficient, modern and capability focused defence estate and bring greater harmony to Service families.

Key milestones in the development of a Submarine Centre of specialisation at HM Naval Base Clyde include:

  • A drumbeat of arrivals of the last four Astute class submarines on the Clyde due to be commissioned into the Royal Navy between 2018 and 2024 (eventually replacing the Trafalgar class).

  • The move of the last two Trafalgar class submarines, HM Submarines Talent and Triumph, to the Clyde in 2019 and 2020 from Devonport (Plymouth). On current plans, the end of service date for Talent is 2021 and for Triumph is 2022.

  • The move of the Submarine Escape Rescue Abandonment and Survivability Training capability from Hampshire to the Clyde by 2019.

  • A new Nuclear Support Hub, providing modern standard effluent disposal by 2020 which will remain compliant with Scottish and UK environmental standards.

  • The Faslane Nuclear Infrastructure Continuous Availability Programme to replace or refurbish Nuclear Facilities by 2024.

  • The four Dreadnought nuclear deterrent submarines will start to arrive at Faslane from the early 2030s (replacing the Vanguard-class boats).




News story: Government property reductions deliver billions to public purse

The government reduced its estate by over 300,000 square metres – the equivalent of seven Wembley stadiums – and delivered running cost savings of £176 million in the last financial year, according to the latest State of the Estate report from the Cabinet Office.

Speaking today at the 2017 Government Property Conference, Minister for the Constitution Chris Skidmore announced that since 2010, rationalisation of the estate has reduced its size by a quarter, delivering over £1 billion in running costs.

The sale of surplus properties, including Admiralty Arch and the Old War Office, resulted in a further £1 billion in capital receipts in 2015-16 – a notable step towards the pledge to deliver £5 billion in receipts by 2020.

The report shows that vacant space within the central government estate now only represents 1.4% – well below the average in the private sector of 8.9%.

The Minister outlined how the Government Property Unit’s pioneering Government Hubs and One Public Estate programmes are revolutionising the way government uses its property to deliver savings to the taxpayer, homes and jobs, whilst revolutionising the way the Civil Service works.

He highlighted the progress made in setting up a new central body that will take ownership of all relevant government land and property. The body, which will be called the Government Property Agency, has an executive team in place and is expected to go live by the end of 2017.

Chris Skidmore, Minister for the Constitution, said:

The progress that we have made over the past year in rationalising the government estate is something that I am very proud of. Not only are the sales and savings that we have made substantial, but the way in which we are managing our buildings will bring about positive, and lasting change.

Whether releasing land for housing, or revolutionising the way in which civil servants work, we can be confident that we are using the government estate in the most productive way possible.