Benefit cap has 'couple penalty'

Press Association
Lain Duncan Smith
Lain Duncan Smith

The Government's benefit cap may create a "couple penalty" in the welfare system, encouraging spouses and partners to live apart, a leading economic think-tank has warned.

The controversial £26,000 limit on the total amount of benefits claimed by any household was described as "incoherent" by the Institute for Fiscal Studies (IFS) in an analysis which warned of undesirable consequences.