Tories' 'flawed' benefit cap leaving some families with £44-per-week to live on

13 July 2023 , 23:01

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The benefit cap is having a devastating toll on families, new research finds (Image: Getty Images/iStockphoto)

The Tories' "flawed" benefit cap is leaving some of the poorest families with as little as £44-per-week to live on, a new analysis warns.

It comes 10 years after the controversial policy, which restricts the total amount of support a working-age household can receive, was first introduced as part of an austerity drive.

The Child Poverty Action Group warns that 250,000 children currently live in households impacted by the cap, which is driving many into "deep poverty".

For households with children the benefit cap - frozen between 2016 and 2023 - is currently set at £486.98 per week in London and £423.46 outside the capital.

But the CPAG said that in some areas of London - despite the cap being higher in the capital - a lone parent with three children has to cover all non-housing costs on just £44-per-week.

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They said, however, "it is not just a London issue" with families in Guildford left with £106-per-week and Brighton and Hove on £147.

The report adds: "The rationale for the benefit cap is flawed. The Government's own analysis shows it does not work as a work incentive. Instead, it just takes income away from some of the poorest households across the country and drives children and families into deep poverty."

The organisation, which is calling for the benefit cap to be scrapped, said it would cost the Government around £300million - or 0.1% of the total spent on social security.

Chief Executive Alison Garnham said: "There is no rhyme or reason to the benefit cap and it is deeply harmful to children. All political leaders must commit to scrapping it before it pulls more children into its net."

She added: "The government is at its most illogical with its benefit cap - the Department for Work and Pensions assesses families' needs, determines their entitlement, then slaps a flat-rate cap on that entitlement, denying families what the department itself says they need".

The latest Government figures, published in June, showed that some 97,000 households across much of the UK that had their benefits capped included children.

The total number of capped households increased by 3% in the latest quarter, according to the Department for Work and Pensions statistics.

A Government spokesperson said: “We are committed to protecting the most vulnerable which is why we’ve increased the benefits cap in line with inflation and are providing record financial support worth around £3,300 per household.

“Our actions have helped nearly two million people, including 400,000 children, out of absolute poverty after housing costs since 2010, while the benefit cap provides both a strong work incentive and a vital safety net for those who need it.”

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