In line with inflation, today benefits are being uprated by 6.7 per cent. For the first time in four years, the local housing allowance has gone up, improving housing support for many private renters. But one group will not see any improvement in support at all: around 77,000 families are affected by the ‘benefit cap'.
The Chancellor’s decisions to uprate benefits in line with inflation and to restore local housing allowance rates to the 30th percentile of rents were welcome, despite coming wrapped in punitive rhetoric, and accompanied by yet another ramping up of benefit sanctions. Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more.
The benefit cap and the two-child limit has caused hardship to tens of thousands of families, with both policies failing to meet their original aims, according to the findings of a new study.
The harms of the cost of living crisis are multiplied by the benefit cap and two-child limit, flagship policies of the welfare reform agenda which sharply sever the relationship between need and support provided by our social security system.
Ten years since the benefit cap was introduced across Britain, new research shows families affected by the policy have as little as £44 a week to live on after they’ve paid housing costs.
Our response to the Budget: Some of the Chancellor’s plans are welcome but some are worrying. Many of the childcare changes announced are a big step forward but the stringent job-search requirements for parents on universal credit (UC) are concerning and overall the package is far short of what struggling families needed from the Chancellor as they face another year of high inflation.
Just over a third (34%) of people on universal credit who are subject to the benefit cap – which the Government claims incentivises work – are assessed by the DWP as not required to look for a job because they are caring for very young children, new FOI data for Child Poverty Action Group (CPAG) shows. A further 18% are already in work but don’t earn enough to reach the threshold for the cap to be lifted.
Several government ministers have churned out a line about work being the best route out of poverty, but does it hold any truth? The evidence submitted to the All-Party Parliamentary Group (APPG) on Poverty for its report suggests that this is far from the case.
A family’s ability to get universal credit is often based not on their actual circumstances, but on a fictional version of their circumstances. Welfare rights worker Carri Swann explains.
New DWP figures out today show 107,000 families are facing escalating costs as winter bites with their benefits capped. 56,000 have kids aged under five. And more than 32,000 of these capped families (over 110,000 children) are also subject to the two-child limit policy.