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.
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.
Parents typically need to find at least £39 per week for a child’s secondary school education and £19 for a primary-aged child, research for Child Poverty Action Group (CPAG) finds.
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.
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.
A report commissioned by the Child Poverty Action Group (CPAG) in Scotland from the Centre for Research in Social Policy at Loughborough University has found a widening gap between the cost of raising a child in Scotland and actual family incomes, despite the significant impact of Scottish government policies and lower childcare costs.
It’s a relief that benefits and the benefit cap will rise with inflation. But this is only the fourth time benefits have risen by inflation in the last ten years and as a result of austerity - that today the chancellor praised - there are almost 4 million kids living in poverty in the UK. Today’s package will not stop the ice from cracking under struggling families.
Families in 2022 are facing the greatest threat to their living standards in living memory. Much has been written about these pressures, but to put them into context, we need to understand what has been happening to children’s and families’ costs in recent years. The Cost of a Child reports have been produced annually for a decade, and this 2022 edition presents the latest evidence of what families need as a minimum, and how this compares to the actual incomes of low-income families.