Benefit cap: cost of living in a crisis

The benefit cap was introduced in 2013 and further lowered in 2016. It has never been uprated to reflect the rising cost of living.

The cap currently affects 120,000 households – 113,000 of which (94 per cent) are capped because of a failure to uprate with inflation.

If the benefit cap is not uprated when benefits increase in April 2023, it will mean that 120,000 of the poorest households (and 300,000 children) across the country will receive no help with their higher costs. Also, an estimated 35,000 additional households will be subject to the cap. 

The benefit cap pushes households into deep poverty – an average capped couple with 2 children is £150 a week below the poverty line.

Removing the cap would mean an additional £65 a week, on average, in the pockets of capped households, meaning an average capped couple with 2 children would be £85 below the poverty line.

The benefit cap would be cheap to remove – only costing £500 million, 0.2 per cent of total spending on social security.