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 Universal Credit (Removal of the Two Child Limit) Bill is a Private Members’ Bill brought forward by the Lord Bishop of Durham to remove the limit in universal credit (UC) that restricts support to just the first two children in a family. The second reading will take place on Friday 8 July.
At the start of the pandemic, the Department for Work and Pensions (DWP) relaxed some evidence checks for people making a universal credit (UC) claim to provide quicker access to benefits. In January 2021, the DWP began reverifying the details of claims made while evidence checks were eased. This has resulted in some claimants being asked to pay back the entirety of their UC award. More than a year after the exercise started, we continue to hear from people who have had their UC payments stopped, who have received demands to repay all the UC they received, and who are unable to understand or challenge the DWPs decision.
Now that DWP have published the draft amending regulations which will permit the wider rollout of universal credit (UC) i we have a good early understanding of the way in which people will experience managed migration. Furthermore, CPAG has some direct experience of the way in which people managed migrated to UC will be treated by DWP.
New data released today shows that 4.1 million households were claiming universal credit (UC) in February 2022. Benefits were recently increased by less than half the rate of inflation, meaning these families saw the real value of their UC fall by £660 a year on average. And while benefit levels sit at historic lows, an estimated 1.8 million households are receiving an average of £61 less each month than they are entitled to because of automatic deductions from their UC payment.
The Queen’s Speech was a missed opportunity for the government to introduce legislation that would support people in the short term and improve living standards in the longer term.
Secure Futures for Children and Families will ask the question: What does a social security system that provides a secure future for children and families look like? This launch paper sets out where the social security system is now and what needs to change.