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.
Families have had months of dread watching prices soar while government has delayed and delayed any response, pushing many ever closer to the brink. The new prime minister has the opportunity to demonstrate that she stands with hard-pressed families and will act in the interests of the nation’s children, who have been invisible for far too long. Long term investment in a social security system that protects kids from poverty is an essential starting point.
The Front-loaded Child Benefit Bill is a Private Members’ Bill introduced by Lord Farmer (Conservative). It aims to allow recipients of child benefit to receive, if they wish, a higher rate of child benefit when a child is younger, in exchange for a lower rate when the child is older. This would be an alternative to the current system whereby a flat rate is paid throughout childhood. The second reading will take place on Friday 8 July.
Around 35,000 more families could have their benefits capped next April, leaving them with a growing gulf between their income and rising costs, new Child Poverty Action Group (CPAG) analysis shows.
New statistics released today show that 120,000 households were subject to the benefit cap in February 2022. The benefit cap limits the amount of social security some households receive, with families losing £236 a month, on average.
An estimated 1.8 million households on universal credit (UC) are having to live on significantly less than they are entitled to because the DWP is deducting debt repayments from their benefits at an unaffordable rate, according to new CPAG estimates. There are an estimated 2 million children in these households.
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.
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.