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.
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.
The benefit cap was introduced in 2013, and limits the total amount of support some low-earning and non-working families can receive from the social security system. What has been the impact of this policy? What will a recently announced change to the cap mean for families? And does this change go far enough?
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 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.
Universal credit (UC) is now the main working-age benefit in the UK. Since its inception, UC has been plagued with administrative issues and budget cuts and, as a result, its early promise to reduce poverty has yet to be realised. When the pandemic hit, swift changes were needed to make UC fit for purpose including an increase in the amount of financial support provided and a relaxation of some of its most punitive rules. However, the vast majority of these positive changes have already been reversed, or are due to be reversed in the coming months.
This report draws on evidence from studies of minimum household costs in London to comment on the size of differences in children’s costs in various categories. This analysis builds on new research on a ‘Minimum Income Standard for London’.
The benefit cap has been in place since 2013, but what has its impact been when compared with its objectives? How does the rhetoric match up with the reality for the tens of thousands of families affected? And does the benefit cap have any place during a pandemic?
This report highlights that delays carrying out assessments for benefits mean that many disabled people are not receiving, or are losing support, intended to help them meet the additional costs of ill health or disability.
