Households subject to the benefit cap will from April be battling the cost of living crisis £65 worse off than they would be if they were not capped, unless the cap is uprated, new analysis from Child Poverty Action Group (CPAG) finds.
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 cost of living crisis has pushed many families to the brink as a difficult winter looms. With around 2 million children living in households affected by deductions, the Work and Pensions Select Committee is right to say that now is time to pause these repayments.
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.
Forecasters have increased their estimate for the January 2023 energy price cap to £5,386 for the typical bill. If as expected, this estimate is accurate, families are now facing a gaping £1,200 shortfall for energy costs alone in the months up to April 2023.
Low-income families will have an estimated £1,000 shortfall for energy costs alone in the year to April 2023, if as expected Ofgem’s price cap rises to £3,554 in October, new analysis from Child Poverty Action Group (CPAG) shows. An announcement on the new cap is due tomorrow.
This paper is a revision of the analysis which was published by Child Poverty Action Group on 1 August. On 2 August new gas and electricity price cap estimates were published for October 2022 and January 2023 which slightly lowered the estimates for October and slightly increased them for January.
By January 2023 over half of households in the UK (15 million) will be in fuel poverty – spending over 10 per cent of net income on fuel. They will on average be spending £38.25 above the 10 per cent threshold. There are big regional variations in fuel poverty ranging from 47.5 per cent in London to 71.7 per cent in Northern Ireland.
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.