What is the evidence on the impact of the benefit cap on children and families in poverty? In particular, how do high housing costs affect experiences of the cap and people's ability to escape it? And why is it so important that the government scraps the policy?
This briefing shows how the benefit cap is contributing to homelessness, as families are trapped in refuges and other forms of temporary accommodation and are unable to move on to secure and affordable homes.
In line with inflation, today benefits are being uprated by 6.7 per cent. For the first time in four years, the local housing allowance has gone up, improving housing support for many private renters. But one group will not see any improvement in support at all: around 77,000 families are affected by the ‘benefit cap'.
Our pre-Budget briefing details how best to invest financial support in children to reduce child poverty and give every child the chance to fulfil their potential.
The Chancellor’s decisions to uprate benefits in line with inflation and to restore local housing allowance rates to the 30th percentile of rents were welcome, despite coming wrapped in punitive rhetoric, and accompanied by yet another ramping up of benefit sanctions. Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more.
It’s right that benefits are uprated as usual but this should never have been in doubt and legislation mandating inflationary increases is needed as a basic protection for living standards. Struggling families have been worrying themselves sick for months about whether an unmanageable income cut was coming in order to provide the government with a rabbit-out-of-the-hat moment.
