Pushed deeper into poverty: the impact of the benefit cap

Post date: 
22 March 2022

New statistics released today show that 123,000 households were subject to the benefit cap in November 2021.

The benefit cap limits the amount of social security received by some households, with families with children losing £235 a month, on average. In April, when inflation is expected to reach 8 per cent and most benefits will be increased by 3.1 per cent, capped households will see no increase in their benefits. If the government doesn’t act, 28,000 families with children in London will see the real value of their benefits fall by £1,840, and 77,000 families outside of London will see a real-terms fall of £1,600. This is between two and three times greater than the loss faced by families receiving universal credit who are not subject to the cap. 

The vast majority (85 per cent) of those affected by the benefit cap are families with children.

Removing the benefit cap would support families most in need.