Benefit cap

The number of families affected by the government’s benefit cap stood at 187,000 in May 2021. These families are living on less than what they need because they are not in work or not considered to be working enough. On average, they are losing out on £238 per month.

Figures just released by the Department for Work and Pensions show that in February 2021, soon after the start of the third lockdown, 200,000 households were subject to the benefit cap. Behind this statistic are families having to get by on less than their assessed need because of the government’s decision to limit the amount of income any ‘non-working’ household can receive in social security. The pandemic has seen the number of capped households drastically increase, with the latest figures an increase of 153 per cent since February 2020, when 79,000 households were subject to the cap.

DWP figures out today show the number of households subject to the benefit cap has jumped by 13% since November to reach 200,000 at February 2021. The newly capped households are likely capped because they have lost jobs or working hours to Covid-19 and their wages have dropped below the earnings exemption threshold. But with the impact of the pandemic still being felt, few will be able to find replacement earnings to become ‘uncapped’. Average losses are £62 per week for capped families.

Since April we’ve been interviewing larger families who are subject to the two child limit and/or benefit cap as part of the Benefit Changes and Larger Families project. We’ll be interviewing many more families over the next 18 months, but already after 11 interviews it is striking how much common ground there is in larger families’ experiences of negotiating life on a low-income.

Since 2013, the benefit cap has meant that many families don’t have enough money to pay their rent. This isn’t a matter of opinion, it’s explicit in the way that benefits are calculated.

Official statistics released today show that the number of households subject to the benefit cap has increased again. 180,000 households were capped in November 2020, up from 170,000 in August 2020.

While some of us are counting down the days until the next stage of unlocking, eager to go out for a meal or go shopping, for many families living on a low income there is no end in sight. As one parent explained, the end of restrictions would mean going “from a viral lockdown to a financial lockdown”.