A recent analysis reveals that families are facing financial struggles, with some left with only £3 per week due to the impact of the benefit cap introduced during the Tory era. The Child Poverty Action Group describes this policy as one of the most severe remnants of austerity, particularly affecting single parents who are left with minimal funds after paying rent.
According to the analysis, in inner London, some single parents with three children are left with just £3 per week after covering private rents, while the amount increases to £82 in Guilford, £89 in Brighton, and £170 in Northampton. As a result, many families are compelled to seek emergency support and turn to food banks to make ends meet, often falling behind on rent payments.
The group is urging the government to abolish the cap, which was implemented in 2013 and sets a maximum limit on the benefits that a working-age household can receive. Currently, the cap stands at £486 per week for couples and single parents in London, and £423 outside the capital. This policy operates independently from the two-child benefit restriction, which could potentially be eliminated as part of a child poverty strategy to be released soon, as hinted by Keir Starmer.
The benefit cap, introduced by former Chancellor George Osborne as part of austerity measures, restricts Child Tax Credits and Universal Credit to the first two children in a family. Education Secretary Bridget Phillipson, vying for Labour’s deputy leadership, indicated that there are plans to lift the two-child benefit limit to alleviate the burden on families.
Alison Garnham, the Chief Executive of CPAG, criticized the benefit cap as a harsh consequence of austerity, penalizing families for essential expenses and leaving them with insufficient resources to sustain themselves. She emphasized the necessity for the government’s child poverty strategy to eliminate this policy and the associated two-child limit to prevent more children from falling into severe poverty.
In response, a Government spokesperson emphasized the commitment to ensuring every child, regardless of background, receives adequate support, highlighting initiatives such as the Child Poverty Taskforce’s forthcoming strategy to address the root causes of child poverty. Additionally, investments in children’s development through programs like Best Start Family Hubs, free school meal extensions, and crisis support packages aim to alleviate financial hardships for vulnerable families.