A recent analysis reveals that families are facing severe financial strain, with some having as little as £3 per week to cover expenses 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 enduring harsh effects of the austerity period, particularly affecting single parents who are left with minimal funds after paying rent.
The analysis highlights that in inner London, some single parents with three children are left with only £3 per week after meeting their private rental obligations. Contrasting figures show that in Guilford, the amount is £82, in Brighton it is £89, and in Northampton, it rises to £170.
As a consequence, many families are forced to turn to emergency support and food banks for survival, often falling behind on rent payments. The group is urging the government to eliminate the cap, which was implemented in 2013 and imposes a ceiling on the benefits a working-age household can receive.
The current benefit cap is set at £486 per week for couples and single parents in London, and £423 outside the capital. This cap operates separately from the two-child benefit limit, which could potentially be removed as part of a child poverty strategy to be released soon.
Introduced by former Chancellor George Osborne, the policy restricts Child Tax Credits and Universal Credit to the first two children in a family. Education Secretary Bridget Phillipson, a candidate for Labour’s deputy leader, has indicated that there are intentions to lift the two-child benefit limit, emphasizing the government’s commitment to addressing child poverty.
Alison Garnham, the Chief Executive of CPAG, criticized the benefit cap as a punitive measure that leaves families struggling to cover essential costs. She emphasized the necessity of removing both the benefit cap and the two-child limit to prevent more children from experiencing deep poverty.
In response, a Government spokesperson highlighted the commitment to providing every child with a strong start in life. The Child Poverty Taskforce is set to release a comprehensive strategy to address the underlying causes of child poverty, including significant investments in children’s development through initiatives like Best Start Family Hubs, free school meals expansion, and a crisis support package to prevent hunger during school holidays.