A recent analysis reveals that families are facing severe financial struggles, with some left with only £3 per week due to the impact of the benefit cap implemented during the Tory era. The Child Poverty Action Group describes this policy as one of the toughest legacies of austerity, particularly affecting single parents who are barely left with any money after paying rent.
In inner London, some lone parents with three children are reported to have a mere £3 per week remaining after covering their private rent costs. Contrasting figures show that the amount stands at £82 in Guilford, £89 in Brighton, and £170 in Northampton.
As a consequence of this situation, families are compelled to seek emergency assistance and rely on food banks to make ends meet, often falling behind on rent payments. The group is advocating for the government to abolish the benefit cap, which was enforced in 2013 and sets a maximum limit on the benefits that households of working age can receive.
The benefit cap currently stands at £486 per week for couples and single parents in London, and £423 outside the capital. It operates independently from the two-child benefit restriction, which could potentially be eliminated by Keir Starmer as part of a forthcoming child poverty strategy.
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 position, has signaled that the two-child benefit limit may be lifted soon.
Alison Garnham, the Chief Executive of CPAG, criticized the benefit cap as a severe outcome of austerity, punishing families for their essential expenses and leaving them with minimal resources to sustain themselves. She emphasized the urgency of removing this policy to prevent more children from falling into deep poverty.
In response, a Government spokesperson emphasized the importance of providing every child, regardless of their background, with a strong start in life. They mentioned the upcoming Child Poverty Taskforce’s strategy to address the underlying causes of child poverty and highlighted various investments aimed at supporting children’s development and ensuring families have access to essential resources.