Majority support scrapping cruel benefit cap but only a quarter want cap on bankers bonuses gone

The number of capped families increased from 103,000 in February to 110,000 in May 2022.

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Child Poverty Action Group (CPAG) polls reveals that the majority of people (52%) favour removing the benefit cap, whereas just slightly more than a quarter (27%) favour removing the restriction on banker bonuses.

Only 34% of those who voted Conservative in 2019 want the benefit cap to remain in place, compared to 50% who want it scrapped.

110,000 households are subject to the benefit limit and will get no benefit increase in April, resulting in a widening gap between their income and rising expenses.

With inflation at historic highs, the Child Poverty Action Group (CPAG) warns that if the cap is not lifted, the real-terms income reduction these families would experience will be untenable.

The number of capped families increased from 103,000 in February to 110,000 in May, according to data released today.

Over half (52%) of capped households have children under the age of five, and 23% have children under the age of two.

Benefits for non-working or low-income households are capped at £383 per week for households outside London and £442 per week for households in London.

The limit has been unchanged since 2016. Almost all (94 per cent) households affected by it are only capped because of the failure to uprate the cap with inflation.

28,000 London families are capped; 82,000 families outside London are capped
There are 330,000 children in these families

69% of all capped households (87000) are single-parent families, 18% (23,000) are couple-parent families.

It is estimated that the average monthly amount of Universal Credit lost due to the cap is £246 for households which contain children.

But some lose out on far more – 26% of capped households with children lose out on over £325 a month. Six per cent lose out on £650 a month.

The majority of these households are living in poverty. If the cap is not abolished or increased in April 2023, CPAG warns tht the average couple with two children would be £150 per week below the poverty level in 2023-2024.

Chief Executive of Child Poverty Action Group Alison Garnham said: “The benefit cap is leaving the poorest families with less and less while bankers look to be in line for more and more.

“Capped families face a terrifying chasm between their income and rising costs, forced to live with a permanently empty wallet.

“With 330,000 children paying the price, it’s no surprise our polling shows the majority of people think the cap should be scrapped.

“If the new prime minister wants to show she backs struggling families, now is the time for her to abandon this inhumane policy for good.”

It was determined that lifting the benefit cap would raise the average weekly income of impacted households by £65.

SourceCPAG
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