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, according to a recent analysis by the Child Poverty Action Group. The group describes the policy as one of the enduring consequences of austerity, particularly affecting single parents who are barely left with any money after paying their rent.
The analysis reveals that in inner London, some lone parents with three children are left with a mere £3 per week post-rent payments. In other areas, the situation is slightly better but still challenging, with figures such as £82 in Guilford, £89 in Brighton, and £170 in Northampton.
As a result of this financial strain, families are turning to emergency support and food banks to make ends meet, often falling behind on rent payments. The Child Poverty Action Group is urging the government to eliminate the benefit cap, which was put in place in 2013 and imposes a maximum limit on the benefits households of working age can receive.
The current benefit cap stands at £486 per week for couples and single parents in London, and £423 outside the capital. It is distinct from the two-child benefit limit, a policy that Labour leader Keir Starmer may seek to abolish as part of a forthcoming child poverty strategy.
Introduced by former Chancellor George Osborne, the benefit cap restricts Child Tax Credits and Universal Credit to the first two children in a family. Education Secretary Bridget Phillipson, a Labour deputy leader candidate, has hinted at the policy’s potential removal, emphasizing the government’s commitment to addressing child poverty.
Alison Garnham, the Chief Executive of CPAG, criticizes the benefit cap as a severe legacy of austerity that leaves families struggling to cover essential expenses. She emphasizes the urgency of revising the policy to prevent more children from falling into deep poverty.
In response, a Government spokesperson highlighted the commitment to supporting children’s well-being through initiatives like the Child Poverty Taskforce and investing in programs such as Best Start Family Hubs and free school meals to address the root causes of child poverty.