The #BenefitCap was first announced #OnThisDay in 2010 by George Osborne at the Conservative party conf. It came in in 2013. It breaks the vital link between the support you need & the support you get from our social security system & pushes kids into poverty [thread] 1/17
Originally the #BenefitCap was based on the premise that non-working households shouldn’t receive more than the average earnings of working households. But this compares incomes with earnings. A working family on £26k could also receive a range of benefits and tax credits. 2/17
The #BenefitCap was then lowered in 2016 and is set at a completely arbitrary level. And this was just as the cost of living was starting to rise. 3/17
One of the stated aims of the #BenefitCap is to incentivise people to move into work. But very many people affected by the cap are not expected to work because of disability or ill-health, or because they have very young children. 4/17
Leading judges have said that the #BenefitCap breaches the UN Convention on the Rights of the Child, and that "it cannot possibly be in the best interests of the children affected by the cap... 5/17
"...to deprive them of the means to provide them with adequate food, clothing, warmth and housing, the basic necessities of life." 6/17
Our research (pre-COVID) showed that most children in families affected by the #BenefitCap were living so far below the poverty line that even lifting the cap would not be sufficient for them to escape poverty. It pushes kids already living in poverty into deeper poverty. 7/17
There is now government data that shows that 154,000 households had their benefits capped in May 2020, which is twice as many as in February 2020. The average amount that households are capped rose from £51 a week in February 2020 to £57 a week in May. 8/17
The welcome increase to #UniversalCredit in March means families previously close to the level of being capped are now capped. These families miss out on this extra, much-needed support, even though they face the same financial pressures as other people on UC. 10/17
Families who were previously claiming benefits but were working a sufficient number of hours to escape the #BenefitCap may find themselves newly capped if they have lost a job or their hours have dropped in the pandemic. 11/17
Some of these workers will be protected by a ‘grace period’ for nine months if they are newly unemployed, but this relies on a consistent work history over the past year. Some families claiming benefits for the first time will have been hit by the cap too. 12/17
We have heard from frontline advisers about some families affected by the #BenefitCap: a single mum with twins was working over 16 hours per week when her twins went to school, but now furloughed with lower earnings they are affected by the cap. cpag.org.uk/sites/default/… 13/17
One mother left her husband as he was abusive. She has been furloughed from her job and her earnings are now below the threshold to exempt her from the #BenefitCap. She is now in severe financial distress due to the cap cpag.org.uk/sites/default/… 14/17
We spoke to mum Anna: “I’m worried sick about money... I can’t get off the #BenefitCap, because I can’t find a job, I can’t work with the children at the moment, and I can’t move into cheaper accommodation because there isn’t any available.” cpag.org.uk/news-blogs/new… 15/17
Some stories from our latest report, out today, with @churchofengland. Some may sound familiar:
“I lost my job beginning of March and been unable to find a new job as my son’s nursery closed... I am in more debt and struggling to pay bills and feed my son and myself.”
A Dad, Graham, described not being able to cheer his daughter up by giving her money:
“I’ll break down and cry some days, I’ll go to my bedroom and cry, because I can’t give her £20 to go and buy something.”
“They can see there is no money... especially also for the 19-year-old, I don’t want her to know everything that’s happening because she gets very bad panic attacks and anxiety. I try to hide as much as I can from them, but yes, they know.”
We've been monitoring the social security system during #COVID19 through our Early Warning System - here are some of the issues we're seeing again and again 1/11
1. Universal credit – the main benefit available to low-income families – is not available to everyone, even though working is now much more difficult for many. 2/11
2. There has been no financial support for children (other than free school meal vouchers for a minority). 3/11
#NationalFoodStrategy We welcome the call for an extension of entitlement to free school meals. Our CEO @alisongcpag: “Extending free school meals to kids whose parents receive universal credit would be a good step forward in protecting most disadvantaged... 1/n
"...but the evidence shows that free school meals for all kids would achieve so much more. When lunch is free for all, children’s school results are boosted, their diet improves and parents struggling to make ends meet have more to spend on nutritious breakfasts & dinners... 2/n
"The support for @MarcusRashford's recent intervention showed there’s a feeling across the UK that we’ve become too mean about providing for children in school. We don’t means-test any other part of the school day so why do we food – so critical for children’s development? 3/4
Benefit-capped working mother wins test case against DWP's irrational universal credit rules for assessing earnings - Out statement on today's judgment: cpag.org.uk/news-blogs/new…
"Our client is a working single mother who has done everything she can to support her children but has been trapped by the absurd rigidity of universal credit rules which have penalised her for being paid 4-weekly rather than monthly –a circumstance that was beyond her control...
"Far from making work pay, UC left our client humiliated & in financial misery – resorting to food banks to feed her kids... benefit-capped –even though somebody doing exactly the same work, same No of hours at the same pay would be exempt because their employer pays monthly...
Our response to the #SummerStatement: "The Chancellor’s focus on protecting jobs and supporting people into work is welcome and desperately needed in response to higher unemployment. Extra money for the flexible support fund is great news especially if it can be used...
"...more flexibly for up-front childcare costs, quality training and additional costs needed for job search, work clothing and fares. The existence of this support through the flexible support fund needs to be better publicised so claimants know there is help they can ask for...
"...But in addition the Chancellor needs to recognise that most children in poverty have a working parent so a job itself is not a guaranteed route out of poverty. Extra support with finding a job is welcome, but without more investment in universal credit to make work pay...