Asked by
To ask Her Majesty’s Government when they propose to conduct the
next statutory review of the benefit cap.
The Parliamentary Under-Secretary of State, Foreign, Commonwealth
and Development Office and Department for Work and Pensions
() (Con)
There is a statutory duty to review the benefit cap levels once
in each Parliament, unless an early election is called. As such,
the review will happen at the appropriate time, yet to be
determined by the Secretary of State, which must currently be by
December 2024.
(Lab)
My Lords, it is exactly five years since the cap on how much
benefit can be received was reduced to its current level. Given
that the numbers affected remain well above pandemic levels, and
the mounting evidence of the cap’s contribution to deep child
poverty, food insecurity, homelessness, mental health problems
and difficulties faced by domestic abuse survivors, will the
Government undertake now to do the review required by law—as the
Minister said—and address in it the evidence of hardship and the
growing calls for the cap to be abolished, including from the
noble Lord, , yesterday in this House, who
called it an “excrescence”?
(Con)
I am afraid I cannot commit to the Secretary of State reviewing
the benefit cap now. I note the points the noble Baroness has
made and continues to make, but for the Government the benefit
cap provides a strong work incentive, and we think the national
cap of earnings at £24,000 and £28,000 in London is a fair system
at the moment. However, I will take her points back to the
department.
(Con)
My Lords, the Government state that, where possible, it is in the
best interests of children to be in a working household. What
support is available for those impacted by the cap, in particular
for people who want to become less reliant on benefits in their
search for work? What support can be given to help with home
rental costs?
(Con)
I know there is much angst about the benefit cap, but let me tell
noble Lords what we are doing to support people impacted. We have
a range of employment support available with work coaches. The
real desire is for people to be less reliant on benefits. Our
work coaches have the flexible support fund, which is doing a lot
of good to overcome the barriers that stop people going to work.
Claimants can recover up to 85% of their eligible childcare
costs. Local authorities provide budgeting advice and, in terms
of rental cost support, the local housing allowance —where we
have maintained the amount.
(Lab)
My Lords, the number of households that have had their income
limited by the benefit cap soared more than 137% during the
pandemic. Those are the Government’s figures. Those numbers are
still going up. Almost all the capped households include
children: 400,000 of them are in families in which both parents
are in work. The Government’s policy is dragging families deeper
and deeper into poverty. Will the Minister tell the House what
assessment the Government have made of the cap’s impact on
driving children into deep poverty?
(Con)
We understand there are around 190,000 households in both
universal credit and housing benefit that were capped in May
2021—about 2.8%. There are some exemptions to the cap, as the
noble Baroness well knows, and some grace periods. I will need to
go back to the department to ask the question about the impact. I
cannot answer it now, and rather than give a wrong answer, let me
write to the noble Baroness.
(LD)
My Lords, evidence to the House of Lords Economic Affairs
Committee states that the benefit cap is putting abused women
“in situations where they may have no choice but to return to the
abuser or take out payday loans.”
Is it not time that the Government took action to address the
injustices of the benefit cap and its effect on hardship and
poverty?
(Con)
As I said, the benefit cap will be reviewed at a time to be
determined by the Secretary of State, but we have a range of
measures designed to support people who flee abusive and violent
households, as it is quite unacceptable that they should have to
do this. We have provisions in housing benefit and universal
credit, and I can assure the House that, where necessary, we
arrange split payments for people in order for them to be able to
maintain an independent life.
(Lab)
My Lords, in his recent book, the noble Lord, , said:
“The benefit cap made little sense in a system designed to
provide each family what it needed.”
Quite, so why do it? Yesterday, the noble Lord, , told the House why. He said
that George Osborne’s chief of staff had said to him:
“I knew it didn’t make much in the way of savings, but when we
tested the policy, it polled off the charts.”—[Official Report,
2/11/2021; col. 1128.]
The cap has caused huge hardship and driven kids into poverty,
but it was not because it was right, but because it polled off
the charts, helped by rhetoric demonising the poor and those who
could not work. Labour would scrap it to lift people out of
poverty; will the Government now do the right thing?
(Con)
I am well aware of the observations passed by my noble friend
. As I have said, the benefit cap
will be reviewed by the Secretary of State. I am very sorry, but
I am not able to give a commitment to scrap it.
(Con)
My Lords, will the Minister tell us what proportion of those
subject to the benefit cap are realistically incapable of moving
into work? Perhaps they are sole carers of very young or disabled
children, or dependent adults, or they might be recovering from
addictions. With such cases in mind, will the Minister update us
on progress in developing universal support?
(Con)
My Lords, I will deal with the latter point first. The Government
are fundamentally against universal support or universal basic
income: it is the wrong approach for the people of the UK. It
would mean that there was no incentive to work; it would not
target those in greatest need, and it would fail to take into
account the significant additional costs faced by many
individuals. As for the people mentioned by my noble friend, it
would be easy to write them off, but our absolute commitment is
to say that the best route out of poverty—the best route for
these people—is, where they can, to get work.
I was passed today just one story about a single father from
Scotland who lives remotely, 25 miles from his nearest Jobcentre
Plus, for whom finding work was almost impossible. However, his
work coach found him a Kickstart job: they absolutely threw the
kitchen sink at the flexible support fund and got him advance
costs to enable him to travel. He is now working on the Kickstart
scheme, which is proving to be very good for him.
of Newnham (LD)
My Lords, the Minister rightly says that getting people into work
is the best way out of poverty, but the noble Lord, , asked about those who cannot
work. Will the Government undertake to look into the statistics
for those people who cannot work and look again at the benefit
cap for them? I also note that December 2024, by which time the
Minister says there has to be a review, may well be after the
next general election, which may mean that the Secretary of State
will never bother engaging in a statutory review.
(Con)
The Secretary of State is required by law to do a review, so I do
not see how she is going to get out of it—but perhaps the noble
Baroness knows more than me. I know that the Secretary of State
is a robust lady and is on the money, and she cares more about
unemployed people than some people give her credit for—so let me
just park that with you. It is important to know. I am exhausted
now.
I have already agreed to go back to the department on the point
that the noble Baroness, Lady Lister, made about impact and so
on, and I will do so. I thank the noble Baroness for the
reminder.
(Con)
My Lords, given that some families have particular difficulties,
are there any circumstances in which the benefit cap does not
operate?
(Con)
I can tell my noble friend that when people have caring
responsibilities, or someone has a severe disability or health
condition, they will not have their benefits capped. Universal
credit households are exempt from the cap if household earnings
are at least £617 a month, and housing benefit claimants entitled
to working tax credits are also exempt from the benefit cap.
(Lab)
Will the Minister understand the concern—indeed, revulsion—across
many sections of this House at this punitive policy? The Minister
refers to people finding work where they can. The truth is that
large numbers hit by the cap cannot obtain work. Will the
Minister understand that this policy recreates less eligibility
and the worst aspects of the Poor Law?
(Con)
As I have said to the noble Baronesses, Lady Lister and Lady
Smith of Newnham, and as I shall say to the noble Lord, , I have agreed to
go back and come back to noble Lords on this issue. The question
is virtually the same, and I shall give an answer.
