A recent analysis reveals that families are facing severe financial strain, with some households left with only £3 per week due to the impact of the benefit cap implemented during the Tory era. According to the Child Poverty Action Group, this policy, described as one of the most severe remnants of the austerity period, is particularly harsh on single parents, leaving them with minimal funds after covering rent expenses.
The analysis highlights that in inner London, some single parents with three children are left with a mere £3 per week after paying private rents, while the amount rises to £82 in Guilford, £89 in Brighton, and £170 in Northampton. Consequently, many families are compelled to seek emergency assistance and rely on food banks to make ends meet, often falling behind on rent payments.
The Child Poverty Action Group is urging the government to abolish the benefit cap, which was put in place in 2013 and imposes a maximum limit on the amount of benefits a working-age household can receive. Currently set at £486 per week for couples and single parents in London and £423 outside the capital, the policy operates independently from the two-child benefit restriction.
Furthermore, the two-child benefit limit, which could potentially be eliminated by Keir Starmer as part of a child poverty strategy to be released soon, was introduced by former Chancellor George Osborne. This 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, has indicated her intent to lift the two-child benefit limit, emphasizing the government’s commitment to addressing child poverty. Chief executive of CPAG, Alison Garnham, condemned the benefit cap as a harsh consequence of austerity, emphasizing the urgent need to remove this policy to prevent more children from falling into deep poverty.
In response, a Government spokesperson emphasized the importance of providing every child with a strong foundation for their future, mentioning initiatives such as the Child Poverty Taskforce’s forthcoming strategy to tackle the root causes of child poverty. Additionally, investments in children’s development through programs like Best Start Family Hubs, free school meal extensions, and a crisis support package worth £1 billion are aimed at addressing child poverty and ensuring that vulnerable families receive necessary assistance.
