599:(DWP) indicated that by 2018, 70% of the households that had been subject to the cap were no longer subject to it, amounting to 54,000 households. In that year independent research was published examining 10,000 benefit-capped households. It estimated that the policy had increased the likelihood of moving into work by 21%. However, only 37% of those no longer subject to the cap had become so due to a higher income. For every child affected by the cap whose parents had moved back into work, eight others were living in worse financial circumstances. Over half of those households subject to the cap remained so for six months or more, and two-thirds of those experienced a shortfall between their monthly income and estimated costs. Overall the average gap between rent and housing benefit for families affected by the cap was £3,750 a year. A study of
34:
120:, The Benefit Cap (Housing Benefit) Regulations 2012 and The Universal Credit Regulations 2013. It began roll out in April 2013 and was fully implemented by September 2013. By 2014 a total of 36,471 households were having their payments reduced by the benefit cap, of which 17,102 were in London. When it was introduced in 2013 it was set at a level of £26,000 per year (£500 per week) which was the average family income in the UK. For single people with no children it was set at £18,200 per year (£350 per week).
566:’s promise of a “society fairer for families” harder to achieve. Terrie Alafat of the CIH feared that many families could face poverty following a redundancy or ill health. She said: “This could have a severe impact on these families, make housing in large sections of the country unaffordable and risk worsening what is already a growing homelessness problem”. Imran Hussain of the
127:. From Autumn 2016 it was reduced to £20,000 (£13,400 for single adults without children), except in London where it was reduced to £23,000 (£15,410 for single adults without children). This change increased the number of households capped to 60,000. As the level of the cap did not increase over time the number of households affected by it rose, reaching 112,000 in 2022.
709:
The
Supreme Court rejected a subsequent legal challenge made by lone parents who argued that the benefit cap discriminated generally against women, who make up most of the population of single parents, and specifically against lone parents with young children. The court held by a majority of 5–2 that
573:
When the benefit cap was introduced in 2013 the
Coalition Government predicted that it would reduce public expenditure by £225 million by April 2015. Half of those affected by the benefit cap between 2013 and 2016 lived in London where rents are 61% higher than the national average. Research by the
635:
found that the benefit cap typically traps people in poor quality privately rented housing, increasing their levels of poverty, and that it fails to persuade them to gain employment or move to cheaper housing as they usually already live in the cheapest homes in the local area. In consequence, the
656:
The first attempt at a test case of the benefit cap was made in 2013 during the policy's pilot in four London boroughs. Permission was given for a judicial review of the policy on behalf of a number of families, two of the claims involving victims of domestic abuse. Papers submitted to the court
611:
Analysis of DWP figures published in
November 2018 carried out by the Labour Party indicated that single women with one or more dependent children made up over 85% of the householders who had their benefits capped (114,337 of the total 134,044). Overall 120,297 single claimant women had their
76:
and reforms of housing benefit and disability benefits. The government cited wide public support for the measure, despite it being highly controversial. The benefit cap primarily affects families with children, high rents, or both. By 2024, two-thirds of the families affected by the cap were
670:, concerning an argument made on behalf of the two lone mothers that the benefit cap was discriminatory and unfair. The court ruled by a 3–2 majority verdict that the benefit cap was lawful but three of the five judges concluded that the benefit cap breached the United Nations
591:
said that benefit cuts and sanctions were "having a toxic impact on mental health". Rates of severe anxiety and depression among unemployed people increased from 10.1% in June 2013 to 15.2% in March 2017. In the general population the increase was from 3.4% to 4.1%.
496:. Previously the Labour Party had expressed support for a regional cap on benefits rather than a national one without expressing a view on where the cap should be set and without stating whether the cap should be higher in London, where rents are highest.
1461:
657:
suggested that these two families would have to choose between "risking losing their homes, or returning to their abusers in order to escape the imposition of the cap." In
November 2013 the High Court dismissed the claim for the judicial review.
682:, said that: "claimants affected by the cap will, by definition, not receive the sums of money which the state deems necessary for them adequately to house, feed, clothe and warm themselves and their children." In reaction to the judgment the
666:
603:
in
England affected by the cap indicated that they were two-thirds more likely to be in rent arrears than other tenants claiming housing benefits, and that 28% of all households affected by the cap were receiving a
578:
in 2015 indicated that the reduction of the benefit cap in 2016 could affect at least 100,000 households, primarily in
Southern England, and the charity expressed concerns that those affected might be subjected to
130:
In April 2023 the benefit cap was increased for the first time since its introduction. The limits were raised by 10.1%, the same percentage as for inflation-linked social security benefits for that year. In the
1468:
985:
Clearly, the cap and the principles behind the cap are supported by
Government Members—that is, that people who are on benefits should not be earning more than those, for example, on average earnings.
1150:
1068:
558:
Concern was expressed that the 2016 reduction in the cap would seriously increase poverty and homelessness among affected families and would affect over 300,000 children. Research by the
570:
said: “A lower benefit cap is crueller and more damaging for children". Once the reduction had come into force, fears were expressed that children's life chances would be affected.
693:
Also in 2015, the benefit cap was the subject of a successful legal challenge on the grounds that it unlawfully discriminated against disabled people and their carers. In 2016
84:
restricting child tax credit and universal credit was introduced in 2017. It limits these benefits to the first two children in most households, and is referred to as the "
1454:
1132:
1049:
737:
poll published earlier that year, which found that 79% of people, including 71% of Labour voters, supported the benefit cap, while 12% opposed it. In the same year
743:
newspaper argued that, because the benefit cap applied regardless of family size, larger families were likely to be disproportionately affected. And also in 2013,
690:, said: "I am delighted that the country’s highest court has agreed with this government and overwhelming public opinion that the benefit cap is right and fair".
550:
Opinion polling showed strong support for the benefit cap. A poll carried out in July 2013 showed that 73% supported the policy and only 12% opposed the policy.
874:
456:
The benefit cap in
Northern Ireland is set at the "Outside London" rates, and families with children can apply for Supplementary Payments to reduce its impact.
1220:
160:, the principle behind the household benefit cap is that "people who are on benefits should not be earning more than those, for example, on average earnings".
515:
in the coalition government, who described the policy as "immoral and divisive" and voted against it in the House of
Commons. The Liberal Democrats in their
1262:
733:
magazine that "the cap is less a serious act of policy than a political weapon designed to trap Labour on the wrong side of the argument". Eaton cited a
139:
it was announced that, although inflation-linked social security benefits would rise by 6.7% in 2024, the benefit cap would not be raised in that year.
1373:
1202:
912:
562:(CIH) indicated that the number of families affected would be higher than the government expected and warned that continuing the policy would make
1243:
1594:
1280:
675:
19:
This article is about the limit on the benefit that an individual household can claim. For the limit on total government welfare spending, see
777:
132:
97:
1183:
68:
is a UK welfare policy that limits the amount in state benefits that an individual household can claim per year. It was introduced by the
636:
study says, they often have to use everyday living expenses to cover rental costs, leaving them without adequate clothing and reliant on
1358:
683:
157:
956:
492:, which reduced the benefit cap. Forty-eight of them rebelled and voted against the bill, including the future Shadow Chancellor
72:
government in 2013 as part of the coalition government's wide-reaching welfare reform agenda which included the introduction of
1420:
1340:
1026:
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512:
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estimated that 140,000 children (1.04% of children in the UK) and 60,000 adults would be affected by the measure.
124:
559:
1568:
1542:
1521:
772:
605:
217:
1527:
755:
Some critics argued that the initial level at which the benefit cap was set was too high. Conservative MPs
588:
473:
supported the benefit cap which was announced by George
Osborne at the 2010 Conservative Party conference.
212:
441:
89:
69:
850:
632:
567:
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113:
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983:. Vol. 557. Parliament of the United Kingdom: House of Commons. 28 January 2013. col. 663.
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724:
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1069:"John McDonnell speech: MP says he would 'swim through vomit' to oppose 'sickening' welfare bill"
470:
117:
504:
88:". These two benefit caps form part of a set of three benefits policies designed by the then
519:
campaigning have said they will abolish the two-child benefit cap if elected to government.
698:
440:
The initial regulations provided an exemption from the benefit cap for those who received
8:
1515:
616:
207:
167:
47:
Please help update this article to reflect recent events or newly available information.
1221:"Government welfare cuts blamed for 50% surge in mental health issues among unemployed"
620:
445:
192:
123:
The level of the benefit cap was subsequently lowered following an announcement in the
1010:
913:"Benefit cap's polling success paves way for tough 2015 promises | Coffee House"
821:
Kennedy, Steven; Wilson, Wendy; Apostolova, Vyara; Keen, Richard (21 November 2016).
687:
575:
481:
153:
937:
1494:
957:"DWP benefits recipients face payments cut next year – everything you need to know"
222:
177:
81:
73:
1281:"Two-child limit and the benefit cap fail to meet their own aims, study concludes"
1086:
678:
recommended that the government review the policy. Deputy president of the court,
667:
R (on the application of SG and others) v Secretary of State for Work and Pensions
1441:
187:
233:
The following are the total benefits that individual households are limited to.
1532:
1168:
803:
760:
600:
493:
485:
197:
93:
1583:
1203:"Lower benefit caps 'will exclude poor families from large parts of England'"
756:
729:
628:
508:
172:
1536:
739:
580:
1374:"Supreme Court: capping benefits does not breach human rights of children"
1509:
1504:
1341:"UK benefits cap is lawful but breaches UN children's rights obligations"
1303:"Benefits cap will have catastrophic effect on families, court will hear"
892:
875:"Benefit cap traps families in crowded, rat-infested homes, report finds"
563:
136:
101:
20:
1403:"The benefit cap isn't working for the poor, but that was never the aim"
1151:"More than 300,000 children dragged into benefit cuts, research reveals"
1476:
1263:"Benefit cap: single mothers make up 85% of those affected, data shows"
648:
The benefit cap has been the subject of a number of legal challenges.
507:
supported the introduction of the benefit cap but a notable rebel was
488:
ordered Labour MPs to abstain during the House of Commons vote on the
1184:"The questions Labour needs to answer about its regional benefit cap"
1050:"Conservative Party Conference: George Osborne announces benefit cap"
637:
539:
1027:"Hurley and others v Secretary of State for Work and Pensions 2015"
697:
announced the government's intention to exempt those in receipt of
623:, indicted that the benefit cap, in conjunction with the country's
1244:"Benefit cap leaves poor families with mounting debt, study shows"
1436:
979:
584:
734:
77:
single-parent families, half of which had a child under five.
1087:"BBC News – Liam Byrne: Labour supports regional benefit cap"
1300:
701:
from the benefit cap, in response to the High Court ruling.
1359:"Carers Allowance recipients to be exempt from benefit cap"
1200:
1133:
Scrapping two-child benefit cap would cost £3.4bn, says IFS
820:
612:
benefits capped, compared with 13,743 single claimant men.
542:
has said that it would abolish the two-child benefit cap.
531:
has said that it would abolish the two-child benefit cap.
100:. The third policy, introduced in 2013, was known as the
1423:(Press release). The Children's Society. 15 April 2013.
825:(Report). House of Commons Library. pp. 3, 8–9, 14
804:"'Thousands' hit by government benefit cap now in work"
1021:
1019:
674:, to which the UK is a signatory. Supreme Court judge
1110:"A very modest Lib Dem rebellion on the benefits cap"
116:
by the Coalition Government and was made law by the
1477:
Welfare reform in the United Kingdom (2010-Present)
1016:
615:A study published in 2023, which was funded by the
1351:
899:, published 31 January 2024, accessed 17 June 2024
893:Two-child benefit cap: 'Every month is a struggle'
112:The benefit cap was announced in the October 2010
763:argued for the benefit cap to be set at £20,000.
459:
1581:
1066:
851:"What impact did lowering the benefit cap have?"
1322:"Single mothers lose benefits cap legal battle"
849:Emmerson, Carl; Joyce, Robert (20 April 2023).
1338:
1319:
1301:Owen Bowcott; Amelia Gentleman (23 May 2013).
1296:
1294:
1241:
1201:Patrick Butler; George Arnett (20 July 2015).
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1101:
848:
778:United Kingdom government austerity programme
98:United Kingdom government austerity programme
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905:
1469:
1455:
996:House of Commons Library (14 March 2016).
710:the discriminatory effects are justified.
1421:"The benefit cap is 'a blunt instrument'"
1127:
1125:
1123:
954:
1361:. Disability Rights UK. 26 January 2016.
902:
868:
866:
864:
158:Secretary of State for Work and Pensions
1371:
723:Writing about the benefit cap in 2013,
444:. Those who work enough hours to claim
1582:
1120:
1047:
1009:Gov.uk (last updated 7 October 2016).
872:
627:, had contributed to rising levels of
1595:Social security in the United Kingdom
1450:
1169:"Lower benefits cap comes into force"
932:
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798:
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792:
672:Convention on the Rights of the Child
277:
1079:
938:"Constituency casework: Benefit Cap"
499:
448:are not subject to the benefit cap.
27:
1490:Under-occupancy penalty/Bedroom Tax
643:
451:
13:
1320:Patrick Butler (5 November 2013).
1242:Michael Savage (3 November 2018).
927:
837:
789:
631:in the 2010s. A 2024 study by the
513:Minister for Children and Families
356:
236:
14:
1606:
1430:
1372:Spencer, Michael (12 June 2019).
1067:Alexander Sehmer (21 July 2015).
1048:Porter, Andrew (4 October 2010).
955:Sommerlad, Joe (8 January 2024).
545:
1564:Welfare Reform and Work Act 2016
1437:UK Government's benefit cap page
1339:Patrick Butler (18 March 2015).
1108:Rafael Behr (22 November 2012).
873:Butler, Patrick (31 July 2024).
855:The Institute for Fiscal Studies
597:Department for Work and Pensions
490:Welfare Reform and Work Act 2016
464:
183:Employment and Support Allowance
32:
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1332:
1313:
1273:
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1213:
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1161:
1149:Rob Merrick (1 November 2016).
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980:Parliamentary Debates (Hansard)
125:July 2015 United Kingdom budget
1261:Rajeev Syal (4 January 2019).
1182:George Eaton (19 April 2013).
967:
948:
944:. UK Parliament. 14 June 2023.
885:
814:
664:issued judgement on the case,
560:Chartered Institute of Housing
522:
460:Positions of political parties
1:
1569:Housing and Planning Act 2016
1543:Support for Mortgage Interest
1522:Personal Independence Payment
783:
773:Poverty in the United Kingdom
606:discretionary housing payment
435:
1528:Employment Support Allowance
1171:. BBC News. 7 November 2016.
595:Statistics published by the
589:UK Council for Psychotherapy
534:
213:Severe Disablement Allowance
7:
1223:. Independent. 17 July 2017
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750:
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684:work and pensions secretary
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41:This article needs to be
942:House of Commons Library
1590:Welfare Reform Act 2012
1559:Welfare Reform Act 2012
1139:, accessed 17 June 2024
1013:. Retrieved 2016-11-01.
915:. blogs.spectator.co.uk
704:
651:
619:and carried out by the
118:Welfare Reform Act 2012
70:Cameron–Clegg coalition
1029:. Disability Rights UK
745:The Children's Society
517:2024 general election
505:The Liberal Democrats
203:Jobseeker's Allowance
168:Bereavement Allowance
133:2023 autumn statement
86:two-child benefit cap
1378:UK Human Rights Blog
1516:Council Tax Support
1401:(23 October 2013).
1054:The Daily Telegraph
617:Nuffield Foundation
446:working tax credits
208:Maternity Allowance
163:Affected benefits:
1309:. theguardian.com.
1285:University of York
810:. 6 February 2014.
621:University of York
471:Conservative Party
423:Single person rate
386:Single person rate
344:Single person rate
307:Single person rate
278:From November 2016
265:Single person rate
193:Incapacity Benefit
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688:Iain Duncan Smith
500:Liberal Democrats
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154:Iain Duncan Smith
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1287:. 17 July 2023.
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502:
479:
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438:
359:
357:From April 2023
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237:From April 2013
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1510:Pay to Stay
1505:Welfare cap
1500:Benefit cap
1442:Benefit cap
1089:. bbc.co.uk
1011:Benefit cap
564:Theresa May
529:Green Party
523:Green Party
137:HM Treasury
102:bedroom tax
66:benefit cap
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1584:Categories
1541:Reform of
1526:Reform of
1520:Reform of
784:References
695:Lord Freud
638:food banks
436:Exemptions
1383:20 August
1209:. London.
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540:Reform UK
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412:Main rate
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1093:17 April
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714:Reaction
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