The Benefit Cap

New We coordinated a group of 18 Church of England bishops to express their opposition to the benefit cap. We briefed the Bishops on our serious concerns that this punitive benefit cap will disproportionately affect vulnerable children. This resulted in an open letter in the Observer with the Bishops stating that the Church of England has a "moral obligation to speak up for those who have no voice".

The Government plans to introduce a cap on household benefits for out of work households which would mean that out of work households would be unable to receive more in benefits than average earnings for a working household. The cap is expected to be set at around £500 per week per household for couples and lone parents.

The cap is intended to promote fairness between those in work and those receiving out of work benefits, and to promote incentives to move into work.

The Government estimates that approximately 50,000 households will be affected by the cap, losing £93 per week on average in benefit receipt.

Analysis by The Children’s Society reveals that children are disproportionately affected by these proposals. 220, 000 children will be affected by the cap, compared to 90,000 adults. This means that over 70% of those affected are children, making them nine times more likely than adults to be affected.

As a consequence of this proposed cap over 80,000 children could end up homeless. Children in very low income families, already likely to be living in poverty will be pushed into the most severe poverty, undermining their life chances.

The benefit cap is a proposal being introduced on the principle that it is unfair that some households receive more in out-of-work benefits than other households receive in work. It is intended to address those adults who are able to work but are unprepared to do so. However, our analysis raises important questions about the real impact of this policy. Children should not be punished for the choices made by their parents – yet it is children who are by far the largest group of losers as a result of this proposal.

We believe that the current proposal for a benefit cap fail to fulfil its aims. We urge the Government to rethink the benefit cap and consider alternative options, which will reduce the impact on children. Read an article in the Observer newspaper detailing our work about this issue.