Work and pensions minister urged to consider axing benefit cap

Will Meakin-Durrant, Press Association Political Staff

A Labour MP has called for the Government to consider axing the benefit cap.

Paula Barker, an ally of Andy Burnham, warned families “are often forced to turn to food banks to survive as a result” of the cap, which limits the total amount in benefits a working-age household can receive.

The cap does not apply to all benefit claimants, such as people who receive universal credit because they are disabled or they care for someone with a disability.

It is different from the former two-child limit, which ended in April and restricted universal credit claims to support only the first two children in most households.

Social security minister Sir Stephen Timms described the ceiling as a way of encouraging benefit claimants into work.

He said: “Being in work is the best way to avoid poverty.

“The benefit cap does give a modest but significant incentive to start work and then to progress in work.

“Some people are not able to work, so the cap doesn’t apply to people out of work on disability or caring benefits, but for others it remains in place.”

Ms Barker, who is on the interim council of the Mainstream group, which is linked to Mr Burnham, told the Commons: “The abolition of the two-child limit by this Government was a key step in cutting child poverty.

“But some of the poorest families still see their benefits capped.”

The Liverpool Wavertree MP asked: “Will the Government build on the abolition of the two-child limit and review the benefit cap to ensure that families with very young children are protected from poverty?”

Sir Stephen replied: “Well, we’ll certainly keep the policy under review.

“But at the moment, there are too many people in poverty through being out of work and the cap does help by increasing the incentive to work.”

Helen Whately, the Conservative shadow work and pensions secretary, said: “Well, there we heard it a moment ago, a Labour backbencher calling for yet more money to be spent on benefits.”

She added: “British people are sick and tired of footing the bill for Benefit Street and seeing welfare claimants living lives of luxury at their expense.

“(Mr Burnham) has called for more collaborative politics, so will (Sir Stephen) adopt our plan to toughen up the benefits cap and save a billion pounds off the benefits bill?”

Responding, Sir Stephen told MPs: “If there is a plan, I’d be very interested to see it.

“We certainly haven’t seen any details of it.

“(Ms Whately’s) comments are a further example of her expressing dissatisfaction with the system left behind by her government for 14 years.

“We’re reforming the system, making sure it’s doing the job we need it to do, and we’ll carry on with that programme of reform.”

Referring to the Labour Party, Ms Whately later said: “They can change their leader but they are still the same old welfare party.”

The benefit cap stands at £1,835 per month for couples and single parents outside Greater London, or £2,110.25 for couples or single parents in the capital.

Mr Burnham is treading a path into No 10, after Sir Keir Starmer announced his resignation last week.