Why is the benefit cap still in place?

[Mrsbeanz]

Why haven't the government scrapped the benefit cap as it was introduced to get people into work. Why at a time when people are losing jobs and finding it hard to find work, and many being told they shouldn't go to work should people still be capped? It just forces people into.poverty and homelessness. Especially since rents are high and a housing crisis

Money

I'm not sure the economy is in a state where we can give unlimited benefits. The financial aftermath of covid is going to be brutal and tbh, we're all fucked.

The point of it was to punish people. It was never about "getting people into work" . It was always about impoverishing people and forcing them from their homes.

That's why it's still here. Because they still want to punish people for being poor, unemployed or disabled.

user I'm not saying I agree with it but it turned out some people on benefits were getting more than people working. Surely that's not right? It doesn't really affect middle class people but I think some on low incomes & zero hour contracts must have felt hard done by. It does however seem bonkers to me that you could get more on benefits than a family with say nurse, teacher, police person as the main earner. I remember DH was first year of teaching when we had DD so on £19k. I had to go back to work pretty quick. It never occurred to me that we might have had more cash had I not worked & we'd claimed tax credits. As it was we were on about £33/34k for a few years and just above threshold for any tax credits.

It's not about giving unlimited money vetty. Just enough to cover rent and needs bases on each family situation. They seem to be throwing money at everything and it's making me feel uncomfortable. Remember the money wasted on unusable PPE.Today I heard they will be paying for people coming from abroad to stay in quarantine hotels. Matt Hancock justified spending £43,348 of tax payers money on nine take away orders. Yet if you've lost your job in the pandemic and your rent is too high , tough! Doesn't matter of you have children. You will be capped ,it just doesn't make sense. They might of got away with it before the pandemic but how can they continue to justify it now?

So disabled people should be left without enough money to heat their homes or pay their rent, because some other people feel jealous if the disabled people have enough money to live a worthwhile life?

What is not right is for people to be impoverished deliberately.

The cost of poverty, malnourishment, poor health, emergency housing, etc is far greater than just covering the cost of people's housing and living needs.

We can afford it. We choose not to. Because "why should they have something I don't" apparently.

I think if benefits are the sole income, the benefits cap is still justified. Why should people who are able to work, have a higher income than people who do work?

On the other hand, I agree that the cap should be scrapped or set higher for people who need benefits as a top up. That or get a decent, livable NMW for working people.

Staying at a quarantine hotel will be at the travellers own expense.

@converseandjeans definitely agree with this - as a single parent with 3 primary school kids I received more "take home" pay a month in benefits than I currently earn as gross salary.

The equivalent gross salary I'd have needed to maintain the take home element would have been £34,000 before I even considered childcare to allow me to work - that just wasn't right & provided no incentive for people to work.

Not that I agree with the current cap - the entire benefits system needs a proper overhaul but that would take years & cost billions so no chance it'll ever happen.

I think it's fair that people have different views on the benefit cap but I just don't understand why it's still being applied during a pandemic where people who want to work can't because of government shutdowns. And how they expect people to move to cheaper housing when it's just not available. It's forcing people into poverty.

User I fell for the austerity myth until I saw how they spend when they want to.

JaquelineBeanstalk I thought I heard on LBC they would pay the initial cost but now understand the government will pay the upfront cost , and they hope to recoup the money by requiring travellers paying a fee for their stay.

Benefit cap is not applied if the person is disabled.

I don't disagree with the idea of a cap on benefits but the current set up is ridiculous. Outside of London it's £1666 per month no matter where in the country you live. So a single parent with one child living in the north will get the same as a single parent with 3 children living in the south east. Rents are not the same country wide, people have different housing needs (none of the 'shouldn't have children if you can't afford them bollocks please. Circumstances change. The last year has definitely proved that one!)
Housing benefit/housing element of UC is based on the local housing allowance rate so why can't the benefit cap at the very least be aligned with this?

Also, the benefit cap only kicks in if you are earning below £606(ish)pcm which is 16hrs on NMW. There is a 9 month grace period before the cap is applied to allow for a job loss and taking a while to find a new one or maternity leave etc but I've heard nothing about what's happening for the people who have been furloughed on 80% of their NMW therefore meaning they're his with the cap around now. Assuming they've been furloughed continuously although I don't know how long it takes to have the threat of cap removed once you start your 'grace period'

Have you written to your MP?

I thought it had been scrapped. The minimum income floor has.

@AnneLovesGilbert My MP is amazing and I have recently emailed him about this (doesn't actually affect me but does lots of people I work with) and he's 'looking into it' to see if he can get some support to change it. Obviously he needs a suggestion as to how it can be improved that's a bit more realistic than just scraping it which is what he'd like.

@Mandalakia Nope, one client of mine has been hit with it this month (not furlough related but indirectly caused by Covid). It came as a shock to her even though to be fair it has been a warning on her universal credit statements she just doesn't look at them properly because it's identical every month

I am a single parent with 3 children. Studying to eventually work for the NHS. My rent is £1400 per month. My children share a bedroom. I get £1434 per month universal credit because of the benefit cap.

I also didn’t get the £20 per month increase

@Attippingpoint

I am a single parent with 3 children. Studying to eventually work for the NHS. My rent is £1400 per month. My children share a bedroom. I get £1434 per month universal credit because of the benefit cap.

£1400 a month is a huge amount to be getting in benefits though.

I realise your rent is high so things dont balance but come on, £1400 a month, that's more than a lot of people's wage.

Benefit cap is not applied if the person is disabled.
Bedroom tax does though.

smoothchange
I’m fairly sure that attippingpoint isn’t setting her own rent, or are you suggesting they move somewhere smaller and cheaper? It’s not always an option.

@Attippingpoint

I am a single parent with 3 children. Studying to eventually work for the NHS. My rent is £1400 per month. My children share a bedroom. I get £1434 per month universal credit because of the benefit cap.

From the Citizens Advice web page on UC Benefit Cap amounts

In a couple or have children and live outside London £1,666.67 (in London £1916.67)

The childcare element isn’t affected by the Benefit Cap. It doesn’t matter if the amount you get for childcare means you’re paid more than the Benefit Cap amounts.
Do you know why you are below the Cap?

Because people should be encouraged to work rather than not work.

The cap is more than enough money. If your rent is too high then move.

*The point of it was to punish people. It was never about "getting people into work" . It was always about impoverishing people and forcing them from their homes.

That's why it's still here. Because they still want to punish people for being poor, unemployed or disabled.* This

@Travellor Child benefit is included as a benefit so I would assume that added on to the amount of UC that @Attippingpoint gets brings her up to the cap.

The benefit cap affects:
• Universal Credit
• Bereavement Allowance
• Child Benefit
• Child Tax Credit
• Employment and Support Allowance
• Housing Benefit
• Incapacity Benefit
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• Severe Disablement Allowance
• Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)