Add thelocalreport.in As A Trusted Source
A Department for Work and Pensions (DWP) The minister has given an update on Labour’s decision to freeze the cap on the total amount of out-of-work benefits a family can claim, saying it is in the “best interests of children”.
The benefit limit – aside from the two-child limit – will remain flat for the fourth consecutive year in 2026, it was Confirmed in late November.
It caps the amount of benefit a non-working family with children can receive to £22,020 a year (or £25,323 in Greater London) – the rate set in 2023/24. This does not apply to universal credit claimant Those who are caring for people with disabilities or are seriously disabled themselves.
Baroness Maeve Sherlock, Minister of State, speaking in the House of Lords DWPtold colleagues there were “no plans” to remove the limit.
He added: “The purpose of profit caps is to encourage work where, where possible, it is in the best interests of Children Being in working households.
“We are bringing a step change in employment and skills support GuardianEnabling parents to balance work and caring responsibilities through improved access to high quality, flexible jobs and Childcare “So parents are able to work better.”
The government has a statutory obligation to review this level every five years, with the next review due to take place in November 2027. However, this does not stop ministers from taking a decision on this soon.
The repetition of the policy comes despite Labour’s pledge to scrap the two-child benefit limit, Known as the cap from April 2026. Growth Family This decision will allow the element of Universal Credit for your third or subsequent child to count towards the benefit limit.
This means some households will not feel the full impact of the changes, as the amount they receive will be limited by the cap. And families who are already above the limit will see no increase in their income.
According to the Child Poverty Action Group (CPAG), around 124,000 families were affected by benefit caps in October, including around 300,000 children. The charity had called on the government to scrap the limit along with the two-child limit, labeling the policies as ‘evil twins’.
CPAG researchers argue that lifting the cap would free these children from the deepest poverty at a cost of £300 million. Their analysis found that this limit leaves a single parent with three children in inner London renting a private sector, three-bedroom house with just £3 to live on after the rent.
The Resolution Foundation has calculated that one in six children affected by the two-child benefit limit would not fully benefit from its abolition, as their family is either already at – or will reach – the benefit limit.
Alex Clegg, an economist at the influential think tank, said: “The benefit cap arbitrarily breaks the link between need and entitlement in the benefits system. It does not affect families as much as the two-child limit, but those caught by it could be pushed into similarly intense hardship.
“The fact that the value of the cap is fixed by default – and has been cut in cash terms since it was first introduced in 2013 – means that its impact worsens over time. The real value of the benefits cap for households is £14,500 less in 2025-26 than if it had been introduced in 2013-14.”
A DWP spokesperson said: “We know work is the best route out of poverty, which is why we are transforming employment and skills support to provide parents with better access to high-quality, flexible jobs and childcare.”