Families hit by the benefit cap soar in East Dunbartonshire

The UK Government has ignored calls from charities to suspend the cap, while acknowledging the pandemic had caused a record rise in the number of households affected across Great Britain.

Department for Work and Pensions figures show 77 households had their benefits capped in East Dunbartonshire in May.

This was a rise of 29 on the number capped in February, when there were 48 families who had either their housing benefit or Universal Credit payment reduced.

The cap limits how much households can receive in total benefits, and currently kicks in at £20,000 per year for families in East Dunbartonshire and most of the UK, but £23,000 for those in London.

The number of families capped across Great Britain rose to 154,000 over the period – an increase of 93%.

The DWP said the rise, which was the biggest since the policy was launched in 2013, was “driven by an unprecedented increase of 665% in the number of newly Universal Credit-capped households, a reflection of the impact of the Covid-19 pandemic”.

The UK Government has decided to increase the weekly Universal Credit payment by £20 a week between April 2020 and March 2021 due to the pandemic, but Work and Pensions Secretary Therese Coffey said last month there are “no plans” to make any changes to the benefit cap system for the same duration.

In Scotland, the number of families hit by the cap rose to 6,034 in May, compared to 3,428 in February – an increase of 76%.

Shelter Scotland director Alison Watson said: “With thousands of people losing work as a result of the pandemic, leaders across the UK should be focused on protecting families’ incomes and keeping them in their homes.

“But, instead, the benefit cap is forcing families into poverty and hardship at the worst possible time.

“By increasing funding for crisis grants, the Scottish Government has gone some way to plug the gap in household budgets.

“But this problem needs to be tackled at source. The UK Government must scrap the cap.”

Anti-poverty network Poverty Alliance said Covid-19 has underlined the importance of the social security system, but has shown how many gaps there are in the system.

Peter Kelly, director of the group, added: “The benefit cap, in putting an arbitrary limit on household incomes, breaks the link between what people need and the support they receive.

“At a time when families across the country are struggling to stay afloat, the benefit cap is locking them into poverty – it must be scrapped now.”

SNP MSP Shona Robison said: “The SNP has long called for an end to the benefit cap, which hits families with children hardest.

“If the Tories were really serious about improving people’s lives they would scrap this harmful policy now.”

Of those now affected by the cap in East Dunbartonshire, 69% (53) are single parents – compared to 62% across Britain.

A DWP spokesman said: “The benefit cap ensures fairness for hard-working taxpaying households and a strong work incentive whilst providing a much-needed safety net of support.

“We remain committed to helping the most vulnerable in society, which is why we currently spend more than £95 billion a year on the benefits system, supporting more than 7 million people.”