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Benefit Cap

Volume 688: debated on Monday 25 January 2021

The proportion of individuals capped remains very low in relation to the overall UC case load and exemptions continue to apply. There remains a statutory duty to review the cap within this Parliament. However, we are in an unusual economic period, and any decision will need to consider potentially counter-intuitive and shifting trends.

I thank the Minister for that answer, but at a time when all of us know constituents who are struggling through the crisis which has brought them such hardship through no fault of their own, are the Government really going to impose the benefit cap on tens of thousands of families with children when the so-called “grace period” comes to an end? Is that really true? If it is, can she tell me this: how is that fair?

The benefit cap provides fairness for hard-working tax-paying households as a clear incentive to move into a job where possible. Universal credit households are exempt from the cap if the household earnings are at least £604 a month. I reiterate to the House that the amount of individuals capped remains very low in comparison to the UC case load, at around 3%.