The original benefits cap limited the total benefits payable to any one household to £26,000. The argument was that the average household income is £26,000 that people should not be better off on benefits than if they were in work. The aim was to ‘encourage’ more people back into work, as the cap could be avoided if one of the members worked for at least 16 hours a week.
Damian Green, the Work and Pensions minister, has claimed that this strategy was a “real success” – a rather callous comment given the hardship it has imposed on a large number of families. In fact, of the 79,000 people who have already been subjected to a benefits cap, only 23,000 (30%) have managed to find the level of work that would allow them to retain their benefits.
From today the cap will be lowered even more, to £23,000. This will affect a further 88,000 people, with the average household losing £2000 each year. Single parents will be worse hit, as many anecdotes demonstrate.
The party has tabled a motion in the Lords, to be debated on Tuesday, which proposes that there should be increased support for getting people back to work. This is, of course, only a part of the solution to deal with a very messy situation.