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Scrap benefit cap to avoid eviction crisis, Labour tells government
Ministers must scrap the benefit cap to avoid an eviction crisis when the ban extension ends next month, Labour has said.
Shadow employment minister Seema Malhotra has written to the government demanding figures on how many households caught by the benefit cap are at risk of eviction once the current moratorium ends on 20 September.
The benefit cap imposes a limit on how much households can receive in welfare support, up to £23,000 a year for a family in London and less for those elsewhere in the country and single claimants.
Figures released earlier this month showed that the number of households caught by the cap nearly doubled between February and May up to more than 150,000.
Affected households have their incomes restricted by £248 a month on average, with around two-thirds being single-parent families.
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Ms Malhotra said: “This policy pushes families and children into poverty.
“With the extension of the ban on evictions, the government must scrap the benefit cap to prevent further rent arrears and evictions at a time when families need support the most.”
Benefit claims have soared since the coronavirus pandemic hit the UK in March, with around 5.2 million now people receiving Universal Credit.
On Friday, ministers announced a last-minute extension to the ban, first introduced in late March, on evictions in England and Wales.
In late July, the government told the Social Security Advisory Committee that it had no plans to change the benefit cap.
The welfare policy watchdog had warned that the cap is compromising boosts to the benefit system introduced since March.
A government spokesperson said: “The government has taken unprecedented action to support renters during the pandemic, and our extension of the ban on evictions for a further four weeks means no renters will have been evicted for six months.
“The benefit cap, which can be up to the equivalent of a £28,000 salary, ensures fairness for hard-working taxpaying households and a strong work incentive, while providing a much-needed safety net of support.”
