Labour MP Paula Barker has urged Andy Burnham, the new Labour MP for Makerfield, to consider scrapping the Department for Work and Pensions (DWP) benefit cap. Barker, an ally of Burnham and a member of the interim council of the Mainstream group, warned that families “are often forced to turn to food banks to survive as a result” of the cap.
Current benefit cap list
The benefit cap currently applies to 10 benefits: Universal Credit, Bereavement Allowance, Child Benefit, Employment and Support Allowance, Housing Benefit, Incapacity Benefit, Jobseeker's Allowance, Maternity Allowance, Severe Disablement Allowance, and Widowed Parent's Allowance (or Widowed Mother's Allowance or Widow's Pension if started before 9 April 2001).
Government defends cap
DWP minister Sir Stephen Timms defended the policy, stating: “Being in work is the best way to avoid poverty. The benefit cap does give a modest but significant incentive to start work and then to progress in work.” He added that the cap does not apply to those unable to work due to disability or caring responsibilities.
Barker, who represents Liverpool Wavertree, told the Commons: “The abolition of the two-child limit by this Government was a key step in cutting child poverty. But some of the poorest families still see their benefits capped.” She asked: “Will the Government build on the abolition of the two-child limit and review the benefit cap to ensure that families with very young children are protected from poverty?”
Conservative response
Shadow work and pensions secretary Helen Whately criticised the call, saying: “Well, there we heard it a moment ago, a Labour backbencher calling for yet more money to be spent on benefits.” She added: “British people are sick and tired of footing the bill for Benefit Street and seeing welfare claimants living lives of luxury at their expense.” Whately challenged the government to adopt the Conservatives' plan to toughen the cap and save a billion pounds.
Government stance on reform
Sir Stephen responded: “If there is a plan, I’d be very interested to see it. We certainly haven’t seen any details of it. (Ms Whately’s) comments are a further example of her expressing dissatisfaction with the system left behind by her government for 14 years.” He confirmed the government would keep the policy under review but emphasised that the cap helps incentivise work. Referring to Labour, Whately later said: “They can change their leader but they are still the same old welfare party.”
