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Labour pledges to scrap benefits cap - but frontbencher doesn't know how much it would cost

Debbie Abrahams, the shadow work and pensions secretary - PA
Debbie Abrahams, the shadow work and pensions secretary - PA

Labour has pledged to scrap a cap on welfare payments - despite not knowing how much it would cost to do so.

Debbie Abrahams, the shadow work and pensions secretary, said a Labour government would look at how to abolish the benefits cap which limits certain welfare payments for households to £20,000 outside London and £23,000 inside the capital.

However, while she insisted getting rid of the cap, which applies to approximately 116,000 households, would not cost an “astronomical” sum she admitted Labour had not actually costed the proposal.

Her comments come after the High Court declared on Thursday that the benefits cap unlawfully discriminated against single parents with children under the age of two.

Appearing on the BBC One’s Andrew Marr Show, Ms Abrahams was asked whether Labour planned to scrap the cap as part of its wider bid to bring about the end of austerity.

Debbie Abrahams, the shadow work and pensions secretary - Credit: Jeff Overs/BBC/PA
Debbie Abrahams, the shadow work and pensions secretary Credit: Jeff Overs/BBC/PA

She replied: “We would be looking to see how we do that.”

However, when pushed on how much that decision would cost taxpayers the Labour frontbencher was unable to say and her inability to put a price tag on the policy is likely to reignite concerns about the party’s economic credibility.

She said: “We haven’t costed it yet but we know that for example the court ruling is about £50 million so it’s not an astronomical figure and we need to make sure when we are talking about ending austerity, this is about making it fair.

“It is not right that four million children, three quarters of whom are living in working families, are subject to poverty.”

Mr Justice Collins last week ruled in favour of four lone parent families in their action against the Work and Pensions Secretary over the benefit cap, which limits the income households can receive in certain benefits.

David Gauke, the newly-appointed Work and Pensions Secretary - Credit: Chris J Ratcliffe/Getty Images Europe
David Gauke, the newly appointed Work and Pensions Secretary Credit: Chris J Ratcliffe/Getty Images Europe

The judge announced that the regulations are "unlawful insofar as they apply to lone parents with a child or children under the age of two" as they involve "unjustified discrimination" against parents and children.

However, the Department for Work and Pensions has confirmed it intends to appeal against the decision.

A spokeswoman said: "The benefit cap incentivises work, even if it's part-time, as anyone eligible for working tax credits or the equivalent under Universal Credit, is exempt.

"Even with the cap, lone parents can still receive benefits up to the equivalent salary of £25,000, or £29,000 in London, and we have made Discretionary Housing Payments available to people who need extra help."