People on Universal Credit, ESA, JSA, Tax Credits warned they've hit DWP 'limit'

People on Universal Credit, ESA, JSA, Tax Credits warned they've hit DWP 'limit'
-Credit: (Image: Reach Publishing Services Limited)


People on Universal Credit, Jobseekers Allowance and other Department for Work and Pensions ( DWP ) benefits are losing cash thanks to the cruel benefit cap. The benefit cap has seen thousands lose out on an increase in benefits this year.

There were a total of 123,000 households across England, Scotland and Wales who had their benefits capped as of May. It means 46,000 more families and claimants are being affected by the benefits cap, which impacts a string of benefits.

The benefit cap affects Universal Credit as well as Bereavement Allowance, Child Benefit, Child Tax Credit, Employment and Support Allowance, Housing Benefit, Incapacity Benefit, Income Support, Jobseeker’s Allowance, Maternity Allowance, Severe Disablement Allowance and Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001).

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Action for Children's Martha Hampson said: "The number of children affected by the policy has risen by a staggering 50 per cent in one quarter, which is due largely to the previous government's decision not to uprate the benefit cap at the same time it increased benefits in line with inflation."

"We must see this Government commit to putting an end to both the benefit cap and the two-child limit in its forthcoming child poverty strategy. Scrapping both is essential if we're to make any serious progress on reducing child poverty." Crisis chief executive, Matt Downie, said: "We cannot build a stable nation if we're giving with one hand and taking with another.

"By scrapping the benefit cap, the new Government can not only prevent homelessness for thousands, but it can mark a turning point in its mission to break down barriers to opportunity. We know the solutions needed to end homelessness for good, but the Government must be brave and bold enough to enact them."

A Government spokesperson said: "This is another example of the dire inheritance this Government faces too many people are trapped on benefits. We are taking bold action to support people into work, through reforming job centres and giving local areas the power they need to tackle economic inactivity, which will boost their finances and reduce the likelihood of being impacted by the cap."

"We are committed to supporting low-income families and our ambitious strategy along with a £421 million extension to the Household Support Fund will ensure we can drive down poverty in every part of the country."