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Good Society > Published by Guest, September 5th 2011 at 11:31 am

Cameron’s benefit cap rewards family break-up

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Writing in yesterday’s Mail on Sunday, prime minister David Cameron rooted the causes of the August riots in a deterioration in the nation’s values and argued this should be the government “that turns the tide on the anti-family feeling that has done such damage to this country’s values”; the benefit cap, however, will reward family break up, explains Sam Royston, poverty and early years policy adviser at The Children’s Society

David-CameronIn recent months, commentators, MPs, peers and even some ministers have raised concerns about a proposed benefits cap. When parliament convenes this week, it must address these concerns and make significant changes to support families.

The cap would limit benefits for out-of-work households to around £500 per week for couples and families with children or £350 per week for single people with no children. The coalition believes it would promote fairness, because it would prevent out-of-work households receiving more in benefits than the average household earns.

A closer look reveals that the cap is actually a painfully blunt tool, applied with little regard of people’s circumstances.

Not only would the cap disproportionately harm people who most need it, it runs counter to the coalition’s stated goals and needs to be reconsidered.

The Department for Work and Pensions’s equality impact assessment shows that 95 per cent of the households affected are likely to have children. Sixty per cent of those hit will be lone parent families and despite reassurances that households in receipt of Disability Living Allowance will be exempt from the cap, half of those affected are estimated to have someone with a disability in them.

In addition, there will be unintended consequences of the cap, which run contrary to key areas of government policy. In particular, in its coalition agreement, the government committed to reducing ‘couple penalties’ in the welfare system.

However, as I highlighted in a paper written for Family Action, this welfare cap would introduce one of the most substantial couple penalties ever seen in the benefits system. Couples have a higher benefit entitlement than single people. Job Seekers Allowance for a couple is £38.45 per week higher than for single people.

Therefore, compared to current entitlements, a couple with children and benefit entitlement in excess of the cap would lose up to £2,000 per year more than an equivalent single-parent household.

The benefits cap couple penalty is most apparent when two lone parent parents consider moving in together. Let’s say that Theresa and David are out-of-work, single parents who don’t know one another. They each have two children and pay £150 per week in rent. They receive benefit income of around £380 per week, which is below the £500 limit, so the cap would not affect them.

However, if Theresa and David met, fell in love and decided to move in together, they could pay a steep price for cohabitation if the cap is imposed.

Under the current welfare system, if the couple moved in together, as a four-child family, in a bigger, more expensive property costing £250 per week (still a £50 per week saving over renting separately), they would have a weekly benefit entitlement of around £640 per week.

Subsequently, the £500 benefit cap would chop the couple’s weekly income by £140 per week. As a result, they would lose nearly £7,300 a year, when compared to their current entitlement.

This would be likely to force Theresa, David and their children into the most severe poverty.  It could easily keep them apart.

Having understood the central logic of the benefit cap, we can clearly see the reverse: That a similar married couple would be £7,300 a year better off separating and dividing their children, than staying together.

  • http://twitter.com/pmofguiseley/status/110661806099406848 PMofGuiseley

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/anonymoosh/status/110662082202058752 Ceehaitch

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/mylegalforum/status/110662425036062720 Nick

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/sam_royston/status/110662516308324352 Sam Royston

    @leftfootfwd: Cameron's benefit cap rewards family breakup http://t.co/muRNXAk

    this is bad bad policymaking.

  • http://twitter.com/phdodd/status/110662634336030720 phil dodd

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/drdukeofurl/status/110662890037579776 larryb

    RT @leftfootfwd: Cameron's benefit cap rewards family breakup: http://t.co/GsW3EGd writes childrensociety '… (cont) http://t.co/A7B54de

  • http://twitter.com/bzz88/status/110662980148019201 HeyHo ~ Leonard Ho

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/c_a_jonestechno/status/110663699185942528 CAROLE JONES

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/davidhounsell/status/110663831746920448 David Hounsell

    Read our analysis of the #benefitcap and how it harms those who most need #welfare and introduces a couples penalty – http://t.co/rvNI8mp

  • http://twitter.com/extraditiongame/status/110665868123455488 Extradition Game

    RT @leftfootfwd: Cameron's benefit cap rewards family breakup: http://t.co/8vHIOjg writes childrensociety 's @sam_royston #NewsClub

  • http://twitter.com/mattwvincent/status/110669319037394944 Matt Vincent

    Cameron's benefit cap rewards family breakup: http://t.co/Kfz3rUC writes childrensociety 's @sam_royston

  • http://twitter.com/juderobinson/status/110670758115688448 CllrJuderobinson

    Cameron’s benefit cap rewards family breakup: http://t.co/61aVZxT explains @ChildrenSociety’s @Sam_Royston

  • http://twitter.com/erazman/status/110671460988747776 E Azicate

    Cameron’s benefit cap rewards family breakup: http://t.co/61aVZxT explains @ChildrenSociety’s @Sam_Royston

  • http://twitter.com/frances_coppola/status/110672761675976704 Frances Coppola

    RT @neildotobrien: Interesting LFF piece says welfare cap creates a couple penalty… http://t.co/kiMm1CL

  • http://twitter.com/labour52rose/status/110673001426587650 Alex Braithwaite

    RT @leftfootfwd: Cameron's benefit cap rewards family breakup http://t.co/OqjqE8D

  • http://twitter.com/davidhounsell/status/110675968208805888 David Hounsell

    "#benefitcap would harm people who most need support and runs counter to #coalition’s goals and should be reconsidered" http://t.co/rvNI8mp

  • http://twitter.com/therightarticle/status/110680540939681792 Michael

    Cameron’s benefit cap rewards family break-up l Left Foot Forward – http://j.mp/r7VrPB

  • http://twitter.com/festinagirl/status/110680656622796801 festinagirl

    Cameron’s benefit cap rewards family break-up l Left Foot Forward – http://j.mp/r7VrPB

  • http://twitter.com/lilminxv/status/110684106010009600 VeeBee

    RT @neildotobrien: Interesting LFF piece says welfare cap creates a couple penalty… http://t.co/kiMm1CL

  • http://twitter.com/breakupexpert1/status/110686388122419200 darren samm

    Cameron's benefit cap rewards family breakup: However, the government's planned benefit cap will reward family b… http://t.co/oIEhzon

  • http://twitter.com/oilywaters/status/110686612551237633 H. O.

    Cameron’s benefit cap rewards family breakup: http://t.co/61aVZxT explains @ChildrenSociety’s @Sam_Royston

  • http://twitter.com/brokenofbritain/status/110690948677238784 Broken OfBritain

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/pumperninkel/status/110691519131959297 Queen P

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/aspiemum/status/110691761562730496 Vanessa

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/cv_london/status/110692678194298881 CV London

    Cameron's benefit cap rewards family breakup: Couples have a higher benefit entitlement than single people. Job … http://t.co/ckaaNSh

  • http://twitter.com/cutchswife/status/110693211906899968 cutchswife

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/littleredbadger/status/110696998713311232 badger

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/thecsmuk/status/110697962618884096 The CSM

    Interesting article about how Tory benefit reforms reward the break up of family over at left foot forward – http://t.co/GWe6unb

  • http://twitter.com/ellenbroome/status/110699190186807297 Ellen Broome

    Read our analysis of the #benefitcap and how it harms those who most need #welfare and introduces a couples penalty – http://t.co/rvNI8mp

  • http://twitter.com/vivizaraz/status/110703359484370944 Rosie Scott

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/creativecrip/status/110709830276218882 TheCreativeCrip

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/jameslee42/status/110716228410159104 James Lee

    RT @leftfootfwd: Cameron's benefit cap rewards family break-up http://t.co/eNWjnja – interesting findings, seemingly unintended consequences

  • http://twitter.com/caer23/status/110720494805852161 ☠

    Cameron’s benefit cap rewards family break-up: http://t.co/iAEKLNZ (ht @BrokenOfBritain)

  • Leon Wolfson

    Been saying this since the proposals came out…

  • http://twitter.com/londoniww/status/110729227816542208 London IWW

    Cameron’s #benefits cap rewards family break-up http://t.co/PD6yrix | #PublicServices #Anticuts

  • http://twitter.com/tempasfujit/status/110738828393848832 people justice

    Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/oIfMqi7

  • http://twitter.com/childrensociety/status/110746170762084352 Children’s Society

    Cameron’s benefit cap rewards family break-up, writes @sam_royston http://t.co/tb5CuZG

  • http://twitter.com/ligomersall/status/110749702747717632 liane gomersall

    RT @leftfootfwd: Cameron's benefit cap rewards family break-up http://t.co/l9APNda #septembercomeback

  • http://twitter.com/breakupexpert1/status/110750515486396417 darren samm

    Cameron's benefit reforms reward family break-up | Left Foot Forward: David Cameron has rooted the causes of the… http://t.co/ObgbdvM

  • Lucy

    In the real world, where people are honest, most live for less than £2000 a month. Dry up.

  • http://twitter.com/breakupexpert1/status/110766250749198336 darren samm

    Cameron's benefit cap rewards family break-up: Therefore, compared to current entitlements, a couple with childr… http://t.co/zrNLvxk

  • http://twitter.com/sbudden72/status/110766376704147456 Stephen Budden

    RT @BrokenOfBritain: Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/k9KKKgu

  • http://twitter.com/internetspecial/status/110771440667729920 Ligia Cardenas

    Cameron's benefit cap rewards family break-up: In recent months, commentators, MPs, peers and even some minister… http://t.co/b2qqbZd

  • Leon Wolfson

    And the right anti-disabled brigade jump RIGHT in. It’s dishonest to claim benefits in their world…

  • http://twitter.com/postpolionews/status/110884740852219904 Chris Salter

    RT @BrokenOfBritain: Cameron's benefit reforms reward family breakup | Left Foot Forward http://t.co/x1b0FHT #ppnews

  • http://twitter.com/elizfinncare/status/111016317779316736 Elizabeth Finn Care

    The benefits cap would disproportionately harm the people who most need it most – http://t.co/rSzpdYK

  • http://twitter.com/paulnez/status/111024858548289536 Paul Nezandonyi

    The benefits cap would disproportionately harm the people who most need it most – http://t.co/5TA36E8 /via @elizfinncare

  • http://twitter.com/stephen_beer/status/111530755800301570 Stephen Beer

    RT @leftfootfwd: Cameron's benefit cap rewards family break-up http://t.co/WcV73Ql

  • http://twitter.com/mcmlxxvi_ad/status/121597501114560512 .

    If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/gQ7Xv3Hi #cpc11 #con11

  • http://twitter.com/andy_gilpin/status/121597613073121281 Andy Gilpin

    If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/gQ7Xv3Hi #cpc11 #con11

  • http://twitter.com/houseoftwits/status/121599338198740992 House Of Twits

    RT @leftfootfwd If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/eQtNG74i #cpc11 #con11

  • http://twitter.com/mancman10/status/121605218575192064 Ian

    RT @leftfootfwd If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/eQtNG74i #cpc11 #con11

  • http://twitter.com/loopyb_75/status/121605681743790081 Louise

    If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/gQ7Xv3Hi #cpc11 #con11

  • http://twitter.com/crowmogh/status/121609240375865346 Cookie Monster

    RT @leftfootfwd If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/eQtNG74i #cpc11 #con11

  • http://twitter.com/christoclifford/status/121610400566480896 christine clifford

    RT @leftfootfwd If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/eQtNG74i #cpc11 #con11

  • http://twitter.com/spsot/status/121625721763397632 Spir.Sotiropoulou

    RT @leftfootfwd: Cameron's benefit cap rewards family break-up http://t.co/Xg53rxyg

  • Richard

    “2.In the real world, where people are honest,”

    You wouldn’t believe it the way the right bangs on about the nation’s dishonesty – except its own.

  • http://twitter.com/ruthyie/status/121659034725138432 Ruth Smith

    RT @leftfootfwd: If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/EfzjXQ90 #cpc11 #con11

  • http://twitter.com/unite785/status/121837556684947456 Brnch Sec Ruth H

    If marriage is so important Cam, why will housing benefit reform incentivise break up: http://t.co/gQ7Xv3Hi #cpc11 #con11

  • http://twitter.com/sam_royston/status/160003097496780800 Sam Royston

    @patrickjbutler benefit cap introduces big couple penalty contrary to coalition agreement to get rid of them:

    http://t.co/Vv2yildb

  • http://www.leftfootforward.org/2012/01/exposed-six-myths-of-the-benefits-cap/ Exposed: The six myths of IDS’s benefits cap | Left Foot Forward

    [...] Cameron’s benefit cap rewards family break-up – Sam Royston, September 5th [...]