Number of households affected by benefits cap in Camden and Westminster rises

The number of households receiving Universal Credit (UC) or housing benefit (HB) in the London Borough of Camden and the City of Westminster affected by the Government’s benefit cap has soared in just three months during the spring this year.

Camden households affected by the cap rose from 541 in February to 711 in May; in Westminster 658 households were capped in February, increasing to 746 in May, according to figures published by the Department of Work and Pensions.

Campaign groups Shelter, Women’s Aid and the Child Poverty Action Group have demanded the cap to be scrapped as it punishes children, survivors of domestic abuse, and is a direct cause of homelessness.

The cap in London restricts the maximum amount of benefit to £25,323 for families with children, and £16,967 for single adults with no children. It has operated since April 2013 and was initially applied via HB, and later to UC as it was rolled out. Most claims are now capped via UC.

Across England, Scotland and Wales, 123,000 households had their benefit capped at May 2024. London has the highest proportion of UC households affected by the benefit cap with nearly 37,000 households affected — 4.1 percent of those receiving benefit. Scotland has the lowest proportion at 0.7 percent of those on benefits.

The overall benefit cap operates separately to the two-child benefit cap.

Last month a government spokesperson told the Guardian: “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 £421mn extension to the Household Support Fund will ensure we can drive down poverty in every part of the country.”