Seekers cold and hungry
BENEFITS CAP IMPACTS VULNERABLE
A TOUGH new benefits cap has forced people to turn off their heating, go without food and borrow money from friends to get by.
The impact of the Government’s cap on benefits was revealed in reports from Durham County Council and Newcastle City Council.
County Durham reported that families were experiencing “significant debt”.
Council officials said: “Although a downward spiral has started the long term impact is not yet known, as the clients are in a phase of borrowing, receiving food parcels and in some cases leaning on family for financial support but these are not long term sustainable solutions.”
The comments were made in written submission to MPs, who are holding an inquiry into the impact of the benefits cap.
It was introduced gradually across the country in late 2016 and early 2017, and limits the amount any household can receive in benefits to £20,000-a-year for a household with children living outside Greater London, or £13,400 a year for a single person.
It replaced the old cap which limited benefits to £26,000 a year for a family with children and £18,200 a year for a single person with no children.
As a result, the total number of households affected by the cap grew from 20,000 to more than 70,000.
The new households bought into the cap had their benefits cut.
Affected households are typically those with larger numbers of children, and higher housing costs.
The Government argues that the cap is designed to reduce spending on benefits and encouraging people to work.
It will also maintain public confidence in the welfare system by making it fairer, according to the Government. But local council officials suggested the cap was failing to meet these goals. Durham County Council officials in the authority’s “Housing Solutions” team contacted people whose incomes would be cut, saying: “Many tenants accepted they would have less disposable income.
“Some of the tenants visited were in part-time employment on low incomes, some were referred for employability advice and wanted to go into work and others were unable to work for medical reasons. “Housing Solutions analysed a selection of tenants and found many with more than one loan and a number had more than five loans. “Tenants had advised they were going without heating or food and borrowing money from friends and family to see them through.” Newcastle City Council said cutting benefits did not encourage people to find work.
Officials said: “Triggering an income shock by reducing welfare benefits to residents in vulnerable circumstances doesn’t incentivise them to start work when their original issues still exist.
“That income shock only serves to add complexity to already complex lives and diverts the costs to other publicly funded organisations who are subsequently providing support to prevent and respond to the increased risks of financial crisis.”
People affected by the benefit cap were often unable or reluctant to work because of mental and physical health issues, childcare responsibilities, lack of confidence or a lack of previous work experience and basic qualifications, the council said.
Tenants had advised they were going without heating or food and borrowing money from friends and family