Crisis calls on the UK government to scrap the benefit cap to tackle poverty and prevent homelessness for thousands

Today, the Department for Work and Pensions has released the latest statistics on how many households had their benefits capped between April 2013 and May 2024. The key findings from the release show: 

• 123,000 households had their benefits capped by the end of May 2024, a rise of 61% (46,000) on the previous quarter (February 2024). 

• In real terms, this has left households worse off by an average of £256 per month because of the benefit cap.  

• The majority (87%) of households being hit by the benefit cap include children (110,000 households). 

• Households most impacted by the cap remain concentrated in London and the south where the cost of renting is highest.  

The previous government increased the majority of benefits by 6.7% in April of this year including Universal Credit. Alongside this Local Housing Allowance levels were increased so that they cover the cheapest 30% of rents in a local area. While this additional support reduced some of the financial pressure on struggling families, the impact of the benefit cap will have stopped many people from receiving this extra help.  

Crisis is calling on the UK government to scrap the benefit cap to help prevent homelessness and provide opportunities for families and individuals to move into a home of their own.  

Matt Downie, Crisis Chief Executive, said: 

“With homelessness already at record levels, it’s deeply concerning to see such a staggering rise in the number of households having their benefits capped. Behind these figures are struggling parents who will be spending anxious nights worrying about how they will put food on the table or keep a roof over their children’s heads. 

“Through our services we see the hardship brought on by rising living costs and unaffordable rents which is pushing more and more people to the brink. While the amount low-income households receive to help pay their rent rose earlier this year, we know for thousands this vital support will have been completely wiped out by the impact of the cap. 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.”

-Ends- 

Notes to Editor 

The Department for Work and Pensions today published new official statistics showing the number of households having their benefits capped to May 2024. 

The benefit cap is a limit on the total amount of benefit that most working age people can get and affects a number of benefits. 

The amount of benefit a household receives is reduced to ensure claimants do not receive more than the cap limit. The benefit cap can be applied through either: 

• Universal Credit (UC) 

• Housing Benefit (HB) 

The latest release is available here: Benefit cap: number of households capped to May 2024