The most recent statistics, released last week, show that 140,000 households with children have had their benefit capped. The proportion remains low by comparison with the overall universal credit case load. New and existing claimants can benefit from a nine-month grace period when their benefit will not be capped if they have a sustained work history, and exemptions of course also remain in place for vulnerable claimants. Since the introduction of the cap, 190,000 households are no longer capped under such benefits and nearly 80,000 are no longer capped under UC.
The number of households with children receiving universal credit who are subject to the benefit cap in my Bedford and Kempston constituency rose by a staggering 186% between January and May this year, so will the Minister guarantee that the £20 UC uplift will reach the families who need it?
My understanding is that 460 households with children are subject to the UC cap in the Bedford local authority area. I am conscious that that is a higher number than the hon. Gentleman may wish, but I point out to him that we can also make the effort to encourage people to go for vacancies, so that they can start to earn more money, which at some point triggers a removal of the benefit cap.
The number of households affected by the cap has more than doubled since the start of the pandemic, to 170,000. In addition, 160,000 households will come to the end of their nine-month benefit cap grace period in the coming month. Will the Secretary of State consider extending the grace period, to avoid cutting the benefits of hard-pressed families in the run-up to Christmas?
The statistics indicate that 140,000 households with children have their benefit capped; my understanding is that overall it is about 3.1% of the UC case load. I am conscious of the fact that the right hon. Gentleman wrote to me last week, in his role as Chairman of the Select Committee, with a variety of questions on the benefit cap. I will respond to him shortly, and I believe that is one of the questions he has asked me to address.
Some 85% of capped households have families with children, and the Minister revealed last week that more than 160,000 households on UC could see their benefits capped in December, when their grace period comes to an end. Does she feel no shame in plunging families and children into hardship right before Christmas? Children are paying the price for their parents losing their jobs. This is a ticking time bomb and she can stop it—it is her choice: will she scrap the cap?
The cap has been in an important part of policy in trying to stimulate entry into work. I am conscious that there are still only about half a million vacancies, compared with a significant number of people unemployed. However, I am sure the hon. Lady will welcome, with me, some of the actions that are possible for some of the most disadvantaged families, particularly those supported by the £170 million covid winter grant, from which I understand her local council will benefit to the tune of about £823,000.
What recent assessment she has made of the effectiveness of the more than minimal test for determining housing benefit payments for supported exempt accommodation.
Local authorities apply the minimal test for determining housing benefit for supported accommodation. No assessment has been made of the effectiveness of the more than minimal test for housing benefit. However, we are reviewing the guidance to help improve consistency in decision making.
The annual housing benefit bill in Birmingham for supported exempt accommodation is now a massive £200 million. Too many housing providers are exploiting the extremely weak regulations that govern the payment of enhanced housing benefit; all they have to do is show that the support they provide is more than minimal, and this is causing misery for vulnerable tenants and the communities they live in. Will the Minister meet me to discuss the situation in Birmingham, and will he put forward urgent proposals to change the situation and get a grip of this growing national scandal?
Although we recognise there are problem areas, it is worth noting that the majority of supported housing is provided by well-run registered social landlords with a strong social mission. These are regulated by the Regulator of Social Housing, for registered charities, or by the Charity Commission. But I do recognise that there is a problem, and I would be happy to meet the hon. Lady.
Dr Kieran Mullan (Crewe and Nantwich) (Con)
ConservativeBexhill and Battle
What steps her Department is taking to encourage businesses to participate in the kickstart scheme.