The government's flagship plan to cap benefits at £500 a week per family has been thrown into crisis after the Liberal Democrats broke coalition ranks to complain that the policy risks increasing child poverty and homelessness. In a move that suggests a more assertive approach by Nick Clegg's party, the Lib Dems have joined forces with leading charities and senior figures in local government to argue that a rigid cap could have a disastrous effect on families living in areas where the cost of housing is highest. Jenny Willott, the Lib Dems' welfare spokesperson, told the Observer that she was pushing ministers to make major changes to avoid throwing more children into poverty and adding to homelessness. Willott made clear she had Clegg's support and believed that ministers would amend their plans to ensure they pass through the Commons. She wants ministers to build more flexibility into the system – and to consider removing child benefit from the cap altogether. This, she argues, would help families with children in areas such as London who could end up paying £400 a week on housing, leaving just £100 to meet their other costs. Read more on The Observer website. 
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