Bishops Urge Peers to Block Welfare Changes

A group of bishops is calling on peers in the House of Lords to amend the Welfare Benefits Uprating Bill to protect children.  In a letter to the Sunday Telegraph the 43 bishops argue the bill will ‘hit the poorest hardest’ and note: ‘About 60 per cent of the savings from the uprating cap will come from the poorest third of households.’  Read the full letter on the Sunday Telegraph website.

Peers Call For Review Of 1% Cap to Benefit Rises

Peers have called for the government to review its controversial plans to cap increases in benefits to ensure the private rented sector does not become unaffordable to welfare claimants.  Local housing allowance base rates, used to calculate housing benefit levels for private renters, will be capped at 1 per cent for two years from April 2014. Labour peer Baroness Patricia Hollis has called on the government to review the relationship between benefits and market rents every year. She called for the government to publish a review each year and for the secretary of state to change the policy if there is ‘a divergence between rent levels in the private rented sector and housing welfare benefits’.  Baroness Hollis cited figures from the National Landlords Association showing that nine in 10 private landlords are reluctant to let their properties to people on benefit.  Read more on Inside Housing.

Poverty: Children – Parliamentary Written Answer

Chris Skidmore: To ask the Secretary of State for Work and Pensions what estimate he has made of the effect of (a) Universal Credit and (b) the Welfare Benefits Uprating Bill on child poverty.

Esther McVey (edited response): In the autumn statement (2012), it was announced that in light of the national economic situation, certain working-age social security benefits and payments, certain elements of tax credits, and child benefit, would be uprated by 1% rather than by prices (as measured by the consumer prices index ('CPI')) for the tax years 2013-14, 2014-15 and 2015-16. Because the relative poverty income line moves each year in cash terms some families will move below this line over the period.  We estimate that the uprating measures in 2013-14, 2014-15 and 2015-16 will result in around an extra 200,000 children being deemed by this measure to be in relative income poverty compared to uprating benefits by CPI.

Welfare Bill Capping Benefits Out

The Welfare Uprating Bill - legislation to cap increases in benefits - is due to be introduced to the House of Commons today (20 December), amid conflicting media reports about the popularity of the plan.  The bill will cap the rate at which most working age benefits will rise in order to save £3.7 billion. Increases in local housing allowance rates, which are used to calculate housing benefit for private renters, will be capped at 1 per cent for two years from April 2014, effectively cutting benefit in real terms.  Labour has indicated it is likely to oppose the bill. Chancellor George Osborne announced the plans in the autumn statement earlier this month.  Read more on Inside Housing.