Benefits Cap Will Hurt Larger Families, Report Says

Larger families will face financial shortfalls under government plans to cap benefits, according to research. A study by Cambridge University academics has said that market-pegged social rents are particularly unaffordable for families with three or more children, and that in some areas a family on benefits would fall foul of the £26,000 benefit cap if renting at 80 per cent of market rate. Under the government’s affordable rent regime developers can charge up to 80 per cent of market rent on new homes built through the Homes and Communities Agency-funded scheme. The research, commissioned by 56,000-home housing association Affinity Sutton, suggests a couple with three or more children would breach the benefit caps in four out of five local authority areas it examined. Download a copy of the report from the Affinity Sutton website.