The Department for Work and Pensions has made no assessment of the number of families set to fall into the ‘benefits trap’ set by Reeves’ lifting of the two-child benefit cap. Labour has been accused of creating a “welfare trap” with the move…
Families are subject to a Household Benefit Cap, which limits the total monthly income families can receive from benefits (with exceptions). There is a limit of £1,835 outside of London. Analysis shows that 20% of families set to gain from Reeves’ two-child benefit will now push themselves to the Household cap. Providing two options: start working or start claiming more disability or incapacity benefits, exempt from the cap…
Asked by Shadow Work and Pensions Secretary Helen Whately whether Labour knew how many claimants it predicts will do what, DWP minister Stephen Timms admitted: “No assessment has been made.” The Treasury hasn’t made a calculation either. Labour has a habit of turning a blind eye to the actual impact of its budget policies…
UPDATE: Helen Whately, Shadow Work and Pensions Secretary, said:
“Little does Labour know, their Budget has created a huge incentive for families to escape the Household Benefit Cap. Any exemption could be seen as a golden ticket to much higher incomes, so getting one becomes a rational choice for hard pressed families. Once again, the Government is expecting hard-working families to subsidise those who make different choices. This is not right.”
Speaking to Sky News off the back of Rachel Reeves’ Air Passenger Duty hike, Ryanair chief executive Michael O’Leary said:
“Labour is dependent on those Red Wall seats, and yet every move she makes poisons economic growth and damages the UK’s recovery… it’s the Chancellor who stumbles from policy misstep to policy misstep… I think her policy decisions are incredibly stupid.”