Welfare Reform Bill Clause 94 Briefing

By:   Published: January 2012


We support the principle of a Universal Credit and recognise the need for reform of the benefit system. However, clause 94 of the Welfare Reform Bill, which introduces a new cap on the maximum amount of benefits households can claim, undermines many of the principles of the proposed Universal Credit.

Summary

We are promoting amendments to:

  • Exempt homeless households in temporary accommodation (TA) from the cap (amendment 61)
  • Allow all households a 26 week grace period before the cap is imposed (amendment 60)

We are also supportive of amendment 59 which would exempt child benefit from the calculation of the cap, as this would reduce its disproportionate impact on children and mitigate the harm to the fight against child poverty.

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