Benefit Cap
What steps he is taking to ensure that people affected by the benefit cap are not in poverty.
Being in work is the best way to avoid poverty. The benefit cap gives a modest but significant incentive to start work and then to progress in work. Some people cannot work, so the cap does not apply to people out of work on disability or caring benefits, but for others it remains in place.
The abolition of the two child limit by this Government was a key step in cutting child poverty, but some of the poorest families still see their benefit capped, and there are shockingly high levels of child poverty in parts of my constituency, with 70% of children in Arundel ward and 61% of those in Princes Park ward growing up in poverty. The cap hits families with high needs: two thirds are single parent families, more than half of whom had a child under five and over a quarter had a child under two. They are often forced to turn to food banks to survive as a result. The Trussell Trust provided 1,300 food parcels to children in Liverpool Wavertree last year. Will the Government build on the abolition of the two child limit and review the benefit cap to ensure that families with very young children are protected from poverty?
We will certainly keep the policy under review, but at the moment too many people are in poverty through being out of work, and the cap does help by increasing the incentive to work. My hon. Friend is right to highlight the scrapping of the two child limit—2 million children will gain overall from that. There are 50,000 capped households who will not see a gain, but a large number will. One other point I should make is that childcare support within universal credit is not affected by the cap, so that is of further help.
The House of Commons Library, quoting the Joseph Rowntree Foundation, reports that child poverty rates in Scotland are much lower than in England, at 23% compared with 31%, due at least in part to the Scottish child payment. In the light of this Government’s mission to tackle the scourge of child poverty, can the Minister describe what measures the Government are planning, in addition to the abolition of the two child cap—for example, scrapping the infamous bedroom tax?
The hon. Member is right that the scrapping of the two child limit is the key measure and will lead to 450,000 children moving out of poverty. Other measures in our child poverty strategy that we published last year will increase that number by another 100,000. That is going to be very welcome progress in Scotland as well as in the rest of the UK, and we will be keeping policies under review.
I call the shadow Secretary of State.
Well, there we heard it a moment ago: a Labour Back Bencher calling for yet more money to be spent on benefits. What we should be doing is talking about all the households who are avoiding the cap, when 100,000 households get over—
Shame on you!
Order. We have to be very careful with our language, especially when you are on the panel of Chairs.
Some 100,000 households get over £50,000 in benefits, and 16,000 households get over £60,000 in benefits. That gives them the same income as the top 10% of earners in this country. British people are sick and tired of footing the bill for “Benefits Street” and seeing welfare claimants living lives of luxury at their expense. The right hon. Member for Makerfield (Andy Burnham) has called for more collaborative politics, so will the Minister adopt our plan to toughen up the benefits cap and save £1 billion off the benefits bill?
If there is a plan, I would be very interested to see it. We certainly have not seen any details of it. The hon. Member’s comments are a further example of her expressing dissatisfaction with the system left behind by her Government after 14 years. We are reforming the system and making sure it is doing the job we need it to do, and we will carry on with that programme of reform.
Question 4, Mr Speaker.
It is question 5.