Question to the Department for Work and Pensions:

To ask Her Majesty's Government what would be the level of the benefit cap, set in 2016, if it had kept pace with (1) inflation, (2) average earnings, and (3) Universal Credit rates.

There is a statutory duty to review the levels of the cap at least once in every five years and this will happen at the appropriate time. The current unusual economic period with potentially counter intuitive and shifting trends will need to be considered in the context of any decision regarding a review.

The benefit cap provides a strong work incentive and fairness for hard-working taxpaying households and encourages people to move into work, where possible. The Government firmly believes that where possible it is in the best interests of children to be in working households and the benefit cap provides a clear incentive to move into work.

The table below shows the weekly benefit cap level if it had kept pace with (1) inflation and (2) average earnings. To provide the levels of the benefit cap had it kept pace with Universal Credit rates is not readily available and to provide it would incur disproportionate costs.

The earnings and inflation measure used for uprating DWP benefits have been used.

Inflation and earnings source: House of Commons, Benefit Uprating 2022/23, Table 5 (February 2022).