Leaders condemn benefit cap plans

Councillor Abdul Jabbar

COMMUNITY leaders fear the government's new benefit cap will leave Oldhamers facing financial hardship.

The Children's Society has figures showing that 400 households in Oldham will lose out, affecting 1,110 children.

But Oldham Council says 700 residents could be hit: 520 households, 47 of which already have a cap on their benefits, and around 125 Universal Credit claimants. Eighteen of the households could lose up to £330 per week.

The new cap will be implemented in stages with the 47 existing capped households affected from November 14 and newly capped households affected from December 12.

The Department for Work and Pensions has written to affected residents directly to inform them of the changes and residents will also be reminded at their next Job Centre Plus appointment.

Strides

However, Oldham Council is concerned that some residents may still be unaware and could experience financial hardship, particularly with the changes coming so close to Christmas.

Councillor Abdul Jabbar, cabinet member for finance, said: "In Oldham we have made great strides through our Get Oldham Working team to tackle unemployment.

"We've created more than 3,750 employment opportunities in less than three years.

"However, there will always be people who, for whatever reason, will find themselves unemployed and this cap will leave more than 500 Oldham residents worse off.

"Another concern is how close this cap is to Christmas and that it comes at a time when temperatures are dropping. We do not want to see people falling into fuel poverty.

"I will be writing to the government to express my concern about the implementation of this cap."

All households which include someone entitled to Guardian's Allowance, Carer's Allowance or an award of Universal Credit which includes the carer's element, will be exempt from the cap.

Claimants affected by the benefit cap are allowed a 39-week "grace period" which provides protection for those with a consistent work history whose employment has ended or who have been forced to leave work due to a change in their circumstances.

The Children's Society says nationally the cap of £20,000 outside of London will take up to £17million per month from 88,000 of the UK's poorest households, which are home to about 244,000 children.

Because a significant proportion of many families' benefits currently go on housing costs there are fears that the new harsher cap could lead to more families being made homeless and forced to move away from their children's friends and schools.

The charity says there are already 3.9 million children living in poverty across Britain and the new cap is likely to cause that total to rise, putting children's health, well-being and mental health could at risk.

The average loss across all families affected will be £60 per week or £260 a month - the difference for many between just about managing and spiralling into problem debt or homelessness.

Rob Jackson, north area director at The Children's Society, said: "Given the prime minister's talk of making Britain a country that works for everyone, it is deeply disappointing that the government is pushing ahead with an ongoing agenda of cuts to financial support for children in low-income families. Making savings by cutting help for the poorest children is unnecessary and unfair.

Blunt

"This is a blunt instrument trying to solve a complex problem. The policy is targeted at workless adults, but the reality is that children are considerably more likely than adults to lose out and there is nothing fair about trying to balance the books on the backs of poor children.

"We fully support efforts to make work pay, but it is not right to achieve this by putting more children on the breadline. Even at this late stage we would urge ministers to exclude children's benefits from the cap so that children and their already struggling families do not suffer even more hardship."

For support, residents should contact the benefit cap helpline on 0345 605 7064. To find out more information about the cap visit https://www.gov.uk/benefit-cap.

Anyone struggling to heat their home ­- or fear they might when the benefit cap is introduced ­- can contact the Warm Homes Oldham scheme on 0800 019 1084 or via warmhomesoldham@keepmoat.com for help and advice.