Soaring numbers of Fife families hit by benefit cap revealed in new report

It comes as a joint briefing from Shelter, Women's Aid and the Child Poverty Action Group called for the cap to be abolished, saying it disproportionately affects children and survivors of domestic abuse, and is directly contributing to making families homeless.

Department for Work and Pensions figures show 221 households receiving Universal Credit in Fife had their income cut off by the policy in May.

This was a 53% increase since February, when 144 households had their income restricted.

The cap was last raised in April 2023, despite most benefits rising by 6.7% this April.

It currently stands at £22,020 for families with children across Britain, or £25,323 for those in London. Anyone due to receive more than this amount in benefits will have their income cut off.

Nationally, 118,000 households on Universal Credit had their income capped this quarter, an increase of 61%. Most of these households were families with children.

Matt Downie, chief executive of homelessness charity Crisis, called the increase "staggering".

"Behind these figures are struggling parents who will be spending anxious nights worrying about how they will put food on the table or keep a roof over their children’s heads," he said.

"While the amount low-income households receive to help pay their rent rose earlier this year, we know for thousands this vital support will have been completely wiped out by the impact of the cap. We cannot build a stable nation if we’re giving with one hand and taking with another."

The figures also show 67% of families capped in Fife were headed by one parent, more than in February, when it stood at 72%.

Polly Neate, chief executive of Shelter, called the cap "cruel and nonsensical", saying families often living in cramped temporary accommodation are trapped in homelessness and poverty.

She added: “Families are often crammed into a single room, sharing beds, while children have no space to play or do their homework, and the cap makes it impossible for them to move on to any affordable home. With a record number of children growing up homeless in temporary accommodation, if the Government is serious about tackling child poverty, it must take immediate action.

"The benefit cap must be scrapped so families can move on from damaging temporary accommodation into a settled home."

A government spokesperson said: "This is another example of the dire inheritance this Government faces – too many people are trapped on benefits.

“We are taking bold action to support people into work, through reforming job centres and giving local areas the power they need to tackle economic inactivity, which will boost their finances and reduce the likelihood of being impacted by the cap.

"We are committed to supporting low-income families and our ambitious strategy along with a £421 million extension to the Household Support Fund will ensure we can drive down poverty in every part of the country."