Overview

This bill mandates the UK Secretary of State to produce a report to Parliament assessing the potential consequences of removing the benefit cap. The report must analyze the impact on various social indicators and specific demographics.

Description

This bill requires the Secretary of State to submit a report to Parliament evaluating the likely impacts of abolishing the benefit cap, a limit on the total amount of benefits a household can receive. The report must assess the potential effects on:

• Levels of absolute and relative poverty
• Poor mental health
• Food bank usage
• Borrowing from friends and family
• Evictions
• Problem debt

The report must also specifically examine the potential impact on:

• Women
• Lone parents
• People from Black and minority ethnic backgrounds

The report is required to be submitted to Parliament in 2023. The bill defines "benefit cap" as any cap established under section 96 of the Welfare Reform Act 2012.

Government Spending

The bill itself does not directly involve government spending. However, the abolition of the benefit cap, which the report will assess, would likely increase government expenditure on welfare benefits.

Groups Affected

The bill will affect various groups. The report will assess the impact on:

• Low-income households: Potentially positive impact through increased benefit payments if the cap is removed.
• Women, lone parents, and Black and minority ethnic groups: The bill requires a specific assessment of the effect on these groups, suggesting a potential disproportionate impact.
• Government finances: Increased expenditure is likely if the benefit cap is removed.
• Taxpayers: May see increased tax burden to fund increased welfare payments.

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