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by Munro Research

Benefit Cap (Report on Abolition) Bill


Official Summary

Require the Secretary of State to report to Parliament on the likely effects of the abolition of the benefit cap, including on levels of absolute and relative poverty, poor mental health, food bank use, borrowing of money from friends and family, evictions from homes and problem debt, and on different groups including women, lone parents and people from Black and minority ethnic backgrounds; and for connected purposes.

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Overview

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

Description

The Benefit Cap (Report on Abolition) Bill requires the UK government to create a report evaluating the likely effects of abolishing the existing benefit cap. This report must examine several key areas:

  • Impact on Poverty: Assessment of the potential changes in absolute and relative poverty levels.
  • Mental Health: Evaluation of the potential impact on the prevalence of poor mental health.
  • Social Indicators: Analysis of the potential effects on food bank usage, borrowing from friends and family, evictions, and problem debt.
  • Disaggregated Analysis: A specific analysis of the effects on women, lone parents, and people from Black and minority ethnic backgrounds.

The report is mandated to be submitted to Parliament in 2023. The "benefit cap" refers to the existing limitations on welfare benefits, as defined in the Welfare Reform Act 2012.

Government Spending

The bill itself does not directly allocate or change government spending. Instead, it mandates a report that will inform future policy decisions which *could* lead to increased or decreased spending, depending on the report's findings and subsequent government action.

Groups Affected

The bill's effects will be felt broadly, but specific groups are highlighted for targeted analysis:

  • People currently subject to the benefit cap: These individuals could experience improved financial circumstances if the cap is abolished.
  • Women: The report will specifically examine the impact on women.
  • Lone parents: The report will specifically examine the impact on lone parents.
  • Black and minority ethnic backgrounds: The report will specifically examine the impact on individuals from Black and minority ethnic backgrounds.
  • UK Government: The government will be affected by the findings of the report and will need to consider its implications for future policy and budgeting.
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