Lone parents and their children lose Supreme Court challenge against DWP's controversial benefit cap

Lone parents and their children have lost a Supreme Court challenge against the government’s controversial benefit cap.

Lawyers argued that the cap had “drastically” reduced housing benefits, leaving many families unable to afford basic life necessities to care for their children.

They said that lone parents should be exempted because of the difficulty they had finding work compatible with their childcare responsibilities.

But a panel of judges rejected their appeals in cases brought against the Department for Work and Pensions (DWP) over the lawfulness of the measure by a majority of five to two.

Announcing the decision, Lord Wilson described the legislation which introduced the revised cap as “tough”.

He said the court had been faced with a “difficult” decision on the appeals.

“The cap has had a major impact on lone parents with children under school age because it is particularly difficult for them to go out to work,” he added.

But in concluding that the appeals “must fail”, Lord Wilson said that the majority considered they could not go so far as to say that “this application of the cap is manifestly without foundation”.

The case was brought by six lone parents and their children to challenge a decision by the Court of Appeal case brought by the DWP in March 2018 which ruled that there was “no discriminatory impact”.

The appeal by the parents had been in response to a High Court ruling in 2017 which found that the benefit cap, which limits the income households receive in certain benefits, unlawfully discriminated against single parents with very young children.

Campaigners said the “discriminatory” reduced cap was “structurally flawed” and was pushing families who can’t work deeper into poverty.

Responding to the latest ruling, Frank Field, chair of the Work and Pensions Committee, said: “Just as we thought the persistence with this policy could not become any more shocking, the government has kept on fighting a ruling from the highest court in the land which found that it cannot possibly be in the best interests of children affected by the cap, to deprive their family of the means to cover the basic necessities of life.”

The Work and Pensions Select Committee recently found that eight in 10 households affected by the benefit cap could not work – often due to being single parents with young children or suffering with illness or disability – and should therefore be exempt.

The Welfare Reform and Work Act 2016 provides that where families receive state benefits of a specified character of more than £23,000 a year if living in London, or £20,000 a year elsewhere, the benefits should – subject to various ways of escaping from it – be capped at those levels.

One way of escaping the cap is for the adults to go out to work – a lone parent must do so for 16 hours a week.

Housing charity Shelter said the ruling was “deeply disappointing” and “a blow to the many lone parents who are struggling to keep a roof over their children’s heads due to the benefit cap”.

Polly Neate, the charity’s chief executive, added: “Some families we work with are left with 50p a week towards their rent. The court heard extensive evidence that the cap is not meeting the government’s intended aims and is, in fact, causing severe hardship and destitution for families. It repeatedly drives people further from work and instead pushes them onto hard-pressed council homelessness services. We urge the government to listen to these voices and end this cruel and self-defeating policy.”

Child Poverty Action Group (CPAG), which represented two of the lone parents, echoed this response, saying it was upholding a law and a policy that was “increasing poverty while failing to deliver on its principal aim of work incentivisation”.

According to the charity, just 5 per cent of capped households are more likely to move into work because of the cap – with the large majority not otherwise being required to work because of young children or an illness or disability.

CPAG’s head of strategic litigation said: “There are very real and practical reasons, recognised by the court, as to why such a lone parent struggles to find sufficient work to escape the cap. Yet, while failing to achieve its aim of getting such lone parents into work because of those wider obstacles they face, the cap, in the words of the court, ‘push[es] a family well below the poverty line.’

“We continue to believe that the cap is structurally flawed and that pushing families who can’t work deeper into poverty is totally unacceptable.”

A DWP spokesperson said: “We welcome the Supreme Court’s decision. The benefit cap provides a clear incentive to work, including part time, as anyone can become exempt by moving into work or increasing their hours.

“We are committed to helping parents into employment that fits around their child caring responsibilities and there are a near record number of lone parents in work.

“There are exemptions to the cap in place for those who cannot work such as disabled people and those with health conditions.”