Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential merits of removing the benefit cap alongside the removal of the two child cap announced in the Budget Statement on 26 November 2025.

No assessment has been made

The benefit cap aims to incentivise work as, where possible, it is in the best interest of children to be in working households. Being in work substantially reduces the chance of poverty: the poverty rate of children living in households where all adults work is 17% compared to 65% for children who live in households where no adults work.

Returning to employment, or increasing the number of hours worked, significantly increases the likelihood of a household not being affected by the cap. People who are working and earning at least £846 each month are exempt from the benefit cap. There is also protection for the most vulnerable as those who are caring or are severely disabled are exempt from the benefit cap.

The Government is committed to helping people move into and progress in work and we are delivering a step-change in employment and skills support for parents, enabling parents to balance work and caring responsibilities through high quality, flexible jobs, and improving access to childcare so parents are better able to work.