Benefit cap leaves poor families with mounting debt

Key welfare reform disproportionately affects ill or disabled people

A key government welfare reform designed to motivate people into work is leaving families with mounting debt and pushing poor children into deeper poverty, according to analysis seen by the Observer.

Two-thirds of the households stuck in the government’s benefit cap for more than six months were found to be facing a shortfall between their monthly income and estimated costs, suggesting the policy is fuelling destitution.