The Welfare Reform Act 2012 has been highly controversial. While the broad thrust of Universal Credit has been welcomed – simplifying a complicated benefits system and easing the transition into work – many of the specifics of the new benefit, particularly in relation to Housing Benefit, have received a lot of criticism. It is worth noting the concerns that have been raised by numerous organisations about some of the proposed changes.

The proposal to impose a benefit cap has been criticised in particular for its failure to take account of household size. It is calculated on the basis of the average wage of in-work households, criticised as a “crude measure” by the Citizens Advice Bureau for failing to take into account household size, household circumstances, or variations in housing cost. It has been suggested that child benefit should not be included in the cap, which effectively denies the benefit to children in families who have already reached the £500 limit. Moreover, the cap could force the migration of families to cheaper locations – concerns about creating a Paris-style ‘doughnut’ in London, with a jammy rich centre surrounded by poor ghettos, are an example of this. There is also concern that the cap could cause overcrowding in cheaper but smaller properties.