Government cuts

Some of the poorest families in England are at risk from changes to the Social Fund for people in financial crisis, says a report from the Children's Society charity. Key parts of the Social Fund have now been devolved to local authorities: but researchers found that the money given to local authorities to replace the Fund is less than half of what used to be allocated to it. 

Over half a million more children will have been forced into poverty by 2015 as a result of the coalition government's public spending cuts and tax and benefit changes, according to a report from the official children's rights watchdog for England.

The report is based on an analysis, by Landman Economics, that uses microsimulation models to assess the likely impact on children living in different kinds of families – the first time, the watchdog says, this kind of analysis has been undertaken.

A woman who was threatened with the 'bedroom tax' on unoccupied rooms in social housing has committed suicide. Stephanie Bottrill, aged 53, died in the early hours of 4 May after being hit by a lorry on the motorway near her home in Solihull in the west midlands.

Mrs Bottrill left a note to her family saying: 'Don’t blame yourself for me ending my life. The only people to blame are the Government, no-one else'. Her family said she had been worried about how she would afford an extra £20 a week as a result of housing benefit cuts. She lived in a three-bedroom house on her own. Government changes mean families deemed to have more living space than they need are faced with having their housing benefit cut – the so-called 'bedroom tax'.

Mrs Bottrill's son told a local newspaper: 'She was fine before the bedroom tax. It was dreamt up in London, by people in offices and big houses. They have no idea the effect it has on people like my mum'.

Roll-out of the controversial cap on household benefit payments began in four London boroughs on 15 April 2013.

The cap means no household will be able to claim benefits totalling more than £500 each week, which the government says equates to average household earnings of £26,000 a year (net of tax and national insurance payments). Single people without children will be limited to £350 a week. The cap is expected to be fully operational nationally by September 2013.

A coalition press release said: 'the days of outrageous claims giving people incomes far above those of hard working families are over'. But commentators expressed fears the cap will have the sharpest effect on families with children and on people in areas (especially London) with high housing costs.