Capped and trapped (in the UK's

We simulate iii the effect of possible social security reforms and find that the removal of the benefit cap is the only reform to have a significant effect on the living standards of these families. [...] Where the LHA for a three-bedroom property is lower than the maximum rent in the table above, the LHA rate applies; otherwise, the benefit cap figure in the table above applies. [...] In the findings below, we explore the geographic variation in this maximum entitlement, by calculating the difference between the LHA rate maximum entitlement and the benefit cap maximum entitlement - to show the geographically-varying effect of the benefit cap over and above the LHA cap. [...] We summarise the effect of these reforms by presenting the average poverty depth and average destitution risk across the whole of Great Britain for the same number of lone parent three child families as in the rest of our analysis (though noting that the reforms above would affect the number of capped families). [...] Notably, in October 2023 we saw some movement by the UK government in re-pegging LHA rates to the 30th percentile of rents, in part in recognition of the extent of the housing crisis and the problem of affordability for low-income households.