A two-child benefit cap introduced in April 2017 blocked parents from claiming universal credit or tax credit for their third child. The decision to scrap the limit announced today will benefit 1,188 of Lambeth’s most financially vulnerable households, including 4,252 children.
It is estimated the move with provide an extra £15million for the hardest pressed households in Lambeth.
The approval for an overnight levy brings London into line with major cities around the world, and is welcomed in Lambeth where the majority of hotel and short-let stays in Airbnbs and other accomodation are by overseas visitors.
Cllr Claire Holland, the Leader of Lambeth Council, said: “The two-child cap was a cruel measure introduced by the last government that disadvantaged the poorest families in our community. We estimate today’s announcement is worth an average £3,500 per eligible child in Lambeth.
“This will make a very real difference in their lives, and as a council committed to equity and justice we agree that this was the right thing to do.
“We also welcome the Government’s decision to back our calls for an overnight accommodation levy to re-invest in the local area and support growth and investment projects in Lambeth and across London.
“We have been talking with business groups in the borough who back this small charge for overnight visitors and feel it could provide a real boost to the area, funding work to make it even more attractive and appealing.
“New York, Tokyo, Paris and many other global cities have an equivalent scheme and providing the powers for local areas to do this is a key part of the government’s agenda to give more power to local communities
“Lambeth is cultural powerhouse for the capital, with world-famous attractions in areas like the South Bank and Brixton in particular drawing huge numbers of overseas visitors.
“We do think it’s important that the levy applies to all visitor accommodation, not just hotels, and that Lambeth and other councils are able to retain a fair share so that business and residents can directly benefit.”
Lambeth Council had adopted a motion on October 15 this year calling on the Government to introduce the now agreed overnight levy. It committed the council to work with the London Mayor, other boroughs and Lambeth’s business improvement districts to advocate for and implement a fair and effective levy.
Cllr Holland said: “We will also be looking at the proposal for a high value property surcharge carefully, and will continue to make the case that revenues raised locally are retained locally.”
