Liz Truss has been called on to scrap the “truly catastrophic” benefit cap that has will leave claimants an average £65 a week worse off.
Child poverty campaigners have called on the new Prime Minister to reverse the cap as part of her response to the cost of living crisis.
Households whose benefits are capped will be left on average £65 a week worse off from April, according to analysis for the Child Action Poverty Group (CPAG).
Around 4,000 of the 120,000 households whose benefits are already capped are in Scotland and will not see any rise when benefits are increased in line with the current inflation rate.
The cap limits the total amount of benefits low-earning and non-working households can receive to £384.62 a week for families outside London with some exceptions.
This is the same level as 2016 and has not increased to reflect the rising cost of living.
Over the summer, then Work and Pensions secretary Therese Coffey hinted that the cap may be reviewed before next April.
John Dickie, of Child Poverty Action Group Scotland, said removing the cap would would be “invaluable” in the current economic climate.
He said: “The cost of living crisis exposes just how vulnerable the arbitrary benefit cap leaves children."
"This cruel and irrational benefit cap needs to be scrapped at source by the UK government as a matter of utmost urgency. It can’t be right that children are being driven into even deeper poverty when government should be supporting families.”
He added: “Parents affected generally have no control over housing costs and are in no position to increase their hours of work because of their caring responsibilities. The new Prime Minister has a chance now to show families she is on their side, scrap the cap and ensure all children benefit from inflation linked benefit increases in April.”
It would cost £500 million to remove the cap, just 0.2 per cent of total spending on social security, according to the Child Poverty Action Group.
The new chancellor Kwasi Kwarteng is due to hold a mini-budget next week but with the emphasis on tax cuts and delivering a winter energy package.
In Scotland people affected by the benefit cap can apply for a discretionary housing payment from their local authority.
Dickie said: " There is no guarantee that all households will get this support. The Scottish government has committed to work with local authorities to mitigate the UK benefit cap ‘as fully as we can’
He added: “Here in Scotland there is an urgent need for the Scottish government to press ahead with its commitment to mitigate the cap, work with councils and put in place the guidance, resources and accountability needed to ensure as few children as possible in Scotland suffer from the policy.”
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