Benefit Cap

7 Nov 2016

Who does it apply to?

You’re not affected by the cap if you or your partner work, and either of the following apply:

  • You or your partner are eligible for Working Tax Credit
  • You or your partner get Universal Credit, and your household income is more than £430 a month after tax and National Insurance

 

Here is a list of the benefits that are included in the cap:

  • Bereavement allowance
  • Carer's allowance
  • Child benefit
  • Child tax credit
  • Employment and support allowance (except for the support group)
  • Guardian's allowance
  • Housing Benefit
  • Incapacity benefit
  • Income support
  • Jobseeker's allowance
  • Maternity allowance
  • Severe disablement allowance
  • Universal credit
  • Widowed parent's allowance
  • Widowed mother's allowance

 

However, if you receive any of the following, you WILL NOT be affected by the cap:

  • Working tax credits
  • Disability benefits
  • Armed forces compensation scheme payments
  • Armed forces independence payment
  • Attendance allowance
  • Disability living allowance
  • Employment and support allowance
  • Industrial injuries disablement benefit
  • Limited capacity for work related activity element of universal credit
  • Personal independence payment
  • War disablement pension
  • War widow's or widower's pension

You will get a certain grace period from the cap if you've been employed for at least 50 weeks out of the 52 weeks leading up to your last day of work. If this is the case, you'll be exempt from the cap for up to 39 weeks from the day after your job ended.

 

What is changing and when?

The changes to the benefit cap were announced last year and will come into effect Monday 7th November 2016.

The new rate is £20k per year which works out as £384.62 a week for couples and families OUTSIDE Greater London. For single people without children living with them, the cap is £13.4 k per year, £257.69 per week. If you live INSIDE Greater London the cap is £23k per year, £442.31 per week. For single people living inside of Greater London the cap is £15.4k per year, £296.35 a week. You can find out more here (https://www.citizensadvice.org.uk/benefits/the-benefit-cap/the-benefit-cap-what-you-need-to-know/#how-much-is-the-cap)

 

Who will be affected and where?

The most affected areas are predicted to be London and the South East where rents are highest.

If you are concerned about how these changes might affect you, please seek advice from a benefits adviser. Click here for help on finding out where your nearest adviser is. Turn2us (https://benefits-calculator.turn2us.org.uk/AboutYou)

 

*You can find out more here:

https://www.gov.uk/benefit-cap/overview

https://www.gov.uk/benefit-cap/benefits-included-in-the-cap