We are aware of which of our customers will be affected and how much their income will change.
If you are affected, we will be trying to contact you.
The Department of Work and Pensions has already identified customers that will be affected. These customers will either see a reduction in Housing Benefit or Universal Credit payments.
What is the benefit cap?
The Benefit Cap is a limit on the total amount of benefit you can get can get. It applies to most people aged 16 to 64 and affects the total amount your household can receive in benefits. By household, we mean benefits received by you, your partner and dependent children who live with you, are all included.
The overall benefit cap was reduced from 7 November 2016.
How much is the cap?
The total amount a household will be able to claim in benefits is:
- £384.62 a week
The total amount a single person will be able to claim in benefits is:
- £257.69 a week
You won't be affected by the cap
if anyone in your household qualifies for Working Tax Credit or gets any of the following benefits:
- Carer’s Allowance
- Personal Independence Payment (PIP)
- Guardian’s Allowance
- Armed Forces Compensation Scheme
- Armed Forces Independence Payment
- Attendance Allowance
- Disability Living Allowance (DLA)
- Employment and Support Allowance (if you get the support component)
- Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
- Universal Credit payment for ‘limited capability for work and work-related activity’. you are earning £430+ a month
- War pensions
- War Widow’s or War Widower’s Pension
Use the Gov.uk tax credit calculator to find out if you're eligible
Benefits included in the cap
- Bereavement Allowance
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance (unless you get the ‘support’ component)
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker’s Allowance
- Maternity Allowance
- Severe Disablement Allowance
- Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widows Pension if you started getting it before 9 April 2001)
- Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)
Benefits not included in the cap
- discretionary housing payments
- council tax support/reduction
- budgeting loan/advances
- one-off council crisis payments
- free school meals
- child maintenance payments
- winter fuel payments
- statutory maternity, paternity or adoption pay
- statutory sick pay
- housing benefit for supported accommodation. This usually includes domestic violence refuges and accommodation where tenants also get care or support
If you think you may be affected and want to know what to do next, please contact us.