The Benefit Cap

What is it?

The benefit cap [pdf] 544KB is a limit applied to the benefits of working aged customers. It applies to single people, couples and families alike. The limit or cap is currently £500 per week for a person with children or £350 if you are single. But in the recent budget this cap will be lowered to £384 for couples and families and £257 for single people.

We believe this cap will be phased in from November 2016.

How it works…

The benefit cap only applies if you are getting Housing Benefit or Universal Credit.

A couple with 3 children receive £427 a week, of which £95 is Housing Benefit.

The benefit cap for a couple is £384. 

They receive £43 more in benefits than the cap. This is deducted from their Housing Benefit.

The amount of Housing Benefit they get is cut to £52 so they need to pay £43 themselves towards their rent.

Advice

We can look at training and work opportunities with you so that you get tax credits (or Universal Credit) and then the cap will not apply.

When won’t the cap affect me?

The benefit cap won’t apply if either you or your partner get any of the following benefits:

  • Disability Living Allowance (DLA)
  • Personal Independence Payment (PIP)
  • Armed Forces Independence Payment (AFIP)
  • Attendance Allowance
  • The support component of Employment and Support Allowance
  • Industrial Injuries Benefit and equivalent payments as part of a War Disablement Pension or Armed Forces Compensation Scheme
  • War Widow's or Widower's Pension.

You will also be exempt from the benefit cap if a child or young person for whom you are responsible gets DLA, PIP or AFIP.

And you will not be affected if you work enough hours to get Working Tax Credit or if you or your partner are working and earning £430+ net per month for your universal credit claim.

Please download a copy of our benefit cap leaflet [pdf] 544KB.