The Benefit Cap is the limit on the total amount of income from certain benefits a household can receive. If you receive more than the Benefit Cap allows then your Housing Benefit or Universal Credit will be reduced until you are brought back within the cap.
From 7th November 2016 the following cap has applied:
- If you are a couple or have children and live outside Greater London, the maximum amount of benefits you can receive before being affected by the Benefit Cap will be £20,000 a year, or £384.62 a week
- If you are a single person and live outside Greater London, the maximum amount of benefits you will receive before being affected by the Benefit Cap will be £13,400 a year, or £257.69 a week
Regulations also exclude those entitled to Carers Allowance, the Carer Element in Universal Credit, and those in receipt of Guardian's Allowance.
The benefits included when seeing if your benefit income exceeds the cap are:
- Child Benefit
- Child Tax Credit
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker's Allowance
- Employment and Support Allowance (except when in the support group)
- Maternity Allowance
- Severe Disablement Allowance
- Widowed Parent's Allowance & Bereavement Allowance
What can you do if you are affected?
- Consider increasing your hours or getting a job
- Declare any undeclared carers or household members with disabilities within the household or anyone else in the household claiming working tax credits to your Housing Benefit department