Changes to the Benefit Cap

The Benefit Cap is a limit on the total amount you can be paid in certain working age benefits. The capped amount is due to be reduced from 7th November 2016 and the DWP will notify anyone likely to be affected by post during October.

If you live outside a Greater London borough, the cap will be:

  • £384.62 per week (£20,000 a year) if you’re in a couple, whether your children live with you or not
  • £384.62 per week (£20,000 a year) if you’re single and your children live with you
  • £257.69 per week (£13,400 a year) if you’re single and you don’t have children, or your children don’t live with you

If you live in a Greater London borough, the cap will be:

  • £442.31 per week (£23,000 a year) if you’re in a couple, whether your children live with you or not
  • £442.31 per week (£23,000 a year) if you’re single and your children live with you
  • £296.35 per week (£15,410 a year) if you’re single and you don’t have children, or your children don’t live with you.

benefitcap
You are exempt from the cap, if:

  • Anyone in your household qualifies for Working Tax Credit.
  • You are over the qualifying age for Pension Credit. You do not need to be in receipt of Pension Credit.
  • You are part of a couple and one of you is over the qualifying age for Pension Credit and the other is not. However, if you’re claiming Housing Benefit and one of you gets Income Support, income-based Jobseekers Allowance or income-related Employment and Support Allowance, you will not be exempt.

…Anyone in your household get’s any of the following benefits:

  • 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)
  • Personal Independence Payment (PIP)
  • Universal Credit payment for ‘limited capability for work and work-related activity’
  • War pensions
  • War Widow’s or War Widower’s Pension
  • Carer’s Allowance
  • 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. • You are entitled to one of the benefits above but don’t get it because you are living in a care home or as an in-patient in hospital.
  • If you have been employed for at least 50 of the previous 52 weeks, you will be exempt for up to 39 weeks after your job ended.