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Benefit Cap and Effect on Housing Benefit

Benefit Cap and Effect on Housing Benefit

As from 7th November 2016 for benefit claimants aged 16-64 years old, the government will reduce the Benefit Cap to:-

• £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 your income is higher than the Benefit Cap then your Housing Benefit/housing costs will reduce to the Benefit Cap amount which will mean that you will require to pay monies towards your rent.

You’re not affected by the Cap if anyone in your household qualifies for Working Tax Credit or gets any of the following benefits:
• Armed Forces Compensation Scheme or Armed Forces Independence Payment
• Attendance Allowance or Disability Living Allowance (DLA) or Personal Independence Payment (PIP)
• 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’
• War pensions or War Widow’s or War Widower’s Pension

The DWP will be posting letters to claimants that may be affected by the Benefit Cap changes. The letters will be posted out from 19 – 29th September 2016.