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Benefit Cap

Household Benefit Cap

The Government introduced a new cap on benefits within the London areas of Bromley, Croydon, Enfield and Haringey on 15th April 2013. For all other Local Authorities across the country the DWP will move from implementation in the first four Local Authority areas to national rollout over the summer and as such all households identified as being appropriate to be capped will, in line with existing plans, have been capped by the end of September 2013. We have been advised that the national roll out will commence on 15th July 2013. 

The benefit cap means that people should not get more in benefit payments than the average wage paid to people in work.

A maximum of £350 a week if you're a single person and either:

  • you have no children
  • the children you have responsibility for don't live with you

A maximum of £500 a week if you're either:

  • a couple, with or without dependant children
  • a lone parent with dependant children

There will be a grace period whereby the benefit cap will not be applied for 39 weeks to those who have been in work continuously for the previous 12 months and who lose their job through no fault of their own.

Exemptions

The following households will be exempt from the cap:

Those entitled to Working Tax Credit

Those in receipt of:

1. Disability Living Allowance

2. Personal Independence Payments (from April 2013)

3. Attendance Allowance

4. The support component of ESA

5. Industrial Injuries benefit

6. War Widows and War Widowers pension

For More information and to use the benefit cap calculator please visit the Direct Gov website at www.gov.uk/benefitcap.