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The Benefits Cap

Posted on 16 April 2013

Benefit Cap, Pardoes Solicitor
A limit will be put on the total amount of benefit that most people aged 16 - 64 can get.  This is called a ‘benefit cap’.

The facts:

The cap will be set at the average (median) net earnings for a working household, currently projected to be £500 per week (£26k per annum) for couples and lone parents, and £350 per week for single people without children.

The following benefits are included in the cap:

Bereavement Allowance / Carer’s Allowance / Child Benefit / Child Tax Credit / Employment and Support Allowance (contribution-based and income-related) except where the Support Component has been awarded / Guardian’s Allowance / Housing Benefit / Incapacity Benefit / Income Support / Jobseeker’s Allowance (contribution-based and income-based) / Maternity Allowance / Severe Disablement Allowance / Universal Credit / Widowed Parent’s Allowance / Widow’s Benefit.

The benefit cap will be introduced from 15 April 2013 in four London boroughs Bromley, Croydon, Enfield and Haringey.

National roll out will begin on 15 July and will be completely implemented by September.

The cap will be calculated weekly until a claimant migrates to Universal Credit, between October 2013 and 2017, at which point the cap will be calculated monthly, as with their monthly Universal Credit payment. 

Property Disputes Solicitors

For further information on the above, contact either Sarah Doble or Laura Trott from our Property Litigation Team

Article written by Sarah Doble.

Posted in: News