The Benefit Cap - what you need to know
From November 2016 the total amount of benefits you can claim is reducing. The benefits that will be capped are Housing Benefit or Universal Credit.
If you are affected consider one of the following:
Making a claim for PIP, or DLA / PIP for a child.
If on ESA in the Work Related Activity Group, take advice/ask for a review to be put in the Support Group.
If you are working, check to see if you meet the criteria for Working Tax Credit.
Even if your receive a nil award, entitlement to Working Tax Credit exempts you from the cap.
To claim Working Tax Credit:
- You must be 16 or over to qualify.
- You must be 25 or over if you don’t have children or you don’t have a disability.
You must work the following
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Aged 25 to 59 |
at least 30 hours |
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Aged 60 or over |
at least 16 hours |
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Disabled |
at least 16 hours |
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Single with 1 or more children |
at least 16 hours |
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Couple with 1 or more children |
at least 24 hours between you (with 1 of you working at least 16 hours) |
You can claim if you work less than 24 hours a week between you and one of the following applies:
- you work at least 16 hours a week and you’re disabled or aged 60 or above
- you work at least 16 hours a week and your partner is incapacitated (getting certain benefits because of disability or ill health), is entitled to Carer’s Allowance, or is in hospital or prison.
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Included |
Excluded from the cap if someone in the household … |
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Receives Working Tax Credits or who work enough hours to claim Working Tax Credits. (Even if awarded a nil entitlement, have to have made a claim though). |
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Has been employed continuously for 12 months and they then lose their job. Cap won’t apply for first 39 weeks of your claim. |
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Of working age |
Of pension credit age (HB needs 1 person at pension credit age / UC needs both people at pension credit age.) |
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Included benefits |
Excluded from the cap if anyone in the household claims one of the following benefits… |
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Housing benefit (unless in supported housing) |
Housing benefit for supported accommodation |
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Income support |
DLA or PIP (you/partner or child) |
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JSA |
Attendance allowance |
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ESA |
ESA - Support component (gets paid, not credits only) |
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Incapacity benefit |
Industrial injuries benefits |
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Child benefit |
War widows/widowers pension |
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Child tax credits |
War Disablement Pension |
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Guardian’s allowance |
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Carers allowance |
Carers allowance (Lord Freud commented on this but no date yet) |
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Maternity benefits paid by DWP |
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Widows benefits paid by DWP |
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Severe disablement allowance |
Benefits not included in the benefit cap total |
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DHPs |
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Council tax support / reduction |
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Budgeting loan / advances |
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One off council crisis payments |
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Free school meals |
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Child maintenance payments |
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Winter fuel payments |
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Statutory maternity, paternity, adoption pay |
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Statutory sick pay |
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Universal Credit (even if one at pension credit age) |
Claiming UC – if you have an in-work exemption |