October 2016 Lower Benefit Cap from November

02/10/2016

New regulations have been issued in relation to the introduction of a lower benefit cap from 7 November 2016.

The benefit cap is a limit on the total amount of income from certain benefits a household can receive. If a household receives more than the benefit cap allows then their Housing Benefit or Universal Credit is reduced until they are brought back within the cap.

For couples or those who have children the benefit cap is currently £500 per week. The limit for single people with no children is £350 per week.

From 7th November 2016 the benefit cap is going to be reduced and will be set at a different level depending on whether someone lives inside or outside London.

 

£442.31 a week if you are a couple or have children and live in London

£384.62 a week if you are a couple or have children and live outside London

£296.35 a week if you are a single person and live in London

£257.69 a week if you are a single person and live outside London

 

Two new exemptions are introduced so that the benefit cap does not apply where the claimant, the claimants partner or a young person for whom the claimant or the claimants partner is responsible, is entitled to carers allowance or guardians allowance.

The DWP has issued new information to local authorities in relation to the process by which housing benefit and universal credit claims will be reassessed.

The DWP advises that for claims newly affected by the introduction of the lower benefit cap the DWP will undertake a manual check of benefit awards and exemptions. This is expected to be completed during a 12 week period commencing from the 7 November 2016 and completing by the end of January 2017. All universal credit claimants are to be reassessed by the end of January 2017.

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