Benefit Cap - Blaby District Council

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Benefit Cap

A limit, known as the Benefit Cap,  was introduced in 2013 that affects working age people who are claiming benefits. The government introduced the benefit cap to ensure that workless households no longer receive more in benefits than the average working family, after tax and national insurance. Therefore, if a workless household receives more in benefits than the government says that they should, their housing benefit has been reduced or 'capped'.

If your benefit has been capped you may have to use money from your other benefits to pay some or all of your rent. In the future, the benefit cap will form part of the new universal credit system.

The benefit cap applies to the combined income of:

  • Bereavement Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance (unless you receive the ‘support’ component)
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widows Pension if you started getting it before 9 April 2001)
  • Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)

If you are in receipt of any of the following benefits the benefit cap will not apply to your household:

  • Armed Forces Compensation Scheme
  • Armed forces Independence payment
  • Attendance Allowance
  • Carer’s Allowance
  • Disability Allowance
  • Employment and Support Allowance (if you get the ‘support’ component)
  • Guardians Allowance
  • Industrial Injuries Benefits 
  • Personal Independence Payments
  • Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)
  • War Pensions (including War Widow’s/Widower’s Pension)

If you have adult children or non-dependants living with you and they qualify for any of these benefits, you may be affected by the cap. This is because they’re not usually included in your household.

How much is the benefit cap? 

These figures are effective from 7 November 2016:

  • £384.62 per week for couples and couples with children
  • £384.62 per week for single parents whose children live with them
  • £257.69 per week for single adults who do not have children, or whose children do not live with them

The amount of housing benefit that you receive each week will be reduced to the cap amount. If you don't receive enough housing benefit to have it reduced to the cap amount then you will be paid a nominal amount of 50 pence each week.

You can use the benefit cap calculator to find out how the benefit cap will affect you. 

Examples of those currently affected by the benefit cap

Contact

Benefits Team   
Blaby District Council   
Council Offices   
Desford Road   
Narborough   
Leicester   
LE19 2EP

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E-Mail:
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Telephone:
0116 272 7510
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Fax:
0116 272 7591
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Minicom:
0116 284 9786
Last updated: 20 March 2017

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