11 December 2023 , 09:55
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Tens of thousands of benefit claimants, including those who get Universal Credit, risk having their payments cut next year.
This is because the benefit cap, which is a limit on the total amount households can claim, is not being raised next April. At the same time, benefit payments are set to rise by 6.7% - pushing more people above the benefit cap threshold.
Alison Garnham, chief executive of Child Poverty Action Group (CPAG), told The Sun that 85,000 households already have their benefit payments cut because of the cap. She said: “Sadly the number of affected families will grow as more people are newly capped when benefits are uprated as usual next April. The losses for capped families are huge - averaging £53 a week but sometimes much more.”
The benefit cap depends on where you live, if you have children, and if you’re in a couple, or claiming as a single person. The benefit cap is set at the following rates if you’re outside of London:
- If you’re in a couple - £423.46 (week) £1,835 (month)
- If you’re a single parent and your children live with you - £423.46 (week) £1,835 (month)
- If you’re a single adult - £283.71 (week) £1,229.42 (month)
If you live inside greater London, the benefit cap is set at the following rates:
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- If you’re in a couple - £486.98 (week) £2,110.25 (month)
- If you’re a single parent and your children live with you - £486.98 (week) £2,110.25 (month)
- If you’re a single adult - £326.26 (week) £1,413.92 (month)
The benefit cap may affect you if you're under state pension age and you receive one of the following payments:
Universal Credit
Bereavement Allowance
Child Benefit
Child Tax Credit
Employment and Support Allowance
Housing Benefit
Incapacity Benefit
Income Support
Jobseeker’s Allowance
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Maternity Allowance
Severe Disablement Allowance
Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before April 9, 2001)
You’re not affected by the cap if you or your partner:
- Are claiming Working Tax Credit even if the amount you get is £0
- Are claiming Universal Credit because of a disability or health condition that stops you from working
- Are claiming Universal Credit because you care for someone with a disability
- Are claiming Universal Credit and you and your partner earn £722 or more a month combined, after tax and National Insurance contributions
You’re also not affected by the cap if you, your partner or any children under 18 living with you gets:
- Adult Disability Payment (ADP)
- Armed Forces Compensation Scheme
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Disability Living Allowance (DLA)
- Employment and Support Allowance (if you get the support component)
- Guardian’s Allowance
- Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
- Personal Independence Payment (PIP)
- War pensions
- War Widow’s or War Widower’s Pension
Some people are awarded a nine-month grace period from the benefit cap, depending on your earnings. You can read more about that on GOV.UK.