Department for Work and Pensions Benefit Cap factsheet

Background

The cap will be introduced from April 2013 and will apply to the combined income from the main out-of-work benefits, plus Housing Benefit, Child Benefit and Child Tax Credit.

The cap will be:

• £500 per week for couples and lone parents;

• £350 per week for single adults.

Exemptions

The following households will be exempt from the cap:

Those entitled to:

• Working Tax Credit.

Those in receipt of:

• Disability Living Allowance;

• Personal Independence Payment (from April 2013);

• Attendance Allowance;

• The support component of Employment and Support Allowance;

• Industrial Injuries Benefits (and equivalent war disablement pensions and payments under the Armed Forces Compensation Scheme);

• War Widows and War Widowers pension.

Claimants who have been in employment for 52 weeks or more when they claim benefit will be exempt from the cap for a grace period of up to 39 weeks.

Where the Benefit Cap would not apply

Claimants will not be capped where someone in the household (claimant, partner or any children they are responsible for and who live with them):

• obtains work and becomes entitled to Working Tax Credit;

• receives one of the benefits that exempt recipients from the cap.

People could also:

• move to cheaper accommodation or negotiate a rent reduction to one which is more affordable.

Delivery phases

• Phase 1 — from April 2012, Jobcentre Plus and Local Authorities will be providing support to those households claiming out-of-work benefits that will be impacted by the Benefit Cap in April 2013

• Phase 2 — 15 April 2013, implementation of the Benefit Cap for new and existing claimants, via a deduction from Housing Benefit, in four local authority areas, Bromley, Croydon, Enfield and Haringey. The remaining local authorities will implement the cap from the summer of 2013 (date to be confirmed).

• Phase 3 — New claims to Universal Credit (UC) will be subject to the cap from October 2013.