Housing benefit and council tax support

The Benefit Cap was first implemented in April 2013 and stipulated that working age customers that had certain amounts of benefit income would have their benefit capped dependent on their circumstances.

How much is the cap?

 If a customer is in receipt of Housing Benefit the Cap is:

• £500 a week for single parents with children and couples with children
• £350 a week for single people

 The cap applies to all benefits that are included in the calculation.

What benefits are included in the cap?

• Income support
• Jobseekers allowance
• Employment and support allowance (unless in a supported agreement)
• Incapacity benefit
• Child benefit and child tax credits
• Guardians allowance
• Carers allowance
• Maternity benefits and widows benefits paid by the Department for Work & Pensions
• Severe disablement allowance
• Universal Credit 
• Housing Benefit (unless in they live in supported accommodation)

What is not included in the cap

• discretionary housing payment
• council tax support/reduction
• budgeting loan/advances
• one-off council crisis payments
• free school meals child maintenance payments
• winter fuel payments
• statutory sick pay
• Housing benefit for supported accommodation. This usually includes domestic violence refugees and accommodation where tenants also get care or support.     

In addition carers allowance and guardians allowance won't be affected where previously they were.

On Monday 7 November 2016 new legislation was passed with changes made of which placed further restrictions to the benefit cap and will depend on where you live.

Outside Greater London

If you live outside the area the cap will be:

• £384.62 per week (£20,000 a year) if you're in a couple, whether your children live with you or not
• £384.62 per week (£20,000 a year) if you're single and your children live with you
• £257.69 per week (£13,400 a year) if you're single and you don't have children, or your children don't live with you

Inside Greater London

If you live in a Greater London borough, the cap will be:

• £296.35 per week (£15,410 a year) if you're single and you don't have children, or your children don't live with you
• £442.31 per week (£23,000 a year) if you're in a couple, whether your children live with you or not
• £442.31 per week (£23,000 a year) if you're single and your children live with you

To calculate your benefit cap online

This legislation is available from Statutory Instrument 2012/1994 The Benefit Cap (Housing Benefit) Regulations 2012, Statutory Instrument 2013/54, 2016/909, The Benefit Cap (Housing Benefit) (Amendment) Regulations 2013 and 2016.