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Benefit Cap reduction November 2016

Benefit Cap reduction November 2016

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

Until 7 November 2016, if you are a couple or have children your benefit cap is £500 per week. The limit for single people with no children is £350 per week.

From 7 November 2016 the benefit cap is going to be reduced and will be set at a different level depending on whether you live 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

When the reduced benefit cap is introduced, the benefits included when seeing if your benefit income exceeds the cap will be:

  • Child Benefit
  • Child Tax Credit
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker's Allowance
  • Employment and Support Allowance (except when in the support group)
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parent's Allowance & Bereavement Allowance

If you are affected by the reduction in the benefit cap your Housing Benefit or Universal Credit will be reduced. When this happens will depend on where you live as the roll out starts on 7th November but will take a number of weeks. See when it will be introduced in your area.

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