Changes to the Benefit Cap
MUIR is urging people who will be affected by forthcoming changes to The Benefit Cap to contact the Association’s Money Advisors for help.
The Benefit Cap was introduced by the Government in 2013 to limit the maximum amount of benefit a household can receive.
It applies to the amount of benefit most people aged 16 to 64 can get each week.
Currently set at £500 for two parent families and single parents, and 350 for single person households, this will be reduced from November 7th, 2016, when Government changes come into effect. *
Wayne Pearson, a member of Muir’s Money Advice team said: “The changes could see some recipients struggle to manage their money, pay their rent, or household bills.
“We can help and work with residents to sustain their tenancy.
“I would encourage any Muir resident who think they will be affected by the Benefit Cap changes to get in touch.”
Two parent and single parent families will see The Benefit Cap reduce to £385 per week, while for single person households, the changes will see their benefits reduced to £258.
If you think you will be affected, or are unsure, contact Muir Group Housing Association’s Money Advice Team on 0300 123 1222 as soon as possible.
(A full list of benefits that the cap applies to can be found below).
For more information and to access a range of Frequently Asked Questions visit: www.gov.uk/government/uploads/system/uploads/attachment_data/file/245747/benefit-cap-faqs.pdf or see our informative videos at the bottom of this page.
The cap applies to the total amount that the people in your household get from the following benefits:
- Bereavement Allowance
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance (unless you get the support component
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker’s Allowance
- Maternity Allowance
- Severe Disablement Allowance
- Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)
- Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widows Pension you started getting before 9 April 2001)
You might still be affected by the cap if you have any grown-up children or non-dependants who live with you and they qualify for one of the benefits below.
This is because they won’t normally count as part of your household.
You’re not affected by the benefit cap if anyone in your household qualifies for Working Tax Credit or gets any of the following benefits:
- Disability Living Allowance
- Personal Independence Payment
- Carer's Allowance
- Guardian's Allowance
- Attendance Allowance
- Industrial Injuries Benefits (and equivalent payments as part of a war disablement pension or the Armed Forces Compensation Scheme)
- Employment and Support Allowance, if you get the support component
- War Widow’s or War Widower’s Pension
- War pensions
- Armed Forces Compensation Scheme
- Armed Forces Independence Payment
When do the changes come into effect?
By how much will the Benefit Cap be reducing by?
Will the changes affect me? (Please note that since this video was made, Carer's Allowance and Guardian's Allowance have been made exempt from the changes)
Will my Housing Benefit be affected by the changes?
How do I know if I am not going to be affected by the Benefit Cap changes? (Please note that since this video was made, Carer's Allowance and Guardian's Allowance have also been made exempt from the changes)
Where can I go for help understanding this?
What might happen if I don't act?
You can contact Muir Group Housing Association’s Money Advice Team for help on 0300 123 1222.
*(For people living in London, two parent and single parent families will receive a maximum of £442, while single person households will get £296 when the change comes in on November 7th, 2016).