Benefit Cap

 What is the benefit cap?

The benefit cap is the limit on the total amount in benefits that most working-age people can claim.

It is a limit that is set by Government.

If you are affected by the benefit cap it means that the money you have coming in will be reduced. Your housing benefit will be reduced and you will need to make up the shortfall in your rent. Your universal credit will be reduced so that you don't get more than the benefit cap limit.

Who will be affected?

 If you are in receipt of income from the following benefits you will be affected by the cap:

• Universal Credit (UC)
• Housing benefit (unless you live in supported housing)
• Income support (IS)
• Jobseeker's allowance (JSA)
• Employment and support allowance (ESA) (unless you are in the support group)
• Child benefit  
• Child tax credits
• Maternity benefits and bereavement benefits paid by the Department for Work and Pensions
• Severe disablement allowance

Could you be exempt from the cap?

If you receive any of the following benefits you may not be affected by the benefit cap:

• DLA/PIP (Under 65)
• Attendance Allowance (Over 65)
• ESA support group
• Industrial Injuries Benefit
• You are a pensioner or receive War Widows’ pension
• Working Tax credits
• Carers allowance - if you are receiving this for someone, even if they don't live in your household
• Guardians allowance
• Carers elements of Universal Credit

Existing claimants of Carer’s Allowance/ Carers Element of UC or Guardians Allowance should have the cap removed from them from 7/11/2016

What are the amounts involved?

From 7 November 2016 the amount capped will depend on where you live in the UK.

Inside Greater London

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

• £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
• £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

If you are affected by the cap then you will need to change your spending habits. Please speak to our Customer Service Team on 0300 131 7300 or e-mail isha@isha.co.uk if you want further advice on this.