What is the Benefit Cap?
The government introduced a Benefit Cap in April 2013, which was rolled out nationally in July 2013. The overall amount of benefit you can claim is now “capped” which means that a limit is now put on the total amount of benefit most people age 16 – 64 can get. The government says the scheme will mean people are better off in work than on benefits.
What are the new rules?
The Government now adds up how much money you get from benefits, including housing benefit, jobseeker’s allowance, employment support allowance, child benefit, child tax credit and carer’s allowance.
If the total adds up to more than the maximum, any extra will not be paid.
If you get Housing Benefit, it is important to include this in your calculations. It can be easy to forget about Housing Benefit if it is paid direct to bpha but the amount will still be included in the benefit calculations.