Will your benefits be reduced this month?
If you're due to be effected by the Benefit Cap it's likely that both the Department of Work and Pensions and Herefordshire Council will have notified you. The Government is making a reduction to the amount of benefits that some working-age households can receive from 28 November 2016. This is known as a Benefit Cap. The Government decide if your benefit should be capped by adding up all the money received from a range of benefits. Some working age families, in receipt of benefits, will find that their income is capped to £385 per week. We expect that this will mainly affect families with 3 or more children. If your benefits are capped, the amount of Housing Benefit you will receive will be reduced so that your overall benefit income is £385 per week. It will be your responsibility to pay any top up towards rent.
The graph below shows how the income of a family with 3 children would be affected:
In the example above, the household income is £445 per week. Once the cap is introduced, the amount of benefit above the red line will be cut. The Housing Benefit will be reduced by £60 per week so that the total income is £385. The family would therefore need to start paying £60 per week towards their rent.
Benefits included in the cap
Jobseekers Allowance (JSA)
Employment and Support Allowance (ESA), excluding the support group
Severe Disablement Allowance
Child Tax Credit
Bereavement Allowance/ Widowed Parent’s Allowance
If anyone in your household receives one of the following benefits, no cap will be applied
Disability Living Allowance/ Personal Independence Payments
Industrial Injuries Benefit
ESA support component
War widows/War widowers pension
Working Tax Credit
Carer’s Allowance/ Guardian’s Allowance
The cap is only applied to people of working age. There is no cap if you are of pensionable age.
What can you do next?
Our team of Tenancy Sustainment Advisors are here to help;
- They can guide you through budgeting and also checking if you could be entitled to additional benefits.
- Budgeting can help you see where savings could be made or where expenses might be in the future. You can download a Budget Plan here.