The benefit cap

Between April and September 2023 the government will be introducing a cap on the total amount of benefit that working age people can receive.

This will mean that workless households should no longer receive more in benefits than the average earnings of working households.

Here are the answers to help you find out if you will be affected by the benefit cap:

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What will the changes mean?
The cap will be introduced between April and September 2023 and will apply to the combined income from the main out-of-work benefits, plus Housing Benefit, Child Benefit and Child Tax Credit.

The cap will be:

  • £500 per week for couples and lone parents
  • £350 per week for single adults.

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Who will not be affected by the benefit cap?

The cap will not affact you if you are:

  • entitled to Working Tax Credit
  • if you are receiving:
    • Disability Living Allowance
    • Personal Independence Payment (from April 2023)
    • Attendance allowance
    • the support component of ESA
    • Industrial Injuries Benefits (and equivalent war disablement pensions and payments under the Armed Forces Compensation Scheme)
    • War widows or widowers pension.

Claimants who have been in employment for 52 weeks or more when they claim benefit will be exempt from the cap for a grace period of up to 39 weeks.

Claimants will not be capped where someone in the household (claimant, partner or any children they are responsible for and who live with them):

  • obtains work and becomes entitled to Working Tax Credit;
  • receives one of the benefits that exempt recipients from the cap.

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What should I do now?
If you will be affected by the benefit cap, you should think about whether or not you will still be able to afford your rent.

Here are some things you can do:

  • Look at finding work or increasing your hours.
  • Save money from somewhere else and work out a budget plan with the assistance of our Welfare Reform Team.
  • Apply to the Discretionary Housing Payment Fund. Contact Lambeth Council for more information.

We can help you…
Lambeth Council is working with the Department for Work and Pensions (DWP) to identify those who may be affected by the benefit cap.

They will contact you if they think your benefit will be reduced.

We can help you

For information or advice about changes to benefits contact our Welfare Reform team:

Call: 020 7926 3895 or 020 7926 1939

Email: Citenquiries@lambethliving.org.uk

In person: Central Income Team, The Springfield Centre, Second floor, 110 Union Road, SW8 2SH