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Benefits Cap New Changes and Rates – 2017

Updated 13th April 2017

The Benefits Cap is a limit to how much you can receive when on benefits. This will mean that the benefits payable cannot exceed the given amounts below. It applies mainly to those who are of working age. (16 to 64 years old).

The total sum of Welfare benefits that can be claimed for most benefits will be capped at a certain sum for some claimants – there are a few benefits which will be excluded from the Benefits Cap. From 2017 the top rate of the cap is….

If you are living in the Greater London Area maximum benefits will now be £442.31 per week for those living in the Greater London Area. This works out at £23,000 a year.  Before November it used to be £500.00 per week or £26,000 a year.

If you are living outside the Greater London area, the maximum benefits you can receive under the Benefits Cap system will now be £384.62 per week. This works out at £20,000 per annum.  

The examples above are MAXIMUM rates you will be paid under the total benefits cap system. For some – depending upon different circumstances – it will be less than the maximum.

For many - there will be no actual change as far as Benefit Capping is concerned, though of course there may be changes to other benefits you receive, as the whole system is gradually overhauled.

The people most likely to be affected by this Benefits Cap, are those with large families, living in large houses, and in relatively expensive areas. 

This is because Housing benefit is also included in the total for capping purposes. Whereas before 2013, they were entitled to substantial payments re housing benefits and other payments, families in particular will now be subjected to the Benefits Cap limit of £442.31 per week.

The Total Benefits Cap in the Greater London Area for a family with children will now be £442.31 per week.  For many, it may mean being re-housed in a less expensive area as far as rents are concerned!

How much is the Benefit Cap going to be.

Depending upon whether or not you come into the Benefits Cap system - see below - The highest levels of the cap are set at......

Benefits cap for those Living in Greater London

This may mean the amount you get for certain benefits will go down to make sure that the total amount you get isn’t more than the cap level.

Benefits Cap for those Living outside Greater London

Who will Be affected by the Benefits Cap

Benefits which are included for This cap on benefits. You will only be affected by the benefits cap, if you are receiving Benefits as listed below

The Benefits Cap will affect most people of working age. Working age is deemed to be between 16 and 64 years old.

Who Will Not Be Affected?

You will not normally be affected by the benefit cap if anyone in your household qualifies for Working Tax Credit or gets any of the following benefits:

But Be AWARE THAT - You might be affected by the Benefits Cap if you still have any grown-up children living with you who qualify for one of these benefits. The reason for this is that, for this Benefit Cap, they will not count as being normally part of your household. 

March 9th 2017
***Child Tax Credit - From April this year the ‘family element’ of £545 per year will be abolished.***

March 8th 2017
**MPs are calling for a halt to the accelerating roll-out of Universal Credit as the ongoing problems are causing undue and unnecessary hardship**

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