Benefit Cap

Benefit cap - what is it?

(will you be affected? - use the simple calculator below)

The benefit cap will affect people aged 16 to 64, also known as 'working age'. The cap means that a household where no one is in work should not get more in benefits than the average wage paid to people in work.

By household we mean you, your partner if you have one and any children you are responsible for and who live with you.

Castle Point Borough Council receives information by the DWP of the customers who will be affected by the Benefit Cap. Castle Point Borough Council will contact customers to explain the steps taken and help them through the process.

Why is the benefit cap being introduced?

The benefit cap will make sure that households getting benefits will not normally get more in benefit than the average working household receives in pay.

The benefit cap will encourage people to look for work and help to promote fairness between those in work and those getting benefits.

What's included in the benefit cap?


When added together the benefit cap will limit the total income you can get from the following benefits:

  • Bereavement Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance (except where it is paid with the support component)
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker's Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parent's Allowance
  • Widowed Mothers Allowance
  • Widows Pension
  • Widows Pension Age-Related

How much is the benefit cap?

A maximum of £257.69 per week (£13,400 a year) a week if you're a single person and either:

  • you have no children
  • the children you have responsibility for don’t live with you

A maximum of £384.62 per week (£20,000 a year) if you're either:

  • a couple, with or without dependant children
  • a lone parent with dependant children

The cap will not apply if you qualify for Working Tax Credit or get any of the following benefits:

  • Disability Living Allowance
  • Personal Independence Payment (from April 2013)
  • Attendance Allowance
  • Industrial Injuries Benefits
  • Employment and Support Allowance, if paid with the support component
  • War Widow's or War Widower's Pension

The cap will be applied through deductions from Housing Benefit payments.

Calculator

Find out how you are affected by using our welfare reform calculator.

The calculator tells you whether you are impacted by the welfare reform and the benefit cap.

welfare reform calculator

Contact Us

If you are concerned about your situation and how these changes may impact on you please complete the electronic form below and a member of the team will contact you to discuss your situation, and if necessary make an appointment for an interview at our offices.

Benefit Reform Advice e-form