This means that households claiming out of work benefits will no longer receive more in benefits than the average wage paid to those who are working.
If you have been working continuously for 12 months and lose your job through no fault of your own, you will have a 39 week period in which the cap will not be applied.
Total benefit payable will be limited to a maximum of £500 each week for couples and lone parents and £350 for single people, though entitlement to certain other benefits may exempt you from the household benefit cap.
Local authorities will be responsible for applying the household benefit cap to new and existing claims from April 2013, through housing benefit deductions. This means that we will work out your Housing Benefit or LHA but then deduct the amount of money you in excess of the cap by.
All households expected to be affected by the benefit cap will be written to by the DWP.
These benefits all count when working out if you are affected by the benefit cap:
The cap won’t apply to you if you, your partner or any children you are responsible for, qualify for Working Tax Credit or have been awarded any of the following:
The Government have provided an on-line calculator for you to use and this can be found here.
If you are unaware of your current awards or you want to find out more about this change you can phone the DWP on help line 0845 6057064, those with hearing or speech impairments can use the textphone 0845 6088551. The help line is open from 8.00am to 6.00pm.
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