The Government will add up how much money you get from a range of benefits including housing benefit and if the total comes to more than the maximum amount allowed your housing benefit payments will be reduced to bring the total income in line with the applicable cap.
How will this affect me?
If your benefits are capped this will mean you may have to pay more towards your rent than you do currently. This is a really important change because if you get behind with your rent you may risk losing your home.
The cap will not apply if you, or your partner or any children you are responsible for, and who live with you, are entitled to working tax credit or receive any of the following
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP) (from April 2013)
- Attendance Allowance
- Industrial Injuries Disablement Benefit (IIDB)
- Employment and Support Allowance (ESA), if paid with the support component
- War Pension scheme payments / Armed Forces compensation scheme payments
There will be a period where the cap will not be applied for 39 weeks for those who have been continuously in work for the previous 12 months.
The cap will apply to the combined income from:
- Bereavement Allowance / Widowed Parent’s/Mother’s Allowance
- Carer’s Allowance
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance (ESA) (contribution-based and income-related except where the Support Component has been awarded)
- Guardian’s Allowance
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker’s Allowance (contribution-based and income-based)
- Maternity Allowance
- Severe Disablement Allowance (SDA)
- Widow’s Pension
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