The benefit cap

Example one:

A family has a weekly income from benefits of £453.46, including £100 housing benefit. Their benefit cap amount is £423.46 per week, so their income is £30 per week over the limit. Their housing benefit reduces by £30 (from £100 to £70) to bring their total income down to the £423.46 limit. They have £30 more rent to pay and will need to use £30 from their other benefits for this.

Example two:

A single person has a weekly income from benefits of £363.71, including £70 housing benefit. Their benefit cap amount is £283.71 per week, so their income is £80 per week over the limit. But rather than their housing benefit stopping altogether, it reduces to a nominal rate of £0.50 per week. They have £69.50 more rent to pay and will need to use £69.50 from their other benefits for this.

Last updated: ‎29/04/2024 12:04