Welfare Reform Changes April 2013

Benefit Cap

The benefit cap is part of the Welfare Reform Act 2012.

From April 2013, a cap will be introduced on the total amount of benefit that working age people can receive. This will mean that those receiving benefits should no longer receive more in benefits than the average earnings of working households.

This is not due to affect residents in Hyndburn from April but is expected to take affect later in the year and the Department for Work and Pensions will write to you if you are to be affected.

The benefit cap is being tested in four London boroughs initially and the cap will be £500 per week for families and lone parents and £350 per week for single people.

In the first instance, the cap will be administered jointly by Department for Work and Pensions and local authorities through deductions from Housing Benefit payments. In the longer term, it will form part of the new Universal Credit system.

Further information about the cap can be found on the Government’s Information Gateway – details include which benefits are included in the cap and what to expect if you are affected.