The Government has introduced a capon the total amount of benefits that non-working claimants aged between 16 to 64 can receive. Applying to England, Scotland and Wales (the scheme does not yet cover Northern Ireland), couples will be ineligible for more than £500 a week, while single people face a £350 limit.
The cap applies to people on housing benefit, jobseekers’ allowance, child benefit, child tax credits and other key Government support. Claimaints who receive Disability Living Allowance – or its successor, Personal Independence Payment – will not be capped, and this is true of a few other benefits: for example, a widower’s pension.
The benefit cap was implemented from April 2013 in four London council areas. Between 15 July and the middle of August it is expected to be extended to all local authorities with 275 affected households or fewer, before moving on areas where larger numbers are affected. All appropriate households will be capped by the end September 2013.