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The Household Benefit Cap (HBC) is changing

Published 4 October 2016

In April 2013, the government introduced a maximum limit on the total amount of benefit a household can get each week. This is called the Household Benefit Cap. It was initially set at £26,000 per year for families, couples and lone parents and £18,200 for single people.

From autumn 2016 it will be reduced to £20,000 a year for families, couples and lone parents and £13,400 for single people living outside London.

On a weekly basis this is:

  • £384.62 a week, for families, couples and lone parents; or
  • £257.69 a week, for single people.

The benefits included in the cap and exemptions can be found here. If your household receives more in benefit than the cap for your family type, your housing benefit or universal credit housing costs element will be reduced accordingly.

If this affects you then you should have already received a letter from the Department of Work and Pensions, outlining how much your housing benefit or universal credit housing costs element will reduce by. If you have concerns about how you will manage your money under the lowered cap then our Cash Wise team can help. For budgeting support, help to maximize your income or to get in touch with the team visit www.getcashwise.co.uk or call 01977 724651.

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