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Click here for an online calculator for the new Benefit Cap. The cap is expected to affect those with benefits(not including Council Tax Benefit) of at least £350 a week for single people or £500 a week for lone parents or couples. They will lose any benefit above these levels.

The Benefit Cap is due to be introduced from April 2013(sections 96 & 97 of the Welfare Reform Act) for new and existing claimants of working age(under Pension Credit age)  It is a politically popular means of restricting the total benefits that a household can receive to estimated average earnings of either a single household or a couple household. 

67,000 households will be affected by the cap in 2013/14 (75,000 in 2014/15).  The average benefit reduction is £83 a week per household.

It won't apply where someone in the household gets one of the following-

  • Working Tax Credit
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Industrial Injuries Benefits
  • Employment Support Allowance, if paid with the support component
  • War Widow's or War Widower's pension.

People who have been in employment for 52 weeks or more when they claim benefit, who lost their job through no fault of their own, may be exempt from the cap for up to 9 months.

Please post your comments/ queries on our discussion forum.

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