The government has introduced a cap on the total amount of benefit that working-age (ages 16 to 64) households can get so households on out-of-work benefits will no longer get more in welfare payments than the average weekly wage for working households.
This cap is £350 a week for single adults who don’t have children, or whose children don’t live with them, and £500 per week for a couple, with or without children, or a lone parent whose children live with them. If affected, a household’s Housing Benefit entitlement will be reduced so that the total amount of benefit received is no longer higher than the cap level.
The benefit cap applied from 15 April 2013 in Bromley, Croydon, Enfield and Haringey Local Authorities. Remaining Local Authorities will apply the cap between 15 July 2013 and the end of September. As such, all households identified as being appropriate to be capped will, in line with existing plans, have been capped by the end of September 2013.