Benefit Cap

What is the Benefit Cap?

The Benefit Cap is a limit on the total amount of benefits you can receive if you are of working age. The cap limits non-working households to a maximum of £384.62 per week or £257.69 per week for single claimants, and is reduced from Housing Benefit in the first instance. For Universal Credit claimants, the cap is £1,666.67pm for couples and families and £1,116.67 for a single person. There are exemptions for some people with disabilities, and specialist advice should be sought if you think this may apply to you.

If you receive more than the maximum amount allowed, your Housing Benefit or Universal Credit will be reduced.

You can use this benefit cap calculator from DirectGov to get an estimate of how much your Housing Benefit or Universal Credit could be reduced by if you exceed the level of the benefit cap.

When claiming Universal Credit, there is a nine month grace period from the benefit cap in some cases. Further information on how and when the cap will apply to you can be found here.  

Please contact us for more information and support if you would like any support to claim.

Resident receives a helping hand from our Financial Inclusion team

Help, support, advice, guidance generic image

Thanks to our  Financial Inclusion team, a resident is no longer worrying about her finances.

Regenda Homes resident, Sally*, was struggling with her finances after the Benefit Cap reduced her weekly Housing Benefit to just 50p.

With five children to care for and rent arrears of over £300, Sally was fearing the worst, and believed she was at risk of losing her home. 

Sue, a Regenda Homes Financial Support Officer, became aware of Sally's situation and contacted her to see if she could help. During a short meeting at Sally's home, the pair talked through her benefit entitlement and assessed her finances.

After discovering one of Sally's children has ADHD, Sue helped Sally fill in the necessary forms to claim Disability Allowance, something Sally was unaware she could claim.

The local council accepted the forms and backdates Sally's Housing Benefit, she received over £1,000 which helped pay off her rent arrears.

Sally now receives Housing Benefit of £106 per week, covering all of her rent. She also receives an extra £140 per week which she didn't know she was entitled to.

Thanks to our  Financial InclusionTeam, Sally no longer has rent arrears and is now exempt from the Benefit Cap. She is back to being a happy, worry-free resident. Her rent is paid in full and on time, and she has the financial support to help care for her children.

If you are struggling to manage your finances, please contact our Financial Inclusion Team who are more than happy to help. 

*Sally is a fictional name to protect the resident's identity.