Welfare Benefits Advice and Support

What is ‘The Benefit Cap?’
The benefit cap is a limit on the total amount of benefit you can get. It applies to most people aged 16 or over who have not reached State Pension age.

The benefit cap affects:

• Universal Credit
• Bereavement Allowance
• Child Benefit
• Child Tax Credit
• Employment and Support Allowance
• Housing Benefit
• Incapacity Benefit
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• Severe Disablement Allowance
• Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)

You might not be affected by the benefit cap if you get certain benefits or you’re over State Pension age. If you’re claiming Universal Credit, the benefit cap might not start for 9 months, depending on your earnings.

When the benefit cap affects your Universal Credit payments
The benefit cap might not affect your Universal Credit payments for up to 9 months. This is called the ‘grace period’.

You’ll get the grace period if all of the following are true:

• you’re claiming Universal Credit because you stopped working or your earnings went down
• you’re now earning less than £722 a month
• in each of the 12 months before your earnings went down or you stopped working, you earned the same as or more than the earnings threshold (this was £658 up to 10 April 2023 and is £722 from 12 April 2023)

Your partner’s earnings will be included when working out how much you earned even if they’re not claiming benefits. If you have separated from your partner, their earnings will be included for the time that you lived with them before you separated.

You need to report your last 12 months’ earnings when you apply for Universal Credit to get the grace period.

Benefit cap amounts
The amount you get through the benefit cap depends on whether:

• you’re single or in a couple
• your children live with you (if you’re single)

If you’re in a couple but you do not live together, you’ll get the amounts for a single person.

• If you’re in a couple £423.46 per week (£1,835 per month)
• If you’re a single parent and your children live with you £423.46 per week (£1,835 per month)
• If you’re a single adult £283.71 per week (£1,229.42 per month)

You will not be affected by the benefit cap if you or your partner get Universal Credit because you have a disability or health condition or because you care for someone with a disability or you earn £722 or more between you.

How the 9 month grace period works
If you’re already claiming Universal Credit, the grace period will start on the first day of the assessment period in which your earnings went below the earnings threshold. The threshold was £658 up to 10 April 2022 and is £722 from 11 April 2022.

If you’re making a new claim for Universal Credit, the grace period starts from either:

• the day after the last day you worked
• the payday when your earnings went below the earnings threshold (this was £658 up to 10 April 2023 and is £722 from 11 April 2023)

The 9 month grace period continues if you stop claiming Universal Credit and then start again.

After the 9 month grace period ends, the amount of Universal Credit you get will usually go down. It might not go down if your circumstances change and you are not affected by the benefit cap.

Help if you’re affected by the benefit cap
Contact the Department for Work and Pensions (DWP) if you’re affected by the benefit cap and you need help.

If you need help paying your rent or a rent deposit, contact your local council as well. They can check if you’re eligible for a discretionary housing payment (DHP) see below, which is not affected by the benefit cap.

If you get Universal Credit, you can contact DWP either:

• through their journal in your DWP online account
• by calling their Universal Credit helpline

If you get any other benefits:

• Benefit cap helpline if you do not get Universal Credit
• Telephone: 0800 169 0145
• Telephone (Welsh): 0800 169 0238
• Textphone: 0800 169 0314
• Relay UK (if you cannot hear or speak on the phone): 18001 then 0800 169 0145
• British Sign Language (BSL) video relay service if you’re on a computer – find out how to use the service on mobile or tablet
  Monday to Friday, 8am to 6pm (Find out here about their call charges)

When you’re not affected by the benefit cap
You’re not affected by the cap if you’re over State Pension age. If you’re part of a couple and one of you is under State Pension age, the cap may apply.

You’re not affected by the cap if you or your partner:

• get Working Tax Credit (even if the amount you get is £0)
• get Universal Credit because of a disability or health condition that stops you from working (this is called ‘limited capability for work and work-related activity’)
• get Universal Credit because you care for someone with a disability
• get Universal Credit and you and your partner earn £722 or more a month combined, after tax and National Insurance contributions

You’re also not affected by the cap if you, your partner or any children under 18 living with you gets:

• Adult Disability Payment (ADP)
• Armed Forces Compensation Scheme
• Armed Forces Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Child Disability Payment
• Disability Living Allowance (DLA)
• Employment and Support Allowance (if you get the support component)
• Guardian’s Allowance
• Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
• Personal Independence Payment (PIP)
• War pensions
• War Widow’s or War Widower’s Pension

If you are affected, the benefit cap might not start for 9 months, depending on your earnings.

Visit www.gov.uk/benefit-cap for more information.

Discretionary Housing Payments (DHPs) provide financial support to help with rent or housing costs.

Eligibility
You can apply for a DHP if you currently get either:

• Housing Benefit
• the housing element of Universal Credit and need more financial support with housing costs

What a DHP can cover
DHP funding is available in England and Wales and can help people with housing costs, including those affected by:

• the benefit cap
• removal of the spare room subsidy in the social rented sector
• Local Housing Allowance (LHA) rates

You may get a DHP to cover housing costs for:

• a rent shortfall
• rent deposits
• rent in advance if you need to move home

What a DHP cannot cover
DHPs cannot cover council tax, even if you get Local Council Tax Support.

Apply through your local council
Each council decides how their application process will work.

Your council will look at your circumstances to see whether you are eligible for a DHP. They will decide:

• whether to give you a DHP
• how much you will be paid
• how long you will receive the payment

Contact your local council to apply

Please note: DHP is a payment to help with short-term financial difficulties, it is not intended to be paid repeatedly or over a long period of time.  If your circumstances are unlikely to change you may want to consider downsizing to a smaller property.

Visit www.gov.uk for more information.

What are non-dependent deductions?

Non-dependants are normally classed as anyone living with you aged 18 or over, or 21 if you are on Universal Credit.

The Government makes the assumption that these adults will contribute towards your household costs, including rent and Council Tax.  They can therefore deduct a sum of money from your Housing Benefit or Universal Credit and Council Tax Support award, which is called a non-dependant deduction.

These deductions are generally based on the income the non-dependant receives and are applied regardless of whether or not they do actually give you any money for food, rent, electricity etc.

This person may, however, be classed as a lodger if they are not a close relative and they pay you on a formal basis to live in your home. Having a lodger will affect your Housing Benefit or Universal Credit payments differently.

The non-dependant deduction rules are complicated and the wrong deduction can sometimes be taken – making a big difference to your Housing Benefit or Universal Credit and Council Tax Support award.

The rules are also different depending on whether you are claiming Universal Credit or Housing Benefit. With Housing Benefit, the deductions are calculated based on earnings of the non-dependent, whereas with Universal Credit, the deductions are referred to as ‘housing costs contributions’ and a flat rate each month per non-dependent will be taken from your Universal Credit award.

There are some circumstances in which no deduction will be taken such as:

• If you or your partner are registered blind or getting the care component of Disability Living Allowance, the daily living component of Personal Independence Payments, Attendance allowance, or Armed Forces Independence Payment
• If the non-dependent is only staying with you temporarily
• If they are under 25 and on Income Based Job Seeker’s Allowance
• Under 25 and on Income Support
• On Pension Credit
• On Carer’s Allowance
• A prisoner, whether on remand or sentenced
• In the armed forces and away on operations

Contact your local council or DWP if you have a non-dependent living with you to ensure that you are not being over-billed. 

Pension Credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges.

Pension Credit is separate from your State Pension.

You can get Pension Credit even if you have other income, savings or own your own home.

If you get Pension Credit you can also get other help, such as:

• Housing Benefit if you rent the property you live in
• Cost of Living Payments
• Support for Mortgage Interest if you own the property you live in
• a Council Tax discount
• a free TV licence if you’re aged 75 or over
• help with NHS dental treatment, glasses and transport costs for hospital appointments, if you get a certain type of Pension Credit
• help with your heating costs through the Warm Home Discount Scheme
• a discount on the Royal Mail redirection service if you’re moving house

Visit www.gov.uk/pension-credit for more information or to make a claim.
OR visit the Gov website to check if you are eligible by using their Pension Credit Calculator.

Personal Independence Payment (PIP) can help with extra living costs if you have both:

• a long-term physical or mental health condition or disability
• difficulty doing certain everyday tasks or getting around because of your condition

You can get PIP even if you’re working, have savings or are getting most other benefits.

How PIP works
There are 2 parts to PIP:

• a daily living part – if you need help with everyday tasks
• a mobility part – if you need help with getting around

Whether you get one or both parts and how much you get depends on how difficult you find everyday tasks and getting around.

If you might have less than 12 months to live, you’ll automatically get the daily living part. Whether you get the mobility part depends on your needs. Find out how to claim and how much you’ll get if you might have 12 months or less to live.

Daily living part
You might get the daily living part of PIP if you need help with:

• preparing food
• eating and drinking
• managing your medicines or treatments
• washing and bathing
• using the toilet
• dressing and undressing
• reading
• managing your money
• socialising and being around other people
• talking, listening and understanding

Mobility part
You might get the mobility part of PIP if you need help with:

• working out a route and following it
• physically moving around
• leaving your home

You do not have to have a physical disability to get the mobility part. You might also be eligible if you have difficulty getting around because of a cognitive or mental health condition, like anxiety.

How difficulty with tasks is assessed
The Department for Work and Pensions (DWP) will assess how difficult you find daily living and mobility tasks. For each task they’ll look at:

• whether you can do it safely
• how long it takes you
• how often your condition affects this activity
• whether you need help to do it, from a person or using extra equipment

Your carer could get Carer’s Allowance if you have substantial caring needs.

Help with PIP
If you need help understanding or applying for PIP you can:

• watch PIP video guides with British Sign Language
• use easy read guides which explain PIP

Visit www.gov.uk/pip for more information or to make a claim.

Working Tax Credits

What are Working Tax Credits?

Working Tax Credit (WTC) is designed to top up your earnings if you work. There have been a number of changes to the rules for qualifying for WTC and they are summarised below.

To qualify, couples with children must have one person working at least 24 hours per week. If both partners are working then they will need to work at least 24 hours between them and one of them must be working at least 16 hours

Working Tax Credit is no longer available to people aged 50 or over who are returning to work for 16 hours or more after being on benefits for at least six months. To qualify they will need to work at least 30 hours per week whilst the extra allowance already paid to people over 50 working 30 hours will stop.

Claimants need to report changes of circumstance immediately as backdating requests have been reduced from three months to one month. Drops in income of up to £2,500 per annum will be ignored and if the drop is more than this then the first £2,500 will be ignored.

There have also been alterations to the rules relating to increases in household income. Prior to April 2016 if the household income increased by up to £5,000 during the tax year this increase was ignored when calculating the WTC entitlement for that year. However since April 2016 any increase in income of more than £2,500 will be taken into account when calculating the WTC entitlement.

As Working Tax Credits are one of the benefits that are being replaced by Universal Credit, if you have a change in circumstances, it is likely you will need to start a new claim for UC.  It is planned that by 2022, Working Tax Credits will be completely phased out in favour of Universal Credit.

Child Tax Credits

What are Child Tax Credits?

Child Tax Credit (CTC) is paid to help people with the costs of bringing up a child. There is no condition of being in work to qualify, although how much CTC is awarded is dependent on the household’s income and circumstances.

CTC is one of the six benefits that is being phased out and replaced by Universal Credit. This means that a person cannot claim tax credits and Universal Credit at the same time. If you are claiming CTC and you have a change in circumstances (such as a change in your income) you will be required to start a new claim for Universal Credit.

The Tax Credits helpline 0345 300 3900 assists with both new tax credits claims and allows existing claims to be updated.

Visit www.gov.uk/qualify-tax-credits for more information or to manage your tax credits.

In 2018, the Government introduced a two child limit into Housing Benefit, Child Tax Credit and Universal Credit. This does not affect entitlement to Child Benefit.

If you already have two or more dependent children in your family and you have a new baby, or you become responsible for another child, your Child Tax Credit or Universal Credit will only increase if that child is disabled and you get Disability Living Allowance for them and/or you have to pay for registered childcare for them, or if an ‘exception’ applies.

If you take on responsibility for a third, fourth, fifth etc. child and they were born after 6 April 2017, contact us for further advice.

Exceptions to the rules

There are some exceptions to the rules. In certain circumstances relating to multiple births, adoption, non-parental caring arrangements (e.g. kinship care and where a child was conceived as a result of non-consensual sex) extra money for a third, fourth, fifth etc. child could be included.

For example, if you have no dependent children but then gave birth to triplets, or if you already have one dependent child, then gave birth to twins you should receive extra Child Tax Credit, Housing Benefit for all those children. If you are an existing Universal Credit claimant, you will receive extra Universal Credit.

If you think an exception should apply, it will be up to the Tax Credit Office or Universal Credit Department to decide whether extra benefit can be paid for a third, fourth, fifth etc. child.

The Housing Benefit Office must follow the decision of the Tax Credit Office and, until the Housing Benefit Office has seen the Tax Credit award letter, they cannot include any extra child allowance for a third, fourth, fifth etc. child.

If you were already receiving Housing Benefit on 5 April 2017 and you had three or more children included in your Housing Benefit assessment, the Housing Benefit Office will continue to include these children in your award.

However, if you need to make a new claim for Housing Benefit or Universal Credit (e.g. if you move to a different local authority area) or you become responsible for another child, your Housing Benefit award can only include a maximum of two children (even if more than two of your children were born before 6 April 2017) until the Housing Benefit Office has seen your Child Tax Credit award.

So, unless you are getting Income Support, Income-Based Jobseeker’s Allowance or Income-Related Employment and Support Allowance (or Universal Credit and you are claiming Housing Benefit because you are living in specified accommodation), it is very important that you show the Housing Benefit Office your Tax Credit letter as soon as you receive it. If you delay, you could miss out on benefit.

As of 1 February 2019, anyone who makes a new claim for Universal Credit will only get a maximum of two child elements, unless any of the exceptions apply. There is, however, transitional protection for claimants who were already receiving child elements with an existing award for Universal Credit on 31 January 2019, or in a Child Tax Credit award in the previous 6 months. They will continue to receive child elements for the children who they were previously receiving elements or allowances for, until there is a break in the Universal Credit award or they are no longer responsible for the child.

Disability Living Allowance (DLA) for children may help with the extra costs of looking after a child who:

• is under 16
• has difficulties walking or needs much more looking after than a child of the same age who does not have a disability

They will need to meet all the eligibility requirements.

The DLA rate is between £26.90 and £172.50 a week and depends on the level of help the child needs.

Visit www.gov.uk/disability-living-allowance-children for more information or to make a claim.

Disability Living Allowance (DLA) is being replaced by other benefits.

If you already get DLA, your claim might end. You’ll get a letter telling you when this will happen and how you can apply for PIP or Adult Disability Payment.

You can only apply for DLA if you’re under 16 and you live in England or Wales.

If you’re over 16, you cannot apply for DLA.

You can apply for:

• Personal Independence Payment (PIP) if you have not reached State Pension age
• Adult Disability Payment if you live in Scotland and have not reached State Pension age
• Attendance Allowance if you’re State Pension age or older and do not get DLA.

Visit www.gov.uk/dla-disability-living-allowance-benefit for more information or to make a claim.

Attendance Allowance helps with extra costs if you have a disability severe enough that you need someone to help look after you.

It’s paid at 2 different rates and how much you get depends on the level of care that you need because of your disability.

You could get £68.10 or £101.75 a week to help with personal support if you’re both:

• physically or mentally disabled
• State Pension age or older

It does not cover mobility needs.

You could get extra Pension Credit, Housing Benefit or Council Tax Reduction if you get Attendance Allowance.

You do not have to have someone caring for you in order to claim.

If you do have a carer, they could get Carer’s Allowance if you have substantial caring needs.

Visit www.gov.uk/attendance-allowance for more information or to make a claim.

What is “Bedroom Tax “?

The “Bedroom Tax” is the name given to benefit changes introduced in 2013 for social housing residents, which mean that the amount of Housing Benefit or Universal Credit you get might be reduced if you have more bedrooms than the government deems necessary.

If you (or you and your partner) are Pension Credit age and receiving Housing Benefit to help you pay your rent, then you will not be affected by the Bedroom Tax.

Your Housing Benefit, or the help included in your Universal Credit to help you pay your rent, will be reduced by an amount equal to 14% of your rent if you are regarded as having one ‘extra’ bedroom; or by 25% of your rent if you have two or more ‘extra’ bedrooms.

The bedroom tax doesn’t affect everybody. You won’t need to pay any more rent for having ‘too many’ bedrooms:

• If you (or you and your husband, wife or partner) are Pension Credit age or over and receiving Housing Benefit
• If you live in a ‘shared ownership’ property
• If you have been placed in a certain type of ‘temporary accommodation’
• If you live in a particular type of supported housing called ‘exempt accommodation’ – ask us if you’re not sure
• If your Housing Benefit has already been reduced because of a Rent Officer referral

Use our Welfare Benefit calculator to ensure that you are receiving the correct benefits.

How many bedrooms am I allowed?

The basic rules are that one bedroom is allowed for each of the following:

• A couple
• A single adult
• A child over the age of 16
• 2 children of the same sex under the age of 16
• 2 children of either sex under the age of 10

The number of bedrooms a household needs can be increased in certain circumstances. The rules in this area are complicated but include the following groups:

• Disabled adults who need overnight care
• Households with disabled children who cannot share a bedroom because of their disability
• Foster carers
• Households with adult children in the armed forces who are away from home for University

Once your local council/the DWP have worked out how many bedrooms you are deemed to need using the above rules, they will regard any bedroom you have above this as ‘extra’. This is regardless of its size, or what it is used for, and so will mean you receive less Housing Benefit or Universal Credit and you will have to make up the difference.

What can I do?

If your Housing Benefit or Universal Credit is being reduced by the Bedroom Tax:

• First check that a Bedroom Tax deduction should apply to you. If you don’t think it should (maybe the local council / DWP have the number of children wrong, or don’t know about your overnight carer) then contact them immediately, and let us know – we may be able to help.
• If the Bedroom Tax is being applied correctly and you are getting Housing Benefit, you need to pay the difference in your rent, otherwise you could lose your home. If you are struggling to pay your rent contact us immediately.
• If the Bedroom Tax is being applied correctly and the Universal Credit you get each month includes help with your rent, this will not cover all the rent that is due so contact us to find out how much you have to pay. If you are struggling to pay your rent contact us immediately.
• If the Bedroom Tax is being applied correctly and the DWP pay part of your Universal Credit to us, towards your rent, this will not cover all the rent that is due so contact us to find out how much you have to pay. If you are struggling to pay your rent contact us immediately.
• If you are having real difficulties paying your rent then you might be able to get a Discretionary Housing Payment- but the council’s budget is limited so you will need to explain your particular difficulties and provide a financial statement showing that you cannot afford the rent that is due. See the section on Discretionary Housing Payments for more information.

Even if the Bedroom Tax should apply to you according to the government’s rules, you might be able to argue successfully to an appeal tribunal that the rules are not being interpreted correctly in your case. Contact us for more information.

Our benefits calculator will help you find out what benefits you can claim. The calculator is free to use, and the details you provide are anonymous.

‘Entitled To’ also have a user friendly budget planner, which is free to use and should only take minutes to complete if you have all your financial information to hand.

We are here to help!

Whether you’re in employment or in receipt of benefit payments, money issues can affect anyone. We’ve provided a range of tools and information to help you manage your money and make sure you’re receiving all the benefits you’re entitled to.