Benefit warning as cap could hit thousands of Universal Credit payments – are you affected?


Experts warn that thousands of households are set to lose cash from their Universal Credit and benefit payments.

Another 35,000 will come under profit margins In the coming year, limiting the amount they receive.


More people will end up limiting their benefits, which will cost them Alamy

This is according to an analysis by the Child Poverty Action Group (CPAG) and tops 120,000 households that are already affected by rules on how much people can claim.

Benefit There is a limit of £20,000 per year for families, or £23,000 in London.

The limit is £13,400 per year for individuals or £15,410 for those living in the capital.

universal credit Counts towards the cap along with other benefits like Child Benefit, Housing Benefit and Job Seekers Allowance.

Millions of people now await a £650 living payment on Universal Credit
Free cash up to £7,248 on benefits including £650 for cost of living

There are some exemptions when the benefit limit does not apply, for example if you are entitled to the work tax credit.

If your benefit payment exceeds the cap, your Universal Credit or Housing Benefit gets reduced.

These rules were first introduced by the government in 2013.

Since then till now the limit has not increased Rising inflationquit thousands of families are real worse,

This means that no one affected by the hat was found Annual growth in profits coming in AprilEffectively freezing the amount they receive.

The impact on thousands of families – the majority with children – is that they are now an average of £1,840 spoiled.

Without the increase in the benefit limit, CPAG estimates that another 35,000 would reach the maximum limit.

It comes as millions of families see a cost of living rocket, putting severe strain on finances,

Inflation has come down to 9.1% but so are the rising prices Hitting the lowest earners close to 11%,

Profit Limit “Broken”

Charity boss Alison Graham said: “The cost of living crisis shows that the benefit threshold has been broken, and needs to go.

“It has always forced families to live on far less than they need, but as prices rise, the effects are brutal and more than 300,000 children are its casualties.”

“In his cost-of-living support package, the chancellor recognized that families subject to the cap face the same cost pressures as everyone else.

“By the same logic, the cap should be removed to help keep the worst families afloat.

“The rise of next April [of benefits] Benefit should be available to each family as a bare minimum layer of protection against dramatically higher living costs.”

Universal credit and certain benefits to everyone £650 cost of living payment.

Chancellor Rishi Sunak a. announced help as part of A package of measures to help hard-to-reach families.

first half of Payment of £650 is due on affected bank accounts from 14 July And the second will come in autumn.

Those who are currently under the benefit limit will still receive payment.

The amount will not contribute to the benefit limit, and will not extend to those close to the limit.

It has been estimated that families with children lose an average of £236 per month and some up to £400 because of the limit on total benefit amounts.

What is the benefit limit?

The mileage limit outside Greater London is:

  • £384.62 per week (£20,000 per year) if you are a couple
  • £384.62 per week (£20,000 per year) if you are a single parent and your children live with you
  • £257.69 per week (£13,400 per year) if you are a single adult

The mileage limit inside Greater London is:

  • £442.31 per week (£23,000 per year) if you are a couple
  • £442.31 per week (£23,000 per year) if you are a single parent and your children live with you
  • £296.35 per week (£15,410 per year) if you are a single adult

What profit counts towards CAP?

  • universal credit
  • bereavement allowance
  • child benefit
  • child tax credit
  • Employment and Support Allowance
  • housing benefit
  • disability benefits
  • income support
  • Jobseeker’s Allowance
  • maternity allowance
  • severe disability allowance
  • Widow Parent’s Allowance (or Widow Mother’s Allowance or Widow’s Pension if you have started receiving it before 9th April 2001)

if you are over state pension Age You will not be affected by the benefit limit.

Your payments also won’t be limited if you get working tax creditHave a limited ability to work on Universal Credit due to a health condition or disability, or care for another disabled person and receive UC.

If you or your partner, after tax, together earn £617 or more in a month and National Insurance contributionsYou won’t be impressed by the hat.

You may also get a nine-month “grace period” when you first start claiming Universal Credit, where this limit doesn’t apply.

What can I do if I hit the profit limit?

You should check if you are getting all the benefits you are entitled to, suggests the charity Turn2U.

There are some benefits that are not subject to caps, such as Personal Independence Payment (PIP) and Attendance Allowance, so they can increase your income if you do receive them.

You can use a free benefits checker to see what you may be entitled to, but keep in mind that this won’t be certain until you apply.

free The calculator Finds out if you qualify for various benefits, tax credits and universal credits.

If you do not wish to register, subscriber groups and charity step change Both have benefits tools powered by Entitelto’s data that let you save your results without having to log in.

use Policy in Practice Calculator Not only to find out what benefits you can get, but also to find out how much cash you will have each month after paying for housing costs.

Donation Turn2Us Profit Calculator Find out what means-tested benefits you may be entitled to, as well as whether or not you qualify for Carer’s Allowance.

It states that it does not count non-means tested benefits and contributory benefits, but it will include these in your results if you are already receiving them.

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If you’re on Universal Credit, you can also get additional assistance, which increases your income but doesn’t count towards the maximum limit.

which includes a Council tax exemption and help with food and energy bills between support.

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