Thousands of British people in receipt of regular benefits payments from the Department for Work and Pensions (DWP) face seeing their entitlement cut from April 2024 despite the 6.7 per cent raise announced in the chancellor’s recent Autumn Statement, a charity has warned.
The Child Poverty Action Group (CPAG) has cautioned that Jeremy Hunt’s decision not to raise the benefit cap – the total amount people of working age in need can claim – in tandem with payments, as he did in his 2022 statement, will mean that the increase he did announce will actually serve to push more people beyond the cap’s threshold.
“Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more,” CPAG said in a statement.
“The benefit cap severs the link between need and entitlement in our social security system: a household will have their total need for support assessed, and if this comes out above the level of the cap (currently £22,020 per year for families with children, or £25,323 for families in London) they will simply receive less than they need.
“There are wide variations in the amounts that households are capped, but the average is £53 a week, a loss keenly felt by those already struggling to survive below the poverty line.”
A spokesperson for the DWP told The Independent: “We are supporting the most vulnerable with a record £94bn cost of living support package – worth around £3,700 per household – and have halved inflation to make everyone’s money go further.
“On top of this we’ve raised benefits by 10.1 per cent and are investing £3.5bn to help thousands into jobs – the best way to help people secure long term financial security.”
Here’s everything you need to know about the cap.
What is the benefit cap and how much is it?
The cap is determined according to an applicant’s circumstances, taking into account their location, whether or not they have children and whether they are applying as a single person or as part of a couple.
The cap is set at the following rates if you live outside of London:
If you live within greater London, the cap is set at the following rates:
Who does it apply to?
The cap typically applies to people aged between 16 and state pension age and in receipt of any of the following payments:
Who is exempt?
Anyone above state pension age is not affected by the cap and it will not affect anyone below that marker if they or their partner:
People are also exempted from the cap if they, their partner or any children under 18 living with them receives:
If you are affected by the cap, it is worth bearing in mind that it might not start to apply for nine months, depending on your earnings, thanks to a “grace period” allowed for.
If the cap does place you in difficulties, the government advises you to contact the DWP or your local council as soon as possible.
