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23 January 2012
On 4 October 2010 Chancellor George Osborne, speaking at the Conservative conference, announced a number of benefits measures which will be introduced in 2013. These were:
From April 2013 there will be a cap for lone-parent and couple households of around £500 a week, which is the equivalent of a net salary of £26,000 per year, or a gross figure of £35,000 per year. There will also be a cap of around £350 per week for single-adult households.
The cap will apply to combined income derived from benefits including jobseekers allowance, income support, employment support allowance, housing benefit, child benefit, carers allowance and later the new universal credit.
Initially the intention is that that cap will be delivered by Local Authorities who will reduce housing benefit payments where the cap applies. Later deductions will be made from universal credit.
Benefits such as social fund loans and free school meals are not affected. Discretionary housing payments will not be included within the cap [source Hansard Committee stage debate - Monday, 21 November].
Council tax benefit will also not be part of the cap following localisation of this support by the Department for Communities and Local Government.
After the introduction of universal credit, the childcare element of universal credit will be excluded from benefit cap calculations.
The following will be exempt from the cap:
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