Households in receipt of combined benefits of more that £20,000 per year (for a couple or lone parent), or £13,400 per year (for a single claimant) are being reminded of the introduction of a new benefit cap this autumn.
There is currently a benefit cap in place in England, Scotland and Wales restricting the amount of certain benefits that a working age household can receive. Any household receiving more than the cap has their housing benefit reduced to bring them back within the limit.
The cap is currently set at £26,000 per year but from autumn 2016, the government is set to reduce it to £20,000 (for couple or lone parent), or £13,400 per year (for a single claimant) for those living outside London.
The Isle of Wight Council’s benefits service will soon be writing to those whose entitlement to housing benefit may be affected to offer advice and support, currently there are 195 cases potentially affected on the Island. In addition the Department for Works and Pensions have already sent letters to those who may be affected.
Councillor Steve Stubbings, Executive member for adult social care and integration, said:
“The council is working closely with Job Centre Plus, local housing associations and the Island’s Anti Poverty Group to provide advice and support to those residents who will be affected by the reduced benefit cap. We understand the changes being brought in by Central Government will significantly affect some of our most vulnerable residents and we will do what we can to help those residents to adapt to their new financial situations.”
Those residents who receive a letter can use an online benefit cap calculator to estimate how much lower their housing benefit entitlement could be following the introduction of the new cap. The online calculator and details of the benefits that will count towards the cap can be found at www.gov.uk/benefit-cap.
A Department for Work and Pension helpline is also available, providing general information about the changes, support available and advice on how to find out about the benefits you receive. The helpline number is 0345 605 7064, it is open Monday to Friday from 08:00-18:00.
