The benefit cap is to be frozen next year, the DWP has confirmed. While many hoped that the limit on annual benefit payments for 2025 to 26 would take inflation into account, the figures have remained the same.
This will mean that even though many benefits have increased, those who have hit the cap will not see any higher payments for 2025 to 26.
The amount you get through the benefit cap depends on whether you live inside or outside Greater London, you’re single or in a couple and if you have children living with you.
What is the benefit cap?
The benefit cap is a limit on the total amount of benefit each person can get. It applies to most people aged 16 or over who have not reached State Pension age.
The cap for couples (with or without children) or single claimants with a child of qualifying age in Greater London will remain at £25,323.00, while single adult households without in the capital children will be capped at £16,967.00
The annual level of benefit cap for the rest of Great Britain will see couples (with or without children) or single claimants with a child of qualifying age limited to £22,020 a year. Single adult households without children will be capped at £14,753.
The news comes as it was also announced that housing benefits would also be frozen. This means Local Housing Allowance (LHA) rates will stay at their current level from April 2025.
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The is expected to hit households renting from a private landlord. Charity Shelter has said rising rents, combined with a shortage of social housing, is putting families at risk of homelessness.
The Joseph Rowntree Foundation has said that private renters on housing benefits will be around £700 worse off per year, or £887 per year for a working-age couple with children.
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
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