Other changes to the benefits system

Benefits cap

Benefit payments to people living outside of London are to be capped at £20,000 per year. This is equal to £384 per week including housing benefit. This means that families with three or more children will in some cases lose some or all of their housing benefit

If you or anyone in your household receives Disability Living Allowance (DLA) or ESA Support Group then the cap doesn’t apply

Housing benefit is the only benefit that can be reduced. So if you get more than £384 in other benefits you will still get those paid in full. It is only when you move onto Universal Credit that the full amount can be capped.


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Child Tax Credits

Child tax credits will be limited to just two children. This will only apply to children born after April 2017 and disabled children are excluded. However if you make a new claim for Universal Credit you will only be able to claim the child element for two children regardless of when any additional children were born 

For new tax credit claims the higher amount given to the first child will be removed

There will be no automatic entitlement to housing costs for 18–21 year olds if you make a new claim for Universal Credit; however, we are expecting there to be lots of exemptions (more detail to be announced) 

Council tax benefit

Council Tax Benefit is being abolished (stopped) from April 2013 and replaced by local Council Tax Support Schemes. If you received Council Tax Benefit before April, if you are of working age it is very likely you will have to pay some of your Council Tax from April 2013- even if you got full Council Tax Benefit before. If you got partial Council Tax Benefit, you may have to pay more Council Tax after April. Pensioners are exempt.


Personal Independence Payment (PIP)

The introduction of a new benefit called Personal Independence Payment  - or PIP will gradually replace Disability Living Allowance (DLA), which is currently paid to people under 65 who have daily care needs or difficulty getting about. Not everyone who gets DLA will be able to get PIP in future.​​​