Benefit cap
Overall Benefit Cap (OBC)
There is a limit on the total amount of welfare benefits that working age households can receive and this is called the overall benefit cap (OBC). The cap applies to households in receipt of Housing Benefit or Universal Credit unless exempt.
Former limit
For couples, families and single parents , the total amount of specified welfare benefits that could be received was £500 per week.
For single people , the total amount of specified welfare benefits that could be received was £350 per week .
Unless you were exempt, if your household received more than the above amount in total for specified welfare benefits, your Housing Benefit payments, or where you were in receipt of Universal Credit, your Universal Credit payments were reduced by the amount that your total benefits exceeded the cap.
Reduced limit
For couples, families and single parents , the total amount of specified welfare benefits that can be received is £442.31 per week
For single people the total amount of welfare benefits that can be received is £296.35 per week .
Unless you are exempt, if your household receives more than the above amount in total for specified welfare benefits, your Housing Benefit payments, or where you are in receipt of Universal Credit, your Universal Credit payments will be reduced by the amount that your total benefits exceed the cap.
Benefit Cap Toolkit
The Benefit Cap Toolkit consolidates information about the changes from a range of Brent Council services and other sources of information into a single document. It comprises both technical information about the changes as well as details of the assistance that is available to residents affected by them. The toolkit may also be provided in an alternative format upon request.
It includes details about the changes affecting Brent Council residents (including relevant statistical data) and the options that they may have in relation to their specific circumstances and how these may be progressed. There are also details of alternative sources of assistance and advice and information for landlords that may be of assistance if they have a tenant or tenants affected by the changes.
The toolkit is intended for use by anyone that is providing advice and information to residents affected by the changes to the Overall Benefit Cap and wishes to know what services may exist to assist them. It is also intended to provide information and advice for access by elected members, landlords and residents alike.
The toolkit will be developed over time in response to experience and feedback. Any comments and suggestions as to how it may be improved would be welcomed. Please contact Brent Customer Services by phone on 020 8937 1800 or on our online contact form with details.
Download the Benefit Cap Toolkit (.pdf, 1.65MB)
Appendix 1- documents to accompany the Benefit Cap Toolkit
Videos explaining how the new changes to benefit cap may affect you
Two short videos explaining about the changes to the benefit cap and summarising the key information below.
VIDEO
VIDEO
Which benefits are counted towards the benefit cap?
If you receive any of the benefits listed below, the income your household receives from these will count towards the benefit cap.
Bereavement allowance
Child benefit
Child tax credit
Employment and support allowance (except where it is paid with the support component)
Housing benefit
Incapacity benefit
Income support
Jobseeker's allowance
Maternity allowance
Severe disablement allowance
Widowed parent's allowance
Widowed mother's allowance
Widow's pension
Are there any exemptions from the benefit cap?
The benefit cap will not apply if you or your partner, as appropriate, qualify for any of the following benefits.
Working tax credit (you will need work for at least 16 hours per week if you are a single parent, 24 hours per week between you if you are in a couple with one of you working at least 16 hours per week or 30 hours if you are a single person)
Attendance allowance
Guardian’s Allowance
Carer’s Allowance
Disability living allowance*
Personal independence payment*
The support component of main phase employment and support allowance
Industrial injuries benefits (and equivalent payments as part of a war disablement pension or the armed forces compensation scheme)
War widow or war widower's pension
* Where these payments are made to a child or young person living in your home, the benefit cap will also not apply.
You will also be exempt from the benefit cap if disability living allowance, personal independence payment, attendance allowance or war pension is not currently being paid to you or your partner as appropriate because of being in hospital or care home.
Additionally, the benefit cap will not apply for a period of 39 weeks starting from the day after you or your partner’s last day of work provided that for at least 50 of the 52 weeks prior to the last day of work, you or your partner were engaged in paid work and were not entitled to Job Seekers Allowance, Employment Support Allowance or Income Support; and in the last week of work, you or your partner worked at least 16 hours.
For the above conditions, maternity, paternity or adoption leave or receipt of statutory sick pay count as being in work.
What happens if the benefit cap reduces my entitlement to Housing Benefit to nil or less than the minimum amount of Housing Benefit permitted by law of £0.50 per week?
If this situation should occur, you will be treated as being entitled to Housing Benefit of 50 pence per week (i.e. £26.00 per annum).
This will enable you to apply for a Discretionary Housing Payment (DHP) to seek short term assistance with your Housing costs, although awards are only made in certain situations.
How to apply for DHP
What are the options available to me?
Where can I find out further information about the cap?
You can get more information about the cap from:
Calculate your benefit entitlement
A benefit calculator is now available to help you determine whether you may be entitled to Housing Benefit and/or Council Tax Support and the potential amount.
If you find that you may be entitled, you will be able to access the benefit claim form directly from the ‘Results’ page of the calculator.
The calculator will also permit you to assess the impact of increasing your working hours and/or pay on your entitlement.
Calculate your benefit entitlement now
Local Housing Allowance
Local Housing Allowance (LHA)
LHA applies to most private sector accommodation.
However, it excludes for example council and registered housing association lettings, mobile homes, caravans, shared ownership cases, and social accommodation where care, support or supervision is provided.
The LHA considers the location and the size or category of accommodation rather than the rent actually payable for it.
LHA rates take into account the number of bedrooms needed by a claimant and their household up to a maximum of four and are based upon the number of people in your home as set out below.
The LHA rate is set by the Valuation Office Agency and places a cap on the maximum amount of Housing Benefit that claimants can receive. Please note that this is different to the Overall Benefit Cap which applies to the total of all the welfare benefits which a claimant receives.
In its summer 2015 budget, the Government stated that LHA rates were to be “frozen” for a period of four years from April 2016. This will mean that the maximum rent that may be payable as Housing Benefit for a relevant property will remain unchanged during that period of time.
How many bedrooms am I entitled to?
The number of bedrooms you need will be based on how many people you have living with you. We do not count other rooms such as a living room, kitchen or bathroom.
You will be assessed as needing one bedroom for each of the following people up to a maximum of four bedrooms.
Every adult couple (married or unmarried).
Any other adult aged 16 or over.
Any two children of the same sex aged under 16.
Any two children aged under 10.
Any other child.
An extra bedroom may be included for the following people but only up to the maximum limit of four as outlined above.
A foster parent with or without a placed child.
A disabled child who needs their own room.
A non resident carer providing regular overnight care.
A child that was previously a non-dependant and who is away on armed forces duty and intends to return to your home afterwards.
What If I have more than 4 bedrooms?
If you make a new application for LHA or change your address and are assessed as needing more than 4 bedrooms for the occupants of your home, you will have your Housing Benefit restricted to the 4 bedroom rate.
Are there any exceptions to these rules?
If you are a single person under 35 years of age, you will always receive the shared room rate for LHA purposes regardless of the property you actually occupy.
If you claim Housing Benefit, you can only get it for yourself and your family. If you have another adult living with you, on a non commercial basis, your benefit may be reduced.
If you are a joint tenant, this may affect the amount of Housing Benefit you get as your benefit will be calculated based upon your share only.
Calculate your benefit entitlement
A benefit calculator is now available to help you determine whether you may be entitled to Housing Benefit and/or Council Tax Support and the potential amount.
If you find that you may be entitled, you will be able to access the benefit claim form directly from the ‘Results’ page of the calculator.
The calculator will also permit you to assess the impact of increasing your working hours and/or pay on your entitlement.
Calculate your benefit entitlement now
Local Welfare Assistance (LWA)
Local Welfare Assistance (LWA) is a discretionary support scheme. LWA payments may be made to help residents who do not have an alternative means of paying for what they need.
The payments are intended to meet one-off needs rather than on-going expenses and are aimed at helping:
people in short-term need because of a crisis or emergency
support vulnerable people in the community
ease exceptional pressure on families.
View further information about Local Welfare Assistance .
Bedroom Tax
Bedroom Tax - Social Sector (Council and Housing Association properties)
Housing benefit has changed for people who rent from the council, a registered housing association or a registered social landlord.
Working age customers who have more bedrooms in their property than they need, according to the size criteria, will have their housing benefit reduced.
This could affect you:
if you are 16 to 61 years old
even if you only get a small amount of housing benefit – for example if you are working
even if you are sick or disabled.
You won’t be affected if:
you live in a one bedroom flat or bedsit, or if
you or your partner is old enough to receive pension credits.
Housing benefit will be restricted for some people who are living in a property that is larger than their household needs.
The number of rooms needed will be based on the size of a claimant’s household.
The new rules allow one bedroom for:
every adult couple (married or unmarried)
any other adult aged 16 or over
any two children of the same sex aged under 16
any two children aged under 10
any other child
a carer (or team of carers) who do not live with you but provide you or your partner with overnight care.
What this means for you
If you're assessed as having more bedrooms than you need your housing benefit will be reduced by:
14 per cent if you have one extra bedroom
25 per cent if you have two or more extra bedrooms
What can you do?
You can:
talk to your landlord about transferring to a smaller home or taking in a lodger
contact the us to ask about extra financial help. Councils have a limited amount of money available to make discretionary payments towards housing costs
try to find some paid work to increase your income
make sure you are claiming all the benefits you can, for example, money to help with the costs of a disability.
Calculate your benefit entitlement
A benefit calculator is now available to help you determine whether you may be entitled to Housing Benefit and/or Council Tax Support and the potential amount.
If you find that you may be entitled, you will be able to access the benefit claim form directly from the ‘Results’ page of the calculator.
The calculator will also permit you to assess the impact of increasing your working hours and/or pay on your entitlement.
Calculate your benefit entitlement now
