The benefit cap is a limit that has been placed by the UK government on the amount of benefit that can be paid to people who are receiving housing benefit or universal credit.
When it was introduced in 2013, the cap was £26,000 per annum (£18,200 for single people without children, however that also includes non-resident parents). The cap was reduced from November 2016 to £20,000 per annum (£13,400 for single people without children).
The original cap of £26,000 was based on the premise the non-working households shouldn’t receive more than the average earnings of working households, but this didn’t take into account that a working household might also receive some benefits and tax credits. There is no equivalent rationale for the lower limit of £20,000.
The cap is applied by reducing the amount of housing benefit or universal credit that you are entitled to. This has the effect of leaving you with a shortfall between the rent you are charged and the benefit you receive to help you pay rent.
Glasgow West Housing Association
5 Royal Crescent
Phone: 0141 331 6650
Repairs: 0141 331 6652
Tenancy: 0141 331 6651
Registered with the Scottish Housing Regulator HEP 126. Registered under the Community and Benefit Societies Act 2014. Registered as a Scottish Charity SC001667.
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