THOUSANDS on benefits and Universal Credit could see a pay rise as incomes are squeezed in the cost of living crisis.
It comes as the benefit cap could be raised after six years of remaining the same.
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Since 2013, families seeking benefits and Universal Credit have faced a limit to the amount they can get and that amount has not risen since 2016.
But now the government has hinted that the cap could be raised to combat soaring living costs.
Therese Coffey, Work and Pensions secretary said she may review the cap as she’s “slightly concerned as to whether we have a real reflection of life” in the figure.
There’s no guarantee that the limit will be increased, but a review could happen between now and April next year when the annual uprating of benefits takes effect.
The current cap depends on where you live, but it is currently set at £20,000 a year for families outside of London, or £23,000 for those in London.
And for individuals it’s £13,400 a year, or £15,410 for those living in the capital.
If your benefit payments are more than the cap then your Housing Benefit or Universal Credit is reduced.
Though as inflation continues to climb, forcing food and fuel prices up, the cap has affected more families.
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According to analysis by the Child Poverty Action Group (CPAG), another 35,000 households could join the other 120,000 already affected by the cap if it doesn’t go up next year.
What you can get under the benefit cap
The benefit cap outside Greater London is:
- £384.62 per week (£20,000 a year) if you’re in a couple
- £384.62 per week (£20,000 a year) if you’re a single parent and your children live with you
- £257.69 per week (£13,400 a year) if you’re a single adult
The benefit cap inside Greater London is:
- £442.31 per week (£23,000 a year) if you’re in a couple
- £442.31 per week (£23,000 a year) if you’re a single parent and your children live with you
- £296.35 per week (£15,410 a year) if you’re a single adult
The cap affects multiple benefits, including the following:
- 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 (or Widowed Mother’s Allowance or Widow’s pension if you started getting it before April 9, 2001)
If you get certain benefits like Personal Independence Payment (PIP) or you are over State Pension age, you might not be affected by the benefit cap.
And if you’re claiming Universal Credit, the benefit cap might not start for nine months, depending on your earnings.
Other help you can get if you’re affected by the benefit cap
It’s worth double checking if you’re getting all the benefits you’re entitled to to make sure you’re not missing out on extra income.
You can use a free benefits checker to check what you’re entitled to, but note that it is a guide only.
Charity Turn2Us’ benefits calculator works out what means-tested benefits you might be entitled to, as well as whether you qualify for carers allowance.
It doesn’t calculate non-means tested and contributory benefits, but it will include these in your results if you already recieve them.
Entitledto’s free calculator checks whether you qualify for multiple benefits, tax credits and Universal Credit, but you have to register an account.
If you don’t want to register, consumer group MoneySavingExpert.com and charity StepChange also have benefits tools powered by Entitledto’s data that let you save your results without making an account.
Or you can use Policy in Practice’s calculator to not only find out which benefits you could receive as well as find out how much cash you’ll have leftover each month after paying for housing costs.
If you’re not eligible for benefits, you may still be able to make the most of other government schemes.
For example, the Household Support Fund (HSF) has a pot of £500million to be dished out by October 2022, but you have to make a claim for a slice of the free cash from your local council.
The help you can get depends on your local council, but many are giving out food and fuel vouchers as well as free school meal vouchers.
If you are a parent or expectant mum on a low income or benefits, you could be entitled to Healthy Start vouchers which give you up to £442 a year towards food.
We explain everything you need to know about the Healthy Start scheme.
If the HSF or Healthy Start Vouchers aren’t applicable to you, you may be able to seek help from a food bank.
Find your nearest one by typing your postcode into the online search bar on The Trussell Trust’s website.
You’ll need to be referred by one of your local community organisations as you can’t make a claim at a food bank yourself.
Examples of these are schools, GPs, or advice agencies such as Citizens Advice.
Here’s more information on how to get help from your local food bank.
