Welfare Reform Update: The Benefit Cap/LHA Maxima
Written by Marcus
10th February, 2017
The Benefit Cap
The benefit cap was reduced in November from £26,000 to £20,000. The cap is normally imposed by reducing your entitlement to housing costs or housing benefit. You are exempt from the cap if they work 16 or more hours per week. Its important residents affected get in touch with our Money Advice team, who are on hand to help you with all things money. You can contact the team by emailing firstname.lastname@example.org or calling us on 01495 745910.
From April 2019, the Housing Benefit that residents receive will be capped at the Local Housing Allowance (LHA) rate for their property type and area. If the rent for your home is higher than the Local Housing Allowance you are entitled to, you will have to pay the difference. This will apply to anyone who has signed a new tenancy from April 2016 and also all Universal Credit claimants, no matter when their tenancy started.
It’s important that if think you might be affected to our Money Advice team.