DWP benefit claimants face payments cut next year

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Thousands of British folks in receipt of normal advantages payments from the Department for Work and Pensions (DWP) face seeing their entitlement cut from April 2024 regardless of the 6.7 per cent increase introduced within the chancellor’s latest Autumn Statement, a charity has warned.

The Child Poverty Action Group (CPAG) has cautioned that Jeremy Hunt’s choice to not increase the benefit cap – the whole quantity folks of working age in want can declare – in tandem with payments, as he did in his 2022 assertion, will imply that the rise he did announce will really serve to push extra folks past the cap’s threshold.

“Increasing benefit rates and support with rent costs will make a difference to many families continuing to struggle with rising prices, who approach this winter terrified about how they will get by. But, sadly, these changes will provide absolutely no help to the over 85,000 households affected by the benefit cap, who will receive not one penny more,” CPAG stated in an announcement.

“The benefit cap severs the link between need and entitlement in our social security system: a household will have their total need for support assessed, and if this comes out above the level of the cap (currently £22,020 per year for families with children, or £25,323 for families in London) they will simply receive less than they need.

“There are wide variations in the amounts that households are capped, but the average is £53 a week, a loss keenly felt by those already struggling to survive below the poverty line.”

A spokesperson for the DWP instructed The Independent: “We are supporting the most vulnerable with a record £94bn cost of living support package – worth around £3,700 per household – and have halved inflation to make everyone’s money go further.

“On top of this we’ve raised benefits by 10.1 per cent and are investing £3.5bn to help thousands into jobs – the best way to help people secure long term financial security.”

Here’s all the pieces you should know concerning the cap.

What is the benefit cap and the way a lot is it?

The cap is decided in accordance with an applicant’s circumstances, taking into consideration their location, whether or not or not they’ve kids and whether or not they’re making use of as a single individual or as a part of a pair.

The cap is ready on the following charges for those who dwell exterior of London:

If you reside inside larger London, the cap is ready on the following charges:

Who does it apply to?

The cap sometimes applies to folks aged between 16 and state pension age and in receipt of any of the next payments:

Who is exempt?

Anyone above state pension age will not be affected by the cap and it’ll not have an effect on anybody under that marker in the event that they or their companion:

People are additionally exempted from the cap in the event that they, their companion or any kids beneath 18 residing with them receives:

If you might be affected by the cap, it’s price taking into account that it won’t begin to apply for 9 months, relying in your earnings, because of a “grace period” allowed for.

If the cap does place you in difficulties, the federal government advises you to contact the DWP or your native council as quickly as potential.

For extra data on the benefit cap, go to the UK authorities’s web site or Citizens Advice and, to find out whether or not or not it would have an effect on you, go to the charity Turn2Us’s advantages calculator.