Changes to the Benefit Cap in Northern Ireland
New regulations have been passed which make several changes to the Benefit Cap in Northern Ireland. These Regulations come into effect on 7th November 2016.
What are the changes to the Benefit Cap?
The main change is a reduction in the levels of the Cap. Since 31st May 2016, the cap has been set at £500 per week (£26,000 per year) for couples or households with children, and £350 per week (or £18,200 per year) for single adults. The new regulations mean that from 7th November, these figures will reduce:
- For couples or households with children, the Cap reduces to £20,000 per year – this is £1,666.67 per month, or £384.62 per week
- For single adults, the Cap reduces to £13,400 per year – this is £1,116.67 per month, or £257.69 per week
However, there are also two other changes to the Cap.
First of all, there is a new exemption from the Cap. Households where the claimant, the claimant’s partner, or a young person whom the claimant is responsible for is entitled to Guardian’s Allowance, will be automatically exempt from the cap.
Secondly, the regulations which govern Discretionary Housing Payments will be amended, to allow for households affected by the Cap (whether private tenants or social tenants) to apply for DHPs.
Will households still get a supplementary payment?
For some households, this is unclear.
The Executive’s Mitigation Working Group Report recommended that families with children affected by the Cap should be entitled to a supplementary payment, equivalent to their Cap losses, until up to 31st March 2020. This recommendation was brought into law by the Welfare Supplementary Payments (Northern Ireland) Regulations 2016. However, part 4(4) of these Regulations states that:
“The amount of a welfare supplementary payment to which a person is entitled under this regulation is the amount by which the person’s award of housing benefit is reduced, in accordance with [the Benefit Cap], on the first occasion on which it is so reduced.”
This could potentially mean that where a household has been affected by the higher Cap and has received a supplementary payment, only to be newly affected by the lower Cap, they may not be entitled to an increased, second supplementary payment. If you or any of your clients find yourselves in this situation, contact our advice helpline on 028 9024 5640.
Advice & information
If you are affected by the Benefit Cap and want free, expert and independent advice, call the Housing Rights Helpline on 028 9024 5640, or visit housingadviceNI.org.