The household Benefit Cap, which caps the amount of benefits that working-age, out-of-work families can receive, will be reduced further from the autumn of 2016. It will be set at £23,000 per year in London and £20,000 in all other parts of the country. There will be a lower cap for single person households of £15,400 in London and £13,400 in other areas.
This will mean that around 9000 families in Birmingham and Coventry will be affected and will find that the amount of Housing Benefit they get will be reduced to, in some cases, only 50 pence per week.
The DWP will be writing to those affected over a 10 day period from 23rd May. Local Authorities will send a further letter out after this. In Coventry they will include a leaflet from local advice agencies encouraging those affected to seek advice to find out if they can gain an exemption from the benefit cap.
19th May 2016