Changes to the benefit system

Under occupancy (bedroom tax)

If your landlord is a housing association, your benefit may be reduced by:

  • 14% of the rent for one spare bedroom
  • 25% of the rent for two or more spare bedrooms

You can check if you will be affected by the bedroom tax at

Benefit cap

There is a limit to the amount of benefits 16 to 64 year olds can get. This is known as a benefit cap.

The income you get from benefits is limited to:

  • £384.62 a week for couples or single parents with children
  • £257.69 a week for single people.

You won’t be affected by the benefit cap if you get any of the following benefits:

  • Working Tax Credit
  • Attendance Allowance
  • Carer's Allowance
  • Disability Living Allowance
  • Employment and Support Allowance with the support component
  • Guardian's Allowance
  • Industrial Injuries Benefits
  • Personal Independence Payment
  • War Widow or War Widower's Pension.

Universal Credit

Universal Credit is a monthly payment that will gradually replace the following benefits:

  • Child Tax Credit
  • Working Tax Credit
  • Housing Benefit
  • Employment and Support Allowance Income-related
  • Income Support
  • Jobseekers Allowance Income-based

From November 2018 you won’t be able to get housing benefit. You’ll need to apply for help through Universal credit.