Universal benefit cap rules

Malibu1209

Could somebody explain to me the benefit cap rules for universal credit and how it’s worked out?
I had my first payment at the start of this month and found out today what my second months payment is. Nothing has changed in that time. The first month what I got was higher than the £1666.67 cap but I got all of the money with no deductions despite it saying about the benefit cap.
This month it states the same amount I got last time but deduction of 443 to keep me under the benefit cap. This takes me about £300 below the monthly cap despite it saying I am entitled to more.
Hope that makes sense?
How do they work out to take 443 off of me taking me well under the cap rather than just taking enough from me in line with the cap?

poppy12345

Malibu1209 wrote: »

Could somebody explain to me the benefit cap rules for universal credit and how it’s worked out?
I had my first payment at the start of this month and found out today what my second months payment is. Nothing has changed in that time. The first month what I got was higher than the £1666.67 cap but I got all of the money with no deductions despite it saying about the benefit cap.
This month it states the same amount I got last time but deduction of 443 to keep me under the benefit cap. This takes me about £300 below the monthly cap despite it saying I am entitled to more.
Hope that makes sense?
How do they work out to take 443 off of me taking me well under the cap rather than just taking enough from me in line with the cap?

Whether you're affected by the benefit cap will depend on your circumstances. https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/benefit-cap/


How much UC you're entitled to will also depend on your circumstances. Do you work? have limited capability for work? rent or own your own home. have dependent children, single or couples claims are you under or over 25 years old?

NedS

Malibu1209 wrote: »

I had my first payment at the start of this month and found out today what my second months payment is. Nothing has changed in that time. The first month what I got was higher than the £1666.67 cap but I got all of the money with no deductions despite it saying about the benefit cap.
This month it states the same amount I got last time but deduction of 443 to keep me under the benefit cap. This takes me about £300 below the monthly cap despite it saying I am entitled to more.

The benefit cap includes child benefit (CHB), which is not part of UC, so your total UC + CHB can not be more than £1,666.67 per month, so the maximum amount of UC you can receive will be £1,666.67 minus any CHB you have received that month if the benefit cap applies. Note CHB is paid weekly (or 4 weekly) so they will average it as a monthly equivalent for UC purposes.

Maybe you were exempt from the benefit cap in the previous month, or maybe UC were just slow in applying it and made a mistake in the first month.

huckster

What happens with the first assessment period (AP), is that a temporary benefit cap grace period is applied to the first AP only. This is because UC are waiting for the 'confirm previous work earnings to do' to be completed. Until this to do is completed UC don't know whether previous work earnings would qualify anyone for a benefit cap exemption.

Given that the benefit cap has been applied to second AP, this either means previous work earnings were not enough to qualify for BC exemption or the earnings to do has not been completed.

As it stands, there has probably been an overpayment for the first AP and this will be processed at some point, with a debt to be repaid over a period, with a deduction made each AP until paid off.

Calculation is that net UC award + UC deductions (payments made on your behalf from UC towards advance repayments, debts, rent arrears to landlord etc) + Child Benefit, should not exceed the £1666.67. The amount exceeding the BC is shown as a BC adjustment on the UC statement.

Malibu1209

Thanks all. I didn’t realise child benefit was part of that cap but it’s still more than I expected should be taken to keep me under it. I hadn’t really thought about it to be fair but would have thought if you were entitled to more than the cap then they would just take you down to the cap with deductions rather than a lot below it. I don’t get anything else just child benefit and universal credit and the child benefit is not 443.
I’ve added a note to my journal so they can explain, just need to know where I stand month to month

huckster

So what was your net UC payment ?

What deductions are noted on the statement e.g. advance repayments, other benefits being deducted ?

How much child benefit do you receive per week ?

If you can provide the information, it is easy to work out.

£443 is the benefit cap adjustment and not the actual amount of child benefit.