to ask if you will be affected by the reduced benefit cap (to £23,000)...

[steiner8]

where do you currently live and what changes you will have to make because of the cap? Will you need to move? Will you have to cut down on food? Will you have to cut down on clothes and toys for your children?

[Tequilashotfor1]

worked hard to get a decent job

What about all the people that graft their arses off every day some in hard manual jobs and still have to claim because of shit wages. Or those that did go to uni and came away with no jobs as their field has no spare jobs. It those that never had a chance to go to uni even though are very intelligent but still have to work a poor paid job because they have to feed there family some how. Or those that had a decent job but got made redundant?

That really pisses me off -" I worked hard to get a decent job".

[DisconcertedAndRetired]

I've just googled, and apparently that's not correct. The following page explicitly says (as an example) that if you are funded for three bedrooms, you lose nothing if you live in two.

www.entitledto.co.uk/help/local-housing-allowance

For instance, say that you have opposite sex children age 11 and 8 and so qualify at the 3 bedroom rate. If you in fact live in a 2 bedroom house it doesn’t matter – LHA pays your rent up to your bedroom entitlement amount (the 3 bedroom rate in this case). The idea is that you could (say) choose between living in a bed 3 apartment with no garden and a 2 bed house with a garden.

I've read that the rules for LHA can be slightly different to other housing benefit, so maybe the actual number of bedrooms would matter in non-LHA claims.

[formidable]

No, I'm not affected.

[Beth2511]

With both pur incomes we earn 26000. Without mine its 19000 where we would get tax credits/housing benefit. As someone planning returning after maternity leave, it makes me wonder if there is much point me returning :(

[kirinm]

Tequila - I'm not suggesting that I've worked harder than anyone else. I did work hard but that doesn't mean I don't think anyone else did / does. I didn't want anyone here thinking that my defence of those who need tax credits or housing benefit (all of which I've benefited from at times) comes from my having a self interest in the cap. I deplore the race to the bottom that now seems to be the norm. I got lucky a few times to get the job I've got but I also raised my son alone from the age of 17. I did that relying on support from the government. I don't think it's fair that the support be taken away from anyone that needs it.

[latebreakfast]

I don't get why people say that housing benefit doesn't count because it gets paid direct to the landlord. It's still money being spent on you - and critically money that people not receiving that benefit have to find themselves..

[LumpyCustard69]

Housing benefit gets paid into the claimant's bank account, not the landlord's or letting agent's. Lots of people saying here that it goes straight to the landlord. It does not.

[OddBoots]

So many people are exempt from the cap including those getting working tax credit, claiming disability benefits or of pensionable age I can't see the government saving much.

[sashh]

Hypothetically, if affected by the 23K cap, we'd live in a cheaper property, one bedroom instead of two-bedroom we'd be claiming for, so we could stay in the area and be near potential work. (As far as I know there's no rule that says you can't have fewer bedrooms than you're being funded for.)

You are confusing two things, the 1 bed place might be more expensive than the 2 bed so no saving. The other thing is they pay an amount based on the number of beds you have and the number you need, so if you move to a cheaper 1 bed property the amount will go down.

Unless you are in an area with the local allowance, then you get an amount of money and it is up to you if you choose a bigger property or one with a garden, the situation anyone who is earning enough is in, choice.

Housing benefit gets paid into the claimant's bank account, not the landlord's or letting agent's. Lots of people saying here that it goes straight to the landlord. It does not.

It can be paid to either, most people with a choice have it paid directly tot he landlord, but if it goes in to your account it still goes straight out again so you don't really see it.

[WorktoLive]

But people who don't receive any benefits have to pay for housing too.

Discounting part of benefits 'because it goes to the landlord' is like me saying 'I earn £40k per year, but it's really only £20k because half of it goes on tax/NI/pension payments and rent'.

[Branleuse]

I won't be affected by the cap, as even though I am entitled to certain benefits, I am exempt as a carer for children with disabilities in receipt of DLA. I didnt realise this till I just checked now.

[sashh]

WorktoLive

No it isn't, it's like saying I earn £40K a year but it's really only £20K because the cheapest place I can find to live costs £20K pa rent.

Don't you realise benefit claimants pay tax, NI, pension, council tax?

Do you realise benefits are taxable income?

[cleoteacher]

£23,000 from a part time job sounds a good wage to me. I work part-time and earn nothing like that. I really wish I did!

I think £23,000 sounds like a reasonable cap and don't see why people would struggle that much. As someone said up post lots of people work and don't claim any benefits and earn less than that. It does leave a bad taste in your mouth if people are getting more than that in benefits if they do or don't work.

[Tequilashotfor1]

sash no- it reallyis 40,000 grand a year. It is real money

[manicinsomniac]

manic clearly you haven't been on any of the benefit threads....

I have. But rarely, if ever, have I seen someone who doesn't work (ie no WTC) without disabled dependents (ie no DLA or CA or other health benefits) in an affluent area with several children.

As I understand it those are going to be the only ones affected by this.

[LumpyCustard69]

Not where I live sashh.
Many landlords won't have people on benefits, so the claimants have it put into their own bank account and transfer it themselves. I'm guessing that's why they brought the option in.
My point was partly that most people seem unaware of what claiming benefits actually involves, but also, that they can do as they please with the money, and then claim squatters rights if they so wish. When people are evicted in this area, it is common for the council to tell them to squat as long as they possibly can, as there is not enough housing in the area to place them in, and landlords here don't want benefit claimants.

[sashh]

Many landlords won't have people on benefits, so the claimants have it put into their own bank account and transfer it themselves.

Er, if your landlord won't accept benefits claimants then it doesn't matter if the money goes in to your account or not, they will not rent to you.

Tequilashotfor1

Why the face? The point is that if you earn £40K then yes you earn £40K, but if you were forced to hand over £20K then your actual income would be £20K. But because you are earning that money you have the choice to rent somewhere at £20K, ren somewhere cheaper or buy a property. If your salary goes up then you will have more money in the bank, if you are on benefits and your salary goes up you have exactly the same, sometimes less money in your bank.

£23,000 from a part time job sounds a good wage to me. I work part-time and earn nothing like that. I really wish I did!

It is 'per claim' so it is for a family, say both parents are earning minimum wage and both work 30 hours a week (which is part time) then their pre tax/pre benefit salary is £20280, the benefits they may receive would be working tax credit - you can only get that if you are working, child tax credit, which you can only get if you have children and partial housing benefit. At the moment they can get some help with child care, if they have children, under the cap they won't. Do you really think they would both be able to work without any childcare? Obviously it depends on whether they have children and their ages.

No single person gets anything like £23K.

[cleoteacher]

Ok get your point. But someone up thread (might have been the OP) said their friend who is single and has 3 dc works part time and would be affected by the cut as gets more than 23k at the moment.

[LumpyCustard69]

They will if you lie on your tenancy, which again, is very common (and often advised).

Jobcentre classes 30 hours as full time, so I can only assume tax credits do also.

[WorktoLive]

Don't you realise benefit claimants pay tax, NI, pension, council tax?

Do you realise benefits are taxable income?

Of course benefit claimants pay tax and NI (above the personal allowance) on earned income.

And pensions if they are contributing. Everyone pays council tax, no matter what their source of income. Whether your income comes from working, benefits or both, money spent on essential things like rent and council tax still counts as income.

But the benefits that make up most of a lot of people's benefits are not taxable income (tax credits, housing benefit, child benefit) according to this.

A benefits cap of £23k is equivalent to a full time job earning about £29k per year, which is more than most of the population earns and provides a good standard of living in most of the country.

[ghostspirit]

op why do you have 2 threads going that are simlar/about benefits?

are benefits really taxable? yaaaay i been paying my taxs.

[PtolemysNeedle]

Some benefits are taxable, most are not. Here

[thelostboy]

Well, it will bring the cap down to the top end of the salary band for a team leader managing the team who sort out the benefits.

It will be quite a bit more than the staff actually doing the donkey work will be getting.

Just for a different bit of perspective

[karbonfootprint]

I'm a single mum working full time, and don't earn near 23k. I can't see how having your benefits limited to 23k could be a problem really.

[Metalguru]

I thought the cap didn't apply to in-work benefits? Can someone clarify? So ops friend,working part time and presumably on wtc wouldn't be affected?