The Benefit Cap reduction … its here!

The Benefit Cap reduction … its here!

Landlords; do you rely on direct payments of Local Housing Allowance (LHA)? As the following news directly affects YOU!

The benefit cap is the maximum amount of benefit you can receive in a year previously set at £26,000 per year, it’s now being reduced to £23,000 for claimants in London and £20,000 for claimants outside London. (Different rates apply for single people and there are various exemptions and qualifications to this – please see If you receive benefits above the cap level, you will have a cut applied to your Housing Benefit. You will then be responsible to make up the resulting shortfall in your rent from your other benefit income. etc.

Tenants could potentially lose all of their remaining Housing Benefit except for a small token payment of 50 pence per week.

This cap will apply now to all those who have already been capped government is applying the cap to all other cases (those who are being capped for the first time) on a rolling schedule, with each local authority area seeing the full cap come in on different dates.


Local Authorities and Housing Associations across the UK can now access a brand new solution to help many more low income renters find new homes and save public funds, through The Ark Passport.

Whether you are a social or private landlord, protecting your rental income is paramount. The risk of non-payment can be managed in a number of ways, and The Ark allows landlords to manage this risk accordingly.

So please visit for full information.

Got something to say? Please click here to get involved in the live discussion now!

Related topics:

Innovative lettings ‘Passport’ enables councils to house more and save more

91% of landlords less likely to rent to those on benefits via Universal Credit…

Relying on benefits to pay rent will put UK on course for rent capping?

Author: News Feed

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