AROUND 100,000 families could lose up to £1,840 in cash because of the benefit cap.
The benefit cap limits how much people can claim, and 100,000 people were subject to the cap in November, according to latest figures from the Department for Work and Pensions.
The benefit cap is set at £20,000 a year for families, or £23,000 in London.
For individuals, the limit is £13,400 a year – or £15,410 for those living in the capital.
Universal Credit counts towards the cap, along with other benefits like child benefit, housing benefit and jobseekers allowance.
There are some cases when the benefit cap does not apply – for example if you’re entitled to working tax credits.
And Universal Credit claimants are exempt from the benefit cap if they earn £617 or more per month.
If your benefit payments are more than the cap then your Universal Credit or Housing Benefit is reduced.
But thousands of families subject to the cap could lose out on thousands from April.
While most benefit rates will rise by 3.1% from this point, those subject to the cap will not see their benefits increase at all.
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The latest data from the government shows 28,000 capped families in London will be losing out by £1,840 and 77,000 living outside the capital will miss out on £1,600.
It means on average, the estimated average monthly amount lost is £235 because of the cap.
Child Poverty Action Group Alison Garnham said the losses that low income families suffer as a result of the cap is “huge”.
She said: “The benefit cap is a cruel policy at the best of times, forcing families the most in need to get by on the least. But as costs increase dramatically it is a gut punch, abandoning thousands to financial misery.
“Government must remove the cap before it damages more children’s lives.”
While even Brits who see their benefit rates rise in April will struggle to make their cash stretch as far.
That’s because inflation is running at 5.5% and is expected to reach higher than 8% this year experts believe.
The annual uprating of benefit rates is based on inflation rates for September – which was much lower at 3.1%.
Here’s the full list of benefits rising from April.
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