How do we stop the benefit cap please?

Mimikyu

I don't like to talk about money but I really could do with some help.

The benefit cap is £1666
My rent is £1450 a month
I get some council tax support but still have to pay £76 a month

I've struggled since 2019 like this since I changed to UC. 

What can I do please? How do we stop being benefit capped?

poppy123456

Receiving certain benefits will exclude you from the benefit cap. For example, PIP/DLA, ESA Support Group, claiming either carers element of UC or carers allowance, LCWRA for UC and may other benefits. See full list here.  https://www.gov.uk/benefit-cap/when-youre-not-affected Does your UC include either the LCWRA element, carers element or disabled child element?

 

Are you sure the benefit cap applies here. Is your home privately rented or social housing? Do you live with others or by yourself? If privately renting your rent entitlement will depend on the Local housing allowance in the area you live and it very often doesn't cover the whole of your rent so you have to make up the shortfall.

Council tax reduction isn't part of the benefit cap. https://www.gov.uk/benefit-cap

Mimikyu

This is what my recent statement says

Standard allowance: £525.72
Housing: £1450 (I rent from housing association)
Children: £1023.74 (I have 4)
LCW: 132.89
Total: £3506.32

Deductions:
- £373.97 other income
- £1747.99 Benefit Cap

Total: £1384.36 UC award, which doesn't even cover my rent

poppy123456

Ah yes, thanks for that. Unfortunately, LCW doesn't exclude you from the benefit cap. May i ask what the other income is related to? (just want to check they are correct to deduct this because they are not always correct)

You can apply for a discretionary housing payment (DHP) it's not guaranteed and if it is awarded it's usually only for a short period of time before you have to reapply. https://www.gov.uk/government/publications/claiming-discretionary-housing-payments/claiming-discretionary-housing-payments

If your health condition limits your daily life have you looked into claiming PIP? https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/pip/

Mimikyu

The other income deducted is my PIP, standard living and mobility. When I first went to UC I asked if I should be capped because I get PIP and then they told me to report that as other income so deduct that too. They explained my cap amount would be higher if they didn't deduct PIP so it helps me but I can't see how really.

poppy123456

Mimikyu said:

The other income deducted is my PIP, standard living and mobility. When I first went to UC I asked if I should be capped because I get PIP and then they told me to report that as other income so deduct that too. 

Then i'm so glad i asked. This is not correct, PIP isn't means tested so it should definitely not be deducted from your UC. Reporting it as other income was also very poor advice indeed because it's not classed as other income.

Also because you're claiming PIP you are excluded from the benefit cap. See link. https://www.gov.uk/benefit-cap/when-youre-not-affected

I'd advise you to put a message on your journal under the payment section and tell them that the £373.97 deduction is incorrect because PIP isn't means tested. Also include that you're claiming PIP so the benefit cap should not apply to you.

My goodness, i've heard of some dreadful stories and this is definitely one of them. I can't even begin to imagine just how many people are not claiming what they're entitled to because UC get it so wrong, so many times.

When were you awarded PIP? and when did that claim start?

As you're living with your partner, if they care for you for at least 35 hours per week they can also claim carers element. They need to report a change of circumstances and tell them they care for you for at least 35 hours per week. Your UC maximum entitlement will then increase by £168.81/month.

Sorry for all the questions!

poppy123456

Just wanted to add further to this after checking the PIP rates. £373.97 is not the anmount for standard daily living and standard mobility. Both parts add up to £345.20/week.

PIP amounts

	Lower weekly rate	Higher weekly rate
Daily living part	£61.85	£92.40
Mobility part	£24.45	£64.50

Do you have any other income you've forgotten about? The benefit cap reduction is still not correct though because of your PIP award.

Mimikyu

Oh goodness I can't remember when my PIP claim started, I've been on DLA and then PIP for many years. 
I claimed UC in 2019 when my partner moved in as they said he couldn't be added to ESA and then his 2 children came to live with us in 2020. But I've been capped the whole time. 

I've added what you said to my journal but I can't see them changing it. 

With the carer element they said he can not claim that for caring for me because we're partners. Is that not correct?

Why haven't they noticed this or said anything? I can't even begin to explain how much we've struggled and how much debt we're in because of the benefit cap all this time

Mimikyu

poppy123456 said:

Just wanted to add further to this after checking the PIP rates. £373.97 is not the anmount for standard daily living and standard mobility. Both parts add up to £345.20/week.

PIP amounts

	Lower weekly rate	Higher weekly rate
Daily living part	£61.85	£92.40
Mobility part	£24.45	£64.50

I've queried the amount in the past and they said it's because they calculate it monthly and do my statement manually each month.
Let me find the calculation they shared to me in May last year.

Mimikyu

"MY NAME as explained before Universal Credit is a monthly benefit so we look at your income monthly. Your PIP is calculated as £61.85 + £24.45 = £86.30. This is then multiplied by 52 to make £4487.60 and then divided by 12 to make £373.97 which is the amount we deduct. If you would like to stop the benefit cap then you or your husband need to be in employment."

poppy123456

Then that amount does make sense. What doesn't make sense is it's being deducted when it shouldn't be.

Mimikyu said:

I've added what you said to my journal but I can't see them changing it. 

Then you'll need to contact your Local MP if they refuse to correct your award. If they don't answer your message then i'd advise you to request the Mandatory Reconsideration on the decision not to exclude you from the benefit cap and for deducting your PIP from the UC.

It should all be backdated to the date you claimed UC, regardless of how much that is.

Yes, i can just imagine the struggle, that's a huge amount of money to lose out on!

Mimikyu said:

With the carer element they said he can not claim that for caring for me because we're partners. Is that not correct?

Again that advice is quite shocking! Of course it's not correct. A partner is not excluded from claiming carers element for looking after you.

Mimikyu said:

If you would like to stop the benefit cap then you or your husband need to be in employment."

That's completely incorrect. As you can see from the links i posted, claiming certain benefits also excludes you from the benefit cap.

If it was me then i'd also be putting in a complaint about the advice you've been given, you have proof on your journal. If you had been given the correct advice you wouldn't have been left in fianancial hardship for all this time. See link for more information. https://england.shelter.org.uk/housing_advice/benefits/how_to_complain_about_universal_credit

I think i need another cuppa to recover from the shock of the terrible advice you've been given! I'm very glad you posted here!

Mimikyu

Sorry for another question but they've replied to my message already and said "When would you like to report this change from?" I don't understand because it isn't a change it's how it has always been. What date do I give them? 

If they stopped the cap would I really receive the full amount without deductions for PIP or anything?

Mimikyu

poppy123456 said:

It should all be backdated to the date you claimed UC, regardless of how much that is.

Would they really do this? It's over £2000 a month for nearly 4 years

poppy123456

Mimikyu said:

Sorry for another question but they've replied to my message already and said "When would you like to report this change from?" I don't understand because it isn't a change it's how it has always been. What date do I give them? 

Please don't be sorry. If you were claiming either DLA or PIP when your UC claim started then it will be from this date.

Mimikyu said:

If they stopped the cap would I really receive the full amount without deductions for PIP or anything?

Yes, absolutely because the calculation is incorrect, the PIP isn't classed as other income and you shouldn't have been affected by the benefit cap. You will be owed all the money from the start of your claim.

I remember quite sometime ago that someone posted here for some advice and it turned out that her UC calculation was incorrect and this person was given some advice. They returned some weeks later to give and update and they were owed inexcess of £30,000 (can't remember the exact amount) and had received all the money that was owed.

Mimikyu

I'm crying at the thought of not being capped any more anything else would be a bonus. 
I'm so glad I posted as I'd never have known. I've posted back to them about it being from the start and that if they check my journal they can see that they've always known about PIP. 
I also asked them to sort out the carers for my partner but now worrying that will complicate things?

poppy123456

It shouldn't be complicated at all. They will need to recalculate all of your past statements before they can work out exactly how much is owed. When they do this your new statements will replace the old ones so because it's such a long time then i would advise you to take screenshots of your current statements so you have them to refer to.

For the carers element, you need to ask your partner to "report a change of circumstances" on their journal and then report being your carer.

poppy123456

It's incredible to think how on earth they've got this so wrong. If it's 3 years that you've claimed UC with all those deductions then that's a serious amount of money that you're owed.

I can't even begin to imagine just how much you and your family have struggled over those years and even more so now with cost of living being so high.

Threads like this make all the time i spend here (freely) so worth it when i can sit here and help someone like yourself.

janer1967

This is a disgusting example of dwp getting it wrong and causing financial hardship ..how do they do it the person who did this needs some action taking and other clients they are responsible for details checking 

Mimikyu

UC replied and said they can't make a change out of my current assessment period but I won't be capped going forward. My next pay day is in 4 days will that one be capped still? 

Thank you for your help I didn't think it would be possible to get the cap lifted so quickly

poppy123456

Mimikyu said:

UC replied and said they can't make a change out of my current assessment period but I won't be capped going forward.

I completely disagree with that! I'd advise you to request the Mandatory Reconsideration. (MR) of the decision not to remove the benefit cap to the date in which you first claimed UC.

Also mention your PIP being down as other income and being deducted from your UC which is also incorrect, it shouldn't be deducted.

Mimikyu said:

 My next pay day is in 4 days will that one be capped still? 

That will depend whether you've received your monthly statement yet.

You're welcome, glad i was here to help.

calcotti

As advised by poppy, you should definitely request a Mandatory Reconsideration to review your all of your UC payments since you were awarded PIP. They should never have told you to report PIP as other income and they should not have applied the benefit cap since the PIP award.Mimikyu said:

"MY NAME as explained before Universal Credit is a monthly benefit so we look at your income monthly. Your PIP is calculated as £61.85 + £24.45 = £86.30. This is then multiplied by 52 to make £4487.60 and then divided by 12 to make £373.97 which is the amount we deduct. If you would like to stop the benefit cap then you or your husband need to be in employment."

It is absolutely shocking that anybody at UC could type that explanation without realising a mistake had been made because PIP is ignored and to then say that about the benefit cap at th end of a paragraph about you getting PIP is unbelievable.

poppy123456 said:
My goodness, i've heard of some dreadful stories and this is definitely one of them. I can't even begin to imagine just how many people are not claiming what they're entitled to because UC get it so wrong, so many times. 

Absolutely agree - although the thread a while back with UC refusing to add children and disabled child elements due to the two child limit even though it didn't apply may the worst I have seen on this forum. Absolutely awful evidence of lack of training and understanding. Yes it can be complex but UC staff only have to know about one benefit whereas generalist benefits advisers have to know all benefits in both UC and legacy benefits (and actually treatment of PIP and application of the benefit cap isn't complex - it's basic stuff.)

Mimikyu said:

My next pay day is in 4 days will that one be capped still? 

It think it's likely that they don't have time to correct the payment before it is processed.

Note that when they recalculate past entitlement they will produce nw statements. These will overwrite the previous statements. I suggest that you download copies of all your existing statements now in case you need to refer to them in the future.

poppy123456 said:

I think i need another cuppa to recover from the shock of the terrible advice you've been given! I'm very glad you posted here!

You deserve more than that - have a piece of cake if you've got some in the house.

Depressing to know that there will many claimants who are incorrectly paid and who will never find out.