Benefit cap
If you’re getting benefits, there may be a cap on the income you can receive. The benefit cap – also known as the welfare cap – was introduced in 2013. It was part of reforms to increase incentives for people to get into work, and reduce government spending on benefits.
Department for Work and Pensions (DWP) figures show 77,000 households had their benefits capped at November 2023.
Table Of Contents
What is the UK benefit cap?
The UK benefit cap is a limit on the total amount of benefits that most working-age households can receive. The value of the cap depends on where you live and if you have a partner or children.
. If your income is above the benefit cap, the amount of Housing Benefit or Universal Credit you receive is reduced.
Who is affected by the benefit cap?
The benefit cap affects most working-age people on benefits. This means those aged 16 or over who have not yet reached state pension age (currently 66).
Who is exempt?
There are a number of exemptions with the benefit cap.
Being in work
You won’t be affected by the cap if you or your partner:
- Are claiming Working Tax Credit (even if you don’t receive a payment)
- Get Universal Credit and you and your partner's monthly combined income is above £793 after tax and National Insurance contributions
- Get Universal Credit because of a disability or health condition that stops you from working
- Get Universal Credit because you care for someone with a disability
The benefit cap is intended to encourage people to work. You are considered “in work” if you are entitled to Working Tax Credit.
You are also “in work” if you receive Universal Credit and earn above a certain amount.
Age
If you’re 15 or younger, or over the state pension age, you’re exempt from the cap.
But if one person in a couple is under the state pension age, the cap may apply.
Supported housing
Some supported accommodation is exempt. Your home must be:
- a resettlement place
- provided by a body that provides you with care, support or supervision
Key benefits
You won’t be affected if you, your partner or any children under 18 who are living with you get any of these benefits:
- Adult Disability Payment
- Armed Forces Compensation Scheme
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- Disability Living Allowance
- Employment and Support Allowance (support component only)
- Guardian’s Allowance
- Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
- Personal Independence Payment (PIP)
- War pensions
- War Widow’s or War Widower’s Pension
What benefits are included in the cap?
There are 14 benefits included in the benefit cap. The DWP adds together the amount you get from each when working out if your income has breached the limit.
The benefits included are:
Bereavement Allowance |
Child Benefit |
|---|---|
Child Tax Credit |
Employment and Support Allowance (ESA) (work-related activity group component only) |
Housing Benefit (except for households in supported exempt accommodation) |
Incapacity Benefit |
Income Support |
Jobseeker’s Allowance (JSA) |
Maternity Allowance |
Severe Disablement Allowance |
Universal Credit |
Widowed Parent’s Allowance |
Widowed Mother’s Allowance |
Widow’s Pension |
What benefits are not included?
There is a long list of benefits that are not included in the UK benefit cap. These range from Pension Credit and free school meals to sick pay and adoption pay. Here’s a list:
- Bereavement payment
- Bereavement support payment
- Budgeting loans
- Cold weather payments
- Council Tax reduction (sometimes called Council Tax support).
- Discretionary housing payments
- Free school meals
- Funeral payments
- Pension Credit
- Local Welfare Assistance payments (England)
- Scottish Welfare Fund payments
- Discretionary Assistance Fund payments (Wales)
- State Retirement Pension
- Statutory Adoption Pay
- Statutory Maternity Pay
- Statutory Paternity Pay
- Statutory Shared Parental Pay
- Statutory Sick Pay
- Sure Start maternity grants
It’s worth adding that child maintenance is not included in the benefit cap. So, if you receive child maintenance, it will not reduce your benefits.
How much is the benefit cap?
The benefit cap depends on whether you live in London, whether you’re single and whether you have children.
Benefit cap inside Greater London
Per Week |
Per Month | |
|---|---|---|
If you’re in a couple |
£486.98 |
£2,110.25 |
If you’re a single parent and your children live with you |
£486.98 |
£2,110.25 |
If you’re a single person |
£326.29 |
£1,413.92 |
Benefit cap outside Greater London
Per Week |
Per Month | |
|---|---|---|
If you’re in a couple |
£423.46 |
£1,835 |
If you’re a single parent and your children live with you |
£423.46 |
£1,835 |
If you’re a single person |
£283.71 |
£1,229.42 |
How is the benefit cap applied and calculated?
The benefit cap is calculated by adding all your benefits together to see if the total is more than the cap.
It is applied by reducing your Housing Benefit or Universal Credit until your income is within the cap.
Universal Credit
If you’re claiming Universal Credit, the income you receive each month is reduced to the cap amount (bar the childcare costs element). Childcare costs are protected. They won’t be cut even if you receive more than the benefit cap.
Bear in mind that the benefit cap might not affect your Universal Credit payments for up to nine months. This is known as the “grace period”. There is more information on how this works on the government website.
Housing Benefit
If you’re claiming Housing Benefit, the weekly amount of Housing Benefit is reduced to bring you inside the cap amount. Here’s an example of how the benefit cap might be applied to someone.
A single parent with four children in London has a weekly income of £413.35 made up of | |
|---|---|
£339.45 |
Income Support |
£76.45 |
Child Benefit |
£108.70 |
Housing Benefit |
£524.60 |
Total Income (Including Housing Benefit) |
This is £37.62 above the benefit cap. So, the woman’s Housing Benefit award is lowered by £37.62 to £71.08 a week.
The Benefit Cap reduces the woman’s weekly income to:
£339.45 |
Income Support |
|---|---|
£76.45 |
Child Benefit |
£71.08 |
Housing Benefit |
£486.98 |
Total Income (Including Housing Benefit) |
How to check if you are affected by the cap
You can use a benefits calculator to work out if you’re affected by the cap.
You can also contact Moneyhelper or Citizens Advice if you need help working out how the benefit cap will affect you.
What to do if you are affected
If you’re affected by the benefit cap and need help, contact the DWP or your local council.
For Universal Credit, contact the DWP through:
- Your journal in your online account. The journal is where you message your work coach.
- Call the Universal Credit helpline (0800 328 5644, Monday to Friday, 8am to 6pm).
If you don’t get Universal Credit, call the Benefit Cap Helpline (0800 169 0145, Monday to Friday, 8am to 6pm).
If you’re struggling to pay your rent or a rent deposit, get in touch with your local council. You may be eligible for a discretionary housing payment that is not affected by the benefit cap.
You should also speak to your landlord. Explain your situation and find out what options are open to you.
If you rent a social housing property, your council or housing association might offer you a cheaper property.
Charities such as Citizens Advice, Turn2us, Entitledto have lots of helpful information about how the benefit cap works and what to do if it affects you.
Summary: Navigating the UK benefit cap
Navigating the benefit cap can seem complex and confusing. It has been controversial since it was introduced just over a decade ago. However, there is help out there.
You can take action to boost your income and to reduce your outgoings. This includes applying for more work if you can, making a budget and cutting your household costs such as energy bills.