Benefit Cap

The benefit cap is a limit to the total amount of benefits you can receive if you are working age. It applies in England, Scotland and Wales.

The benefit cap usually applies if you are receiving:

• Universal Credit
• Housing Benefit

It can also apply to Child Benefit, Maternity Allowance and legacy benefits. A full list of benefits affected by the cap is available here.

Some people are exempt from the benefit cap including people who are in receipt of certain benefits because they are disabled or caring for a disabled person and some people who are working or who have recently stopped working.

When the benefit cap does not apply

If you are claiming Universal Credit the benefit cap does not apply if you or your partner are working and:

• Earn at least £846 a month after tax and National Insurance. This is the equivalent of working 16 hours per week at National Living Wage.

If you are claiming Universal Credit and have recently stopped working you will get a grace period where the benefit cap does not apply for 9 months if:

• You or your partner earned at least £846 a month after tax and National Insurance (the equivalent of working 16 hours per week at National Living Wage) for each of the previous 12 months.

If you are claiming Universal Credit you are also not affected by the benefit cap if you or your partner get:

• The limited capability for work and work-related activity element (LCWRA) of Universal Credit
• The carer’s element of Universal Credit

The benefit cap also does not apply if you, your partner or any children under 18 are getting:

• Personal Independence Payment
• Adult Disability Payment (Scotland)
• Disability Living Allowance
• Child Disability Payment (Scotland)
• Attendance Allowance
• Pension Age Disability Payment (Scotland)
• Carer’s Allowance
• Carer Support Payment (Scotland)
• The support component of Employment and Support Allowance
• Guardian’s Allowance
• Armed Forces Compensation Scheme or Armed Forces Independence Payment
• Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
• War pensions
• War Widow’s or War Widower’s Pension

If you are over State Pension age the benefit cap does not apply. However, if you live with a partner and only one of you is over State Pension age you may be affected by the benefit cap. Age UK may be able to advise if you are unsure if the benefit cap applies to you.

Benefit Cap Amount

The limit to the amount of the benefit cap depends on whether:

• You live in or outside of Greater London
• You’re single or in a couple
• You have children who live with you

If you live outside Greater London the benefit cap amounts are:

If you live inside Greater London the benefit cap amounts are:

How your benefits are affected

If the benefit cap applies to you, you cannot receive more in benefits than the benefit cap amount for your circumstances. If your benefit entitlement is more than the benefit cap amount, your benefits are reduced to bring you within the benefit cap amount.

If you are getting Universal Credit, the amount you receive, including any housing costs element, will be reduced to bring you within the cap. However, the childcare costs element is protected and is not affected by the cap.

Options if you’re affected by the benefit cap

Check that you are receiving all the benefits that you are entitled to using an online benefits calculator.

You can also use the following tool to check if you are eligible for any grants.

See if you can start work or increase your hours to become exempt from the benefit cap. The benefit cap does not apply if you or your partner work and earn at least £846 a month after tax and National Insurance. This is the equivalent of working 16 hours per week at National Living Wage.

If you are getting the housing costs element of Universal Credit or Housing Benefit you may be eligible for a Discretionary Housing Payment (DHP) from your local council. Your council will assess your circumstances to decide whether you are eligible for a DHP, how much you can get and how long you will receive the payment.

If you’re struggling to pay your rent it may also be worth seeing if you can find cheaper accommodation or asking if your landlord will agree to reduce your rent. Contact Shelter if you need housing advice.

If you need emergency financial assistance your local council may be able to help. In England you may be eligible for help through the Household Support Fund. In Scotland you may be eligible for help from the Scottish Welfare Fund. In Wales you might be entitled to help through the Discretionary Assistance Fund.

If you’re struggling to pay your bills there may be additional help available. Citizens Advice may be able to advise you on your options. See the Citizens Advice website for information on help with bil:

• In England
• In Scotland
• In Wales

This advice applies in England, Wales and Scotland. If you live in another part of the UK, the law may differ. Please call our helpline for more details. If you are in Northern Ireland you can visit the Labour Relations Agency or call their helpline Workplace Information Service on 03300 555 300.

If you have further questions and would like to contact our advice team please use our advice contact form below or call us.

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