The Department for Work and Pensions (DWP) has imposed a benefit cap that limits the total amount of benefits a person can receive. This cap applies to most individuals aged 16 or over who have not yet reached State Pension age. However, those receiving certain benefits or who are above State Pension age may not be affected.
How the Benefit Cap Works
Under the cap, couples and single parents with children outside London can receive up to £1,835 per month. For single adults without children, the limit is £1,229.42 per month, which equates to £14,753 per year. If you are claiming Universal Credit, the cap may not apply for the first 9 months, depending on your earnings.
List of Affected Benefits
The benefit cap applies to the following 10 benefits:
- Universal Credit
- Bereavement Allowance
- Child Benefit
- Employment and Support Allowance
- Housing Benefit
- Incapacity Benefit
- Jobseeker’s Allowance
- Maternity Allowance
- Severe Disablement Allowance
- Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if started before 9 April 2001)
Exemptions and Additional Information
Citizens Advice explains: “The Benefit Cap is a limit to the total amount of money you can get from some benefits. If your Universal Credit payment is over a specific amount, the DWP might reduce it to bring it down to a certain level.” The cap does not apply if you are working and earn at least £846 per month after tax. For couples, combined earnings must meet this threshold.
Money Helper adds: “The benefit cap is the maximum amount your household can get in benefits. This means that if you already get the maximum amount your payment will not increase.”
For those living in London, the cap rates are higher: single adults can receive up to £1,413 per month, while single parents with children or couples can get up to £2,110.25 per month.
