What is the benefit cap?
This is a limit on how much a non-working or low earning household can receive in certain benefits.
In the benefits system, a household is defined as an adult, their partner (if they have one) and any dependent children. Other relatives living in the same home such as adult children, brothers or sisters would not be considered to be part of the ‘household’ referred to for the purpose of the benefit cap, even if they live in the same home.
The benefit cap applies to 'working-age households', and can reduce the amount of Housing Benefit or Universal Credit you are awarded towards any eligible housing costs. This means if you are affected by the cap, you will need to make up any rent/housing cost shortfall from the benefits you receive. If you are not getting Housing Benefit or Universal Credit, the cap won’t apply to you.
The amounts vary depending on whether you live in London or not as well as some other factors (see below):
- £423.46 a week if you are a couple (with or without children) or are a single claimant with a child of qualifying age who lives with you outside London (£22,020 per year)
- £283.71 a week if you are a single adult without children and live outside London (£14,753 per year)
Greater London area:
- £486.98 a week if you are a couple (with or without children) or are a single claimant with a child of qualifying age who lives with you in London (£25,323 per year)
- £326.29 a week if you are a single person without children and live in London (£16,967 per year)
The GOV.UK site has a benefit cap calculator that could help you find out how much your benefit could be capped.
You will be exempt from the cap if, for example, you’re receiving:
- Carer’s Allowance/ Carer Support Payment
- the underlying entitlement to Carer’s Allowance
- or a Carer Element within Universal Credit.
- disability benefits such as Personal Independence Payment or Disability Living Allowance.
These are just a few examples. See this page for the list of exemptions: Benefit cap: When you're not affected - GOV.UK.
‘Grace period’
You can be exempt for a “grace period” of 39 weeks if you or your partner were in work and earning over a certain amount (both employed and self-employed) for at least 50 weeks out of the last 52 weeks before the last day of work, and you or your partner were not getting Jobseeker’s Allowance, Income Support or Employment and Support Allowance.