The Benefit Cap limits the overall amount of welfare benefits a ‘working age’ household can receive.
The limit means that those people most likely to be affected are those with children and/or a high rent (i.e. those who receive a high amount of welfare) who are not otherwise excluded due to their circumstances.
If you are affected by the Benefit Cap, then the amount you get from Universal Credit will go down to make sure you do not get more than the welfare benefit cap limit.
Who isn’t affected by the Benefit Cap?
The Benefit Cap does not apply to you (ie. you are excluded) if:
- In any Assessment Period you and/or your partner have earned income of £881 or more.
- You, your partner, or a child or young person included in your claim gets Disability Living Allowance / Child Disability Payment, Personal Independence Payment / Adult Disability Payment, Armed Forces Independent Payment, Attendance Allowance / Pension Age Disability Payment or Constant Attendance Allowance.
- You or your partner have been found to have a Limited Capability for Work and Work Related Activity (ie your award includes a LCWRA Element).
See ‘If you have health issues’ for more information. - You or your partner get Industrial Injuries Disablement Benefit.
- You or your partner get a War Disablement Pension, Armed Forces Compensation Scheme payment, or a War Widows’/Widowers’ Pension.
- You or your partner are getting (or have a recognised underlying entitlement to) Carer’s Allowance / Carer Support Payment, or have a Carer Element included when your Universal Credit award is assessed.
See If you are a carer for more information. - You or your partner get paid Guardian’s Allowance.
- You (or you and your partner) have lost your job and you received earnings of at least £881 (or £846 before April 2026) per month in each of the previous 12 months – you will be protected for a ‘grace period’ of 9 months.
How do you work out f the Cap applies?
If you are not getting one of the benefits / in one of the situations that would exclude you from the Benefit Cap, then the Benefit Cap might reduce your Universal Credit.
First the DWP will add together most of the benefits you are entitled to (including Child Benefit) and add them to the Universal Credit award to work out your monthly total welfare figure.
They will then compare this total to the Benefit Cap limit that applies to you:
| Situation | Weekly Amount | Monthly Amount |
| Families with children and couples – in London | £486.98 | £2110.25 |
| Families with children and couples – outside London | £423.46 | £1835.00 |
| Single people – in London | £326.29 | £1413.92 |
| Single people – outside London | £283.71 | £1229.42 |
Example:
Mahia and Para have 3 children aged 15, 13 and 11. They have had difficulty finding work, and their rent is £128.00 per week (which works out at £554.67 per month). They live outside Greater London in a 3 bedroom housing association house.
They are entitled to: Child Benefit = £272.35 per month and Universal Credit = £1,877.46 per month. Their total ‘welfare’ is £2,149.81 per month. As their total welfare income is £314.81 over their benefit cap of £1835 per month, their Universal Credit will be reduced by £314.81 to £1,562.65.
Example:
Shaun lives in Greater London. He lives alone in a one bedroom rented flat. He is looking for work. His rent is £240 a week (which works out at £1040 per month). Universal Credit = £1464.90 per month. His total ‘welfare’ is £1464.90 per month. The Benefit Cap limit which applies to Shaun is £1413.92 per month. His excess income is £50.98 (£1413.92 minus £1413.92). His UC will be reduced by £50.98 – his next payment will be £1,413.92..
NOTE: When the DWP add your benefits together they will not include: any Childcare Costs Element in your Universal Credit award, Council Tax Support, Statutory Sick Pay, Statutory Maternity Pay, Bereavement Support Payment, Housing Payment/Discretionary Housing Payments or Housing Benefit paid on ‘specified accommodation’ (ask a Benefits Adviser if you’re not sure if this applies to you).