The Benefit Cap

If you’re working age there may be a limit on the total amount of benefit your household can get. This is called a benefit cap.

How does the benefit cap work?
If you’re getting certain benefits, there may be a limit to how much income you can get. If your income goes above this amount, your Housing Benefit or Universal Credit is reduced until your income falls below the limit.

If you are a couple or have children your benefit cap is currently £500 per week. The limit for single people with no children is £350 per week.

From Autumn 2016 the benefit cap is going to be reduced and will be set as follows:

  • £384.62 per week if you are a couple or have children
  • £257.69 per week if you are a single person


Which benefits are included in the benefit cap?

  • Bereavement allowance
  • Child Benefit
  • Child Tax Credit
  • Job Seeker’s Allowance
  • Incapacity Benefit
  • Income Support
  • Employment Support Allowance
    (except those in the Support Group)
  • Universal Credit
  • Maternity Allowance
  • Severe Disablement Allowance
  • Widowed Parents Allowance
  • Widowed Mother’s Allowance
  • Widow’s pension including the
    age-related component


Which benefits exclude you from the benefit cap

You won’t be affected by the benefit cap if you or anyone in your household qualifies for any of the following benefits:

  • Working Tax Credit
  • Carer’s Allowance
  • Disability Living Allowance
  • Personal Independence Payment
  • Armed Forces Compensation Scheme
  • Support Group of Employment
    Support Allowance
  • You have reached the age to qualify
    for state pension credit
  • Guardian’s Allowance

  • Industrial Injuries Benefit
  • War pension
  • Attendance Allowance
  • Armed Forces Independent Payment
  • War Widow’s or War Widower’s pension
  • Claim Universal Credit and you or your
    partner are working (self-employed and
    employed) and you earn at least £430 in
    your Universal Credit monthly assessment


If you’re worried about the reduction in your benefits then please contact the
Financial Inclusion Team on 01639 506623.