The benefit cap

Last updated: 12/01/2022

The benefit cap is a limit on the total amount of benefits you can be paid each year. If the benefits you get add up to more than the benefit cap you will not be paid the full amount.

How much is the benefit cap?

The benefit cap is £20,000 per annum (£1,667 per month) for a couple or single parent household and £13,400 per annum (£1,117 per month) for single people.

Benefits included in the cap are:-

  • Bereavement Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Universal Credit
  • Widowed Parent’s Allowance
  • Widow’s Benefit

How will the amount over the benefit cap be deducted?

All the benefits you are getting will be added up and any amount over the benefit cap will be deducted from your Universal Credit.

If you lose your job, but have earned above £617 in the previous 12 months, the cap will not affect you for the next 9 months.

People not affected by the benefit cap

You will not be affected by the benefit cap if:

  • You are over pension age
  • Your earnings from employment is above £617.
  • You receive carer’s allowance, the carer’s element in universal credit or have an underlying entitlement to them,
  • You, or any children in your family under 18, get War Widow or Widowers’ Pension, Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Industrial Injuries Benefits, Guardian’s Allowance, the support component of Employment and Support Allowance or the limited capability for work- and work-related activity element of Universal Credit. You are also not affected if you are in the Armed Forces Compensation Scheme or get the Armed Forces Independence Payment.

 

For more information visit Benefit Cap