Benefit Cap

The Benefit Cap is a limit on the total amount of benefit that most people aged 16 to 64 can receive. This means that households in which no-one works can no longer receive more in benefits than average working families after Tax and National Insurance has been deducted.

Benefit Cap amounts

The benefit cap outside Greater London is:

  • £384.62 per week (£20,000 a year) if you're in a couple
  • £384.62 per week (£20,000 a year) if you're a single parent and your children live with you
  • £257.69 per week (£13,400 a year) if you're a single adult

For more information about the Benefit Cap changes please visit www.Gov.UK/benefit-cap

 

How the Benefit Cap is calculated

The cap is based on the total amount of out of work benefits.

Use the Government calculator to see if you may be affected and check the benefits included within the cap.

Exemptions

The cap will not apply if you, or your partner, receive or qualify for Working Tax Credit. The Benefit Cap will also not apply to you, your partner or children who live with you who have been awarded any of the following benefits:

  • Disability Living Allowance
  • Industrial Injuries Benefits
  • Personal Independence Payment
  • Attendance Allowance
  • Employment and Support Allowance (with the support component)
  • War Widow's or War Widower's Pension
  • A 39 week grace period for any customers who has been in employment for 52 weeks or more when they claim benefit.
  • Customers in receipt of Carers Allowance and Guardians Allowance are expected to become exempt soon. The government have not yet announced when.