What is the benefit cap?

As part of the Government's Welfare Reform changes, the total amount of benefit that can be received will be a set amount for both single people and couples. This is called the benefit cap.

The benefit cap was brought in to make sure that no family received more in benefits than the average working household.

The cap is currently

£384.62 a week if you are a couple or have children

£257.69 a week if you are a single person


Which benefits are included in the benefit cap?

Universal Credit

Jobseeker's Allowance

Employment Support Allowance

Housing Benefit

Child Benefit

Child Tax Credit

Carers Allowance

Bereavement Allowance

Widowed Parents Allowance

Incapacity Benefit

Income Support

Maternity Allowance

Severe Disablement Allowance (SDA)

Widow’s Pension

Which benefits are not included in the benefit cap?

If you or a member of your household are receiving one of the benefits below then the benefit cap will not apply to you:

Working Tax Credits

Disability Living Allowance / PIP

War Widows / widowers benefits

Attendance allowance

Armed Forces compensation scheme payments

Industrial Injuries Benefits

Carers Allowance


Which benefits will be reduced if I am affected by the benefit cap?

If you receive Housing Benefit this will be reduced by the amount you are over the cap. If your Housing Benefit entitlement is reduced due to the cap amount, you will receive at least 50p of your Housing Benefit entitlement.

For example, a couple receives £585 in benefits and their Housing Benefit entitlement is £100, the cap  for this couple is £384.62. That will mean they are now £200.38 over the cap and their Housing Benefit entitlement will reduce to 50p.

If you receive Universal Credit your entitlement will be reduced by the amount that you are over the cap.

If you would like confidential advice or more information from our  Money Advisors, please contact either Beverley Hiden or Naomi Inman on  01386 420800