What Is the Benefit Cap?
The benefit cap is a limit on the total amount of certain welfare benefits that working-age households can receive each week. If a household’s combined benefit income exceeds the cap, the government reduces one or more benefits, usually Universal Credit or Housing Benefit, to bring the total income down to the capped level.
The cap was introduced to ensure that households receiving benefits are not financially better off than the average working household in their area. It applies across England, Wales, Scotland, and Northern Ireland, although the cap amounts differ between London and the rest of the UK.
Benefit Cap Rates 2025/26
The benefit cap amounts for 2025/26 are:
| Household Type | Weekly Cap – London | Annual Cap – London | Weekly Cap – Outside London | Annual Cap – Outside London |
|---|---|---|---|---|
| Couples, with or without children | £572.05 | £29,747 | £471.75 | £24,533 |
| Single parents with children | £572.05 | £29,747 | £471.75 | £24,533 |
| Single adults with no children | £383.90 | £19,963 | £317.82 | £16,527 |
These figures represent the maximum total weekly benefit income from benefits included in the cap. Any amount above the relevant limit is normally deducted from Universal Credit or Housing Benefit.
Which Benefits Count Towards the Benefit Cap?
The following benefits are included in the benefit cap calculation:
- Universal Credit, including the housing and child elements
- Housing Benefit for people who are not receiving Universal Credit
- Child Benefit
- Child Tax Credit
- Working Tax Credit where applicable alongside other capped benefits
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA) in the work-related activity group
- Maternity Allowance
- Bereavement Allowance
- Widowed Parent’s Allowance
- Incapacity Benefit
- Severe Disablement Allowance
Benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), and Council Tax Reduction are not included in the cap calculation, although they may interact with other benefits.
Which Benefits Are Excluded from the Cap?
The following benefits and support are not counted towards the benefit cap:
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Attendance Allowance
- Career’s Allowance as a standalone benefit
- Statutory Sick Pay (SSP)
- Free School Meals
- Council Tax Reduction or Support
- Free childcare hours
- Support for Mortgage Interest (SMI)
Who Is Exempt from the Benefit Cap?
Some households are completely exempt from the benefit cap. The cap does not apply if a household member:
- Is working and earns enough to qualify for Working Tax Credit or meets the relevant Universal Credit work requirements
- Receives Personal Independence Payment (PIP)
- Receives Disability Living Allowance (DLA)
- Receives Attendance Allowance
- Receives ESA in the Support Group
- Receives the Limited Capability for Work and Work-Related Activity (LCWRA) element of Universal Credit
- Receives Career’s Allowance
- Is a veteran receiving a War Pension or Armed Forces Compensation Scheme payments
- Is over State Pension age
There is also a nine-month grace period following a period of continuous employment of at least 12 months. This can give people who lose their job time to look for work before the benefit cap affects their payments.
How Does the Benefit Cap Affect Universal Credit?
For households receiving Universal Credit, the cap is normally applied by reducing the Universal Credit award.
If your Universal Credit, including the housing and child elements, plus other capped benefits exceeds the applicable limit, your Universal Credit payment can be reduced by the excess amount.
Example:
A single parent living outside London receives:
- Universal Credit: £380 per week
- Child Benefit: £120 per week
- Total capped benefits: £500 per week
- Benefit cap: £471.75 per week
The excess is:
£500 − £471.75 = £28.25 per week
Therefore, the Universal Credit payment could be reduced by £28.25 per week.
What Can You Do If the Benefit Cap Affects You?
If the benefit cap is reducing your payments, there are several options you can explore:
Work and Increase Your Earnings
Increasing your earnings to the relevant level may mean that the benefit cap no longer applies, depending on your circumstances.
Apply for a Discretionary Housing Payment
Your local council may provide a Discretionary Housing Payment (DHP) if the benefit cap is causing serious financial difficulty. These payments are generally intended as short-term support.
Check Your Disability Benefit Entitlement
If you or someone in your household has a disability or qualifying health condition, you may be entitled to benefits such as PIP or DLA. Certain disability benefits can exempt a household from the benefit cap.
Get Advice About Your Benefits
You can contact your local council or Citizens Advice to check whether the benefit cap has been correctly applied and whether you may qualify for additional support.
Review Your Childcare Arrangements
Eligible childcare costs can affect your Universal Credit calculation and may help reduce the financial impact of the cap in some circumstances.
The Benefit Cap and the Two-Child Limit
The benefit cap and the two-child limit are separate policies, but they can affect the same household.
The two-child limit restricts the Universal Credit child element and Child Tax Credit for certain children born on or after 6 April 2017. Exceptions can apply in circumstances such as multiple births and adoption.
A larger family could therefore be affected by both the two-child limit and the benefit cap at the same time.
Frequently Asked Questions: Benefit Cap UK
Does the Benefit Cap Apply in Scotland?
Yes. The benefit cap applies across the UK, including Scotland.
However, the Scottish Government has powers over certain benefits through Social Security Scotland, and additional local or discretionary support may be available in some circumstances.
Can I Appeal the Benefit Cap?
You cannot normally appeal the benefit cap simply because it affects your household.
However, if you believe the cap has been applied incorrectly—for example, because you believe you qualify for an exemption—you can ask the DWP for a mandatory reconsideration.
Does the Benefit Cap Affect Child Benefit?
Yes. Child Benefit can count towards the benefit cap, but Child Benefit itself is not normally reduced.
Instead, another capped benefit, such as Universal Credit or Housing Benefit, may be reduced to bring the household’s total capped benefits within the applicable limit.
Is the Benefit Cap the Same Everywhere in the UK?
No. The cap is higher in London than outside London.
Different maximum amounts apply to London households, while lower limits apply outside London across England, Wales, Scotland, and Northern Ireland.