Benefit Cap

There’s a limit to the total amount of benefit you can get. This is called the benefit cap.

• If you’re over 16 and under State Pension age, there might be a limit on the total amount of benefit your household can get. This is called the benefit cap.

If your income is above this limit, your Housing Benefit or Universal Credit might be reduced.

How much is the benefit cap?

There are different limits, depending on whether you live in our area for 2022/23:

£1,666.67 a month (£384.62 a week) if:

• your household is made up of a couple (with or without children), or
• you’re a lone parent (and you have children living with you who you’re responsible for when working out your Housing Benefit)

£1,116.67 a month (£257.69 a week) outside London (rates are 2022/23) if you’re a single person and:

• you have no children, or
• you don’t have children living with you who you’re responsible for when working out your Housing Benefit
  
  

Benefit cap exemptions

You won’t be affected by the benefit cap if you or your partner:

• are claiming Working Tax Credit, even if you have a nil award. Find out more on the GOV.UK website
• are over Pension Credit age. Check your State Pension age on the GOV.UK website
• get Universal Credit because of a disability or health condition that stops you from working. Or because you care for someone with a disability
• get Universal Credit and your household’s monthly income is more than £604 after tax and National Insurance contributions.

You won’t be affected by the benefit cap if you, your partner or any children under 18 who are living with you get any of these benefits:

• Armed Forces Compensation Scheme
• Armed Forces Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Disability Living Allowance
• Employment and Support Allowance (if you get the support component)
• Guardian’s Allowance
• Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
• Personal Independence Payment (PIP)
• War pensions
• War Widow’s or War Widower’s Pension.

If you’re not claiming any of these benefits and think you might be entitled to, it might be worth making a claim.

The benefit cap affects the following benefits

The following benefits are included when working out whether your total benefit income is more than the cap:

• Bereavement Allowance
• Child Benefit
• Child Tax Credit
• Employment and Support Allowance (if you get the work-related activity group component))
• Housing Benefit
• Incapacity Benefit
• Income Support
• Jobseeker’s Allowance
• Maternity Allowance
• Severe Disablement Allowance
• Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widows Pension if you started getting it before 9 April 2001)
• Universal Credit (unless you’ve had a work capability assessment and aren’t fit for work)
  
  

Which benefits aren’t included in the benefit cap?

• Bereavement payment (the new bereavement support payment will also be disregarded)
• Budgeting loans
• Cold weather payments
• Council Tax reduction
• Discretionary housing payments
• Free school meals
• Funeral payments
• Pension credit
• Local Welfare Assistance payments (England)
• Scottish Welfare Fund payments
• Discretionary Assistance Fund payments (Wales)
• State Retirement Pension
• Statutory Adoption Pay
• Statutory Maternity Pay
• Statutory Paternity Pay
• Statutory Shared Parental Pay
• Statutory Sick Pay
• Sure Start maternity grants.

If you are affected by the benefit cap and are worried about finding the money to pay your rent, please get in touch and we can look at your options.