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Benefit Cap

Many benefit changes have taken place due to the Welfare Reform Act 2012. Changes were made in respect of the maximum amount of Welfare Benefits a customer can receive.

The Benefit Cap was introduced to ensure that customers on benefits do not receive a greater income than the average working family. These rates are now;

• £384.62 per week (£20,000 a year) if you’re in a couple, whether your children live with you or not

• £384.62 per week (£20,000 a year) if you’re single and your children live with you

• £257.69 per week (£13,400 a year) if you’re single and you don’t have children, or your children don’t live with you.

Income used in Calculation

Below is a list of the income that will be used in the calculation for a benefit cap:

• Out-of-work benefits (Jobseeker's Allowance, Income Support and Employment and Support Allowance, except where the Support Component is in payment)

• Housing Benefit

• Child Benefit and Child Tax Credit

• Universal Credit

• Other benefits such as Maternity Allowance.

Where a member of the household is receiving the income detailed below then they will not be subject to the cap and can potentially claim an amount above these levels. These incomes are:

• You’re not affected by the cap if anyone in your household qualifies for Working Tax Credit or gets any of the following benefits on gov.uk:

  • Armed Forces Compensation Scheme

  • Armed Forces Independence Payment on Veterans UK (external link)

  • Attendance Allowance

  • Carer’s Allowance

  • Disability Living Allowance (DLA)

  • 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)

  • Universal Credit Payments towards carer’s costs or for ‘limited capability for work and work-related activity

  • War pensions

  • War Widow’s or War Widower’s Pension

  If you have adult children or non-dependants living with you and they qualify for any of these benefits, you may be affected by the cap. This is because they’re not usually included in your household.

The Benefit Cap Calculator  can be used to find out if the benefit cap will affect you.

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