What is the Benefit Cap?
The benefit cap is a limit on the total amount of certain welfare benefits a household can receive each week. If the total value of the benefits you receive exceeds the cap, your Universal Credit housing element (or Housing Benefit if applicable) will be reduced to bring your total below the limit.
How Much is the Cap?
The benefit cap levels for 2024/25 are: £442.31 per week (£23,000/year) for families with children and couples, and £296.35 per week (£15,410/year) for single adults without children. Note: higher caps apply to people living in Greater London.
Which Benefits are Included?
Benefits included in the cap calculation include: Universal Credit (standard allowance + child elements + carer element + housing element), Housing Benefit, Child Benefit, Child Tax Credit, Jobseeker's Allowance, Income Support, and others. Some benefits are excluded, including: Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, and Working Tax Credit.
Exemptions
You are exempt from the benefit cap if you or a partner receive: Working Tax Credit (if in work), Universal Credit (if earning above the work allowance threshold), Employment and Support Allowance (support group), PIP/DLA daily living component, or Carer's Allowance.
How it Affects Housing
If you are capped, your housing benefit/UC housing element will be reduced. This can make it harder to afford rent in higher-cost areas. However, in affordable areas like many parts of Staffordshire and Cheshire, Local Housing Allowance rates and managed social accommodation rents from providers like Axient Housing are often within cap limits.