Benefit cap

The benefit cap is a limit on the total amount of some benefits you can get. It applies to people aged 16 or over who have not reached State Pension age.

How the benefit cap will affect you

Benefits that count towards the benefit cap

Benefits that do not count towards the benefit cap

Who the benefit cap does not apply to

What you should do now

Options to deal with the benefit cap

If you are affected by the benefit cap

Useful contacts

How the benefit cap will affect you

The benefit cap your household can receive is:

  • £423.46 a week (£1,835 a month) if you’re a couple – with or without dependent children
  • £423.46 a week (£1,835 a month) if you’re a lone parent with dependent children
  • £283.71 a week (£1,229.42 a month) if you’re a single person without children

Your household includes you, your partner and any children you are responsible for and who live with you. it does not include non-dependents or their income.

Benefits that count towards the benefit cap

The below benefits count towards the benefit cap only, no other benefits are counted:

  • Universal Credit
  • Housing Benefit
  • Child Benefit
  • Income Support
  • Maternity Allowance
  • Jobseeker’s Allowance
  • Employment and Support Allowance
  • Incapacity Benefit
  • Severe Disablement Allowance
  • Bereavement Allowance
  • Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)

If the total you receive in the benefits above are more than the benefit cap that applies to you, the extra amount will be deducted from either your Housing Benefit or Universal Credit, reducing those payments.

You will need to make up any shortfall the benefit cap causes and continue to make your rent payments as normal, get advice and support straight away if you are struggling.

For example, currently:

A couple with a child renting a two bedroom property is entitled to £2,015.91 Universal Credit per month and £26.05 per week (£112.88 per month) Child Benefit. This totals benefit entitlement of £2,128.79 per month.

The benefit cap that impacts a couple is £1,835.00 per month and so the amount that they are entitled to is over the benefit cap amount by £293.79 per month.

This means the Universal Credit award they are entitled to will reduce from £2,015.91 per month to £1,722.12 per month because of the benefit cap as the couple will now receive benefits totalling £1,835.00 per month from Universal Credit and Child Benefit awards.

Benefits that do not count towards the benefit cap

The following benefits are not included when working out whether your total benefit income is more than the benefit cap:

  • Council Tax Reduction
  • Pension Credit
  • One off payments made by your local authority to help you out in a crisis
  • Statutory Sick Pay, Statutory Maternity Pay, Paternity Pay or Adoption Pay
  • Winter Fuel and Cold Weather Payments
  • State Pension
  • Non-cash benefits, for example, free school meals
  • A short term advance from the DWP to help you out over a crisis until your first benefit payment

Who the benefit cap does not apply to

The government’s benefit cap will not apply to you, if you or your partner:

  • Receive combined earnings of at least £846 per month after tax and National Insurance contributions when claiming Universal Credit
  • Receive the Limited Capability for Work and Work-Related Activity element of Universal Credit
  • Receive the carers element of Universal Credit

The government’s benefit cap will not apply to you, if anyone in your household is entitled to any of the following benefits:

  • Adult Disability Payment (ADP)
  • Armed Forces Compensation Scheme
  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Carer Support Payment
  • Child Disability Payment
  • 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)
  • Pension Age Disability Payment
  • Personal Independence Payment (PIP)
  • Scottish Adult Disability Living Allowance (SADLA)
  • War pensions
  • War Widow’s or War Widower’s Pension
  • If you are in a care home or in hospital, and this is the reason you don’t receive one of the above benefits

Pensioners are not affected by the benefit cap.

Benefit Cap grace period

There may be a grace period of nine months before the benefit cap is applied if you or your partner:

  • Receive Universal Credit and earned more than the relevant earnings threshold for the last 12 months, this was £793 per month up to 31 March 2025 and from 1 April 2025 is £846 per month.
  • Receive Housing Benefit and have worked for 50 weeks out of the 52 weeks leading up to your last day of work.

You need to report your last 12 months’ earnings when you apply for Universal Credit to get the grace period.

You can find out more about this online at GOV.UK’s page on when the benefit cap affects your Universal Credit payments.

Options to deal with benefit cap

  • Can you or your partner find paid employment or work more hours to increase your earnings above the relevant earnings threshold that is currently £846 per month?
  • Can you, your partner, or any children under 18 living with you receive a benefit that means the benefit cap won’t apply or that is not included in the benefit cap to increase your income? Do a benefit check at www.reading.gov.uk/benefitcheck
  • Can you move to cheaper accommodation or negotiate a rent reduction with your landlord if you rent privately?

If you are affected by the benefit cap

  • Make a personal budget to help you budget, you can use our Money Advice Handbook
  • Contact Reading Borough Council’s Money Advice Team who can help you make a budget and explore your options to deal with the benefit cap and set a manageable budget, our contact details are on the useful contacts below.
  • If you can’t make up the benefit cap you can apply for a Discretionary Housing Payment
  • If you need any further information about making an application or to request a paper application form, contact the Money Advice Team on 0118 937 2197
  • Find out if you can get any help from a charity, you can get information about how charities can help from turn2us

Information on a range of money matters.

Useful contacts

Last updated on 25/06/2025