Benefit Cap
The Benefit Cap is a limit on the total amount of welfare benefits a working-age household can receive. It applies to most households outside London at £442.31 per week (£384.62 for single adults without children) and at slightly higher rates in Greater London. Households where someone works enough hours to qualify for Working Tax Credit, or receives certain disability benefits, are exempt from the cap.
The Benefit Cap sets annual limits on total household welfare income: £25,323 for couples (including lone parents) in Greater London, £22,020 for couples outside London, £16,967 for single claimants in London, and £14,753 for single claimants elsewhere. These figures are divided into weekly amounts when calculating deductions. The cap reduces your Universal Credit (or Housing Benefit if on legacy benefits) by the excess above the threshold. Several groups are entirely exempt: households receiving Disability Living Allowance, Personal Independence Payment, Attendance Allowance, the ESA support component, Carer's Allowance, or Working Tax Credit (where qualifying hours are met). If you believe you have been wrongly capped, request a mandatory reconsideration immediately — the DWP sometimes miscalculates exempt benefits. Lone parents with a child under one are also temporarily exempt.