Advice Articles / Benefit cap exemptions: Who is not affected?

Benefit cap exemptions: Who is not affected?

Sarah Munson
2 minute read
benefit cap

Page contents

  1. What is the benefit cap?
  2. How much is the benefit cap?
  3. What benefits are affected by the cap?
  4. Who is exempt from the benefit cap?
Page contents
  1. What is the benefit cap?
  2. How much is the benefit cap?
  3. What benefits are affected by the cap?
  4. Who is exempt from the benefit cap?

What is the benefit cap?

The benefit cap was introduced in 2013 as part of the Welfare Reform Act 2012. It is a maximum amount that a household can receive in benefits per year or month. The cap largely applies to people who receive Universal Credit and Housing Benefit, but there are exemptions from the benefit cap.

How much is the benefit cap?

The cap is a set maximum amount per year that your household’s combined benefits cannot exceed.

Under the Welfare Reform and Work Act 2016, the cap was amended and the 2024/25 amounts are:

If you live in Greater London:

  • £25,323 per year / £2,110.25 per month if you are in a couple and/or have children.
  • £16,967 per year / £1,413.92 per month if you are single and do not have children (that you are responsible for) in your household.

If you live outside Greater London

  • £22,020 per year / £1,835 per month if you are in a couple and/or have children.
  • £14,753 per year/ £1,229.42 per month if you are single and do not have children in your household.

What benefits are affected by the cap?

If you receive any of the following benefits you will be affected as they are counted as ‘welfare benefits’ that are capped.

  • Bereavement Support Payment
  • Child Benefit
  • Employment and Support Allowance (ESA) and the following benefits which are being replaced by ESA
    • Incapacity Benefit
    • Severe Disablement Allowance
  • Jobseeker’s Allowance
  • Universal Credit, and the following benefits which are being replaced by Universal Credit

Who is exempt from the benefit cap?

You are exempt if:

You are under 16 or over State Pension age

If you are under 16 years old, or of State Pension age or above, you are exempt from the benefit cap. If there is somebody in your household who is still of working age though, the cap may still apply.

Your State Pension age depends on when you were born. Find out yours on the Government’s calculator.

You get Working Tax Credit

If you or your partner gets Working Tax Credit, you’ll be exempt from the benefit cap. It doesn’t matter how much you get in Working Tax Credit.

Your Universal Credit claim meets these criteria

  • You get Universal Credit because:
    • You have a health condition or disability that limits your capacity to work.
    • You are an unpaid carer for somebody who has a disability.
  • You and your partner earn at least £793 a month after tax and National Insurance between you, and claim Universal Credit.

Yourself, your partner or your child claims one or more of these benefits

If you, your partner or any children (under 18) in your household claim one or more of the below benefits, you should be exempt from the benefit cap.

This does not apply to other people in your household, such as a lodger, other relative or grown-up child.

Certain disability-related benefits:

  • Personal Independence Payment (PIP)
    • Adult Disability Payment (Scotland)
    • You are in the support group for Employment and Support Allowance (ESA)
    • Attendance Allowance (AA)
    • Disability Living Allowance (DLA)
    • Industrial Injuries Disablement Benefit
  • Any War Pensions, including War Widow’s or War Widower’s Pensions
  • Armed Forces Compensation Scheme or Independence Payment
  • Carer’s Allowance
  • Guardian’s Allowance

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