The benefit cap limits the total a working-age household can receive from most benefits to £22,020 a year outside London and £25,323 in Greater London for couples and single parents, and to £14,753 and £16,967 for single people without children. In monthly terms that is £1,835, £2,110.25, £1,229.42 and £1,413.92. The cap does not apply to households earning at least £881 a month between them, to anyone receiving a disability or carer benefit, or to people over State Pension age. Where it bites, Universal Credit or Housing Benefit is reduced by the amount over the limit, and the households most affected are larger families renting in expensive areas.
The limits
| Household | Outside Greater London | Greater London |
|---|---|---|
| Couple, with or without children | £22,020 a year, £1,835 a month | £25,323 a year, £2,110.25 a month |
| Single parent with children living with them | £22,020 a year, £1,835 a month | £25,323 a year, £2,110.25 a month |
| Single person without children | £14,753 a year, £1,229.42 a month | £16,967 a year, £1,413.92 a month |
The cap was set in 2016, uprated once in April 2023 and has stayed at these levels since, while the benefits it caps have risen each April. Because Universal Credit standard allowances, child elements and housing costs have grown against a fixed ceiling, a couple with three children renting privately can now exceed £1,835 a month in many parts of the country without any unusual circumstances. The benefit cap calculator totals your benefits against the limit for your household and area.
What counts towards it
Universal Credit including the housing element, or the legacy equivalents of Housing Benefit, Jobseeker’s Allowance, Employment and Support Allowance, Income Support and Child Tax Credit, together with Child Benefit, Maternity Allowance, Widowed Parent’s Allowance and Bereavement Allowance all count. Council Tax Reduction, Discretionary Housing Payments, free school meals and one-off payments do not. Statutory payments through an employer such as maternity or sick pay are earnings rather than benefits.
| Example | Benefits a month | Cap | Reduction |
|---|---|---|---|
| Couple with children outside London, no earnings | £2,000 | £1,835 | £165 |
| Same family in London | £2,000 | £2,110.25 | £0 |
| Single person outside London | £1,500 | £1,229.42 | £270.58 |
| Single person outside London, earning £900 a month | £1,500 | exempt | £0 |
| Couple receiving PIP for one partner | £2,400 | exempt | £0 |
The reduction is taken from Universal Credit, or from Housing Benefit for households still on legacy benefits; the other benefits are paid in full. Where Universal Credit is already reduced by earnings or deductions, the cap applies to what remains, and it cannot take Universal Credit below zero.
Who is exempt
| Exemption | Detail |
|---|---|
| Earnings | Household earnings of at least £881 a month after tax and National Insurance, equivalent to 16 hours a week at the National Living Wage |
| Disability and carer benefits | Personal Independence Payment, Disability Living Allowance, Attendance Allowance, Carer’s Allowance or the Universal Credit carer element, the limited capability for work and work-related activity element or the ESA support component, Industrial Injuries Benefit, and Armed Forces Independence Payment or Compensation |
| War pensions | War Widow’s or Widower’s Pension and War Disablement Pension |
| Guardian’s Allowance | Any amount |
| Pension age | Households where the claimant and any partner are over State Pension age, or receiving Pension Credit |
The earnings exemption is the route out for most capped households: 16 hours a week at the £12.71 National Living Wage produces about £881 a month, so the threshold is designed to match a part-time job for one adult. Where earnings fall below the threshold after at least twelve months at or above it, a nine-month grace period applies before the cap starts, which protects people who lose a job. Our guides to PIP and Carer’s Allowance cover the two benefits that most often lift a household out of the cap.
Working around the cap
A household just over the limit has three practical levers. Earnings of £881 a month remove the cap entirely, and under Universal Credit the earnings taper of 55p in the pound means the first pounds earned still leave the household better off; our Universal Credit rates guide shows the arithmetic. A Discretionary Housing Payment from the council can cover a rent shortfall created by the cap, usually for a limited period. And a claim for a disability benefit by any household member, including a child’s Disability Living Allowance, exempts the whole household. The Housing Benefit calculator and Universal Credit calculator estimate the award before the cap is applied.
Common questions
What is the benefit cap in 2026/27? £22,020 a year outside London and £25,323 in Greater London for couples and single parents, and £14,753 or £16,967 for single people without children. Monthly, that is £1,835, £2,110.25, £1,229.42 and £1,413.92.
Which benefits are capped? Universal Credit or Housing Benefit and the other legacy benefits, Child Benefit, Child Tax Credit, Maternity Allowance and bereavement benefits. Council Tax Reduction and one-off payments are outside it.
How do I avoid the cap? Earn at least £881 a month as a household, receive a qualifying disability or carer benefit, or reach State Pension age. A nine-month grace period applies after earnings stop following twelve months in work.
How is the cap applied? By reducing Universal Credit, or Housing Benefit for legacy claimants, by the amount the household’s total exceeds the limit. Other benefits are paid in full.
Does the cap apply to pensioners? No. Households where the claimant and partner are over State Pension age, or receiving Pension Credit, are not capped.
Does PIP count towards the cap? No, and receiving it exempts the whole household. The same applies to DLA, Attendance Allowance and Carer’s Allowance.
Information, not financial advice. Cap levels and the earnings threshold are the published 2026/27 figures on gov.uk: benefit cap; worked examples are from the site’s calculator. Check your own award with the DWP or a welfare rights adviser before acting on them.