The Benefit Cap limits the total amount of social security benefits that can be paid in:
- Child Benefit
- Employment and Support Allowance
- Jobseeker’s Allowance
- Maternity Allowance
- Universal Credit
- Widowed Parent’s Allowance
- Widow’s Pension
If the cap applies to you, and your total entitlement exceeds the cap figure, your Universal Credit is reduced accordingly.
The benefit cap does not apply to you if:
- You are over Pension Age
- You and/or your partner are claiming Universal Credit while you are in work and you earn at least £881pcm
- You or your partner get ESA with a Support Component.
- You or your partner get Universal Credit with a Limited Capability for Work-Related Activity Element.
- You or your partner get an Industrial Injuries Benefit or War Pension.
- You or your partner get Attendance Allowance.
- You, your partner, your child or your Qualifying Young Person get Disability Living Allowance, Personal Independence Payment or Armed forces Independence Payment.
- You, your partner, or your Qualifying Young Person get Carer’s Allowance or a Universal Credit Carer Element.
- You, your partner, or your Qualifying Young Person get Guardian’s Allowance.
The benefit cap cannot apply to for a period of nine months after stopping work if you and/or your partner have been earning at least £881pcm for the last 12 months and your pay has now dropped below this level.