1. Introduction

• Benefit cap

This chapter gives an outline of the basic conditions of entitlement for the main benefits which may be relevant to the situations covered in this Handbook. Other chapters look at how benefits are affected when a child comes to live with you, goes to live elsewhere or leaves local authority care.

To check your entitlement, first use the chapter covering the circumstances that apply to you. It explains the specific rules that apply to benefits in your circumstances. Then use this chapter for an outline of the general conditions of entitlement that apply to everyone. If you need more details, see CPAG’s Welfare Benefits Handbook (for subscribers). Chapter 2 explains how to claim benefits, how to challenge a decision if you disagree with it and how to make a complaint.

Benefit cap

There is a cap on the total amount of benefits you can receive, although some claimants are exempt. If the total amount of your benefit is capped, the cap is applied by either reducing the amount of your universal credit (UC) or by reducing the amount of your housing benefit (HB). The cap does not apply to you if you have reached pension age (see here) and there are a number of other situations in which it does not apply – eg, if you or someone in your household gets a disability benefit, or if you or your partner get carer support payment or guardian’s allowance.

If you are getting UC, the cap is set at £1,229.42 a month for single people with no children and £1,835.00 a month for couples and lone parents.

If you are getting HB, the cap is set at £283.71 a week for single people with no dependent children and £423.46 a week for couples and lone parents.

If you are affected by the benefit cap, you may be able to get some help from a discretionary housing payment (see here).