Benefit Cap Calculator

The benefit cap limits the total amount of benefits a working-age household can receive. For 2026/27 the cap is £22,020 per year (£423.46/week) for couples and single parents outside London, and £25,323 per year (£486.98/week) in Greater London. Single people without children are capped at £14,753 (£283.71/week) outside London or £16,967 (£326.29/week) in London.

The cap applies to the combined total of most benefits including Universal Credit, Child Benefit, Child Tax Credit, Housing Benefit, Jobseeker's Allowance and Employment and Support Allowance. Some benefits are exempt from the cap, including Disability Living Allowance, Personal Independence Payment, Carer's Allowance, and Working Tax Credit.

You are exempt from the benefit cap if anyone in your household qualifies for Working Tax Credit, earns enough to receive the UC work allowance after the earnings taper, or receives certain disability or carer benefits. This calculator checks whether the cap applies to your household and estimates the reduction.

UK Benefit Cap 2026/27. Limits total benefits a household can receive: outside London £20,020/year couple or single parent (£385/week); £13,400/year single person no children (£258/week). Inside Greater London: £23,000/year couple/single parent (£442/week); £15,410/year single (£296/week). Applied to Universal Credit and Housing Benefit recipients. Doesn't apply if: anyone in household working enough hours (UC earnings >£793/month); receiving disability benefits (PIP, DLA, AA); in support group of ESA; receiving Carer's Allowance.

Exemptions from the Benefit Cap. Working: UC household earning over £793/month (around £200/week net). PIP recipient (any rate). DLA recipient. Industrial Injuries Disablement Benefit. Attendance Allowance. Carer's Allowance. War widow's/widower's pension. ESA support group. Universal Credit Limited Capability for Work and Work-Related Activity (LCWRA) element. Grace period: 39 weeks exempt after stopping work (if worked at least 50 of 52 weeks before). These exemptions exclude millions of UK households from cap effect.

Which benefits count toward the cap? Universal Credit, Housing Benefit, Child Benefit, Bereavement Allowance, Jobseeker's Allowance, Maternity Allowance, ESA (work-related activity group only), Incapacity Benefit. NOT counted: PIP, DLA, AA, Council Tax Reduction, Free School Meals, Healthy Start vouchers, Support for Mortgage Interest. Important: state retirement pension EXEMPT — Pension Credit doesn't count.

How the cap is applied. Capped amount is REDUCED, typically from Housing Benefit or UC housing element. Sample: total benefits without cap £450/week, cap £385 = £65/week reduction. UK affected households 2025: ~190,000 households (mostly larger families, high-rent areas). Single parents with multiple children worst-affected — common to lose £50-£150/week of housing support. Discretionary Housing Payment (DHP): apply to council for top-up if struggling. Move to lower-rent area: often only practical solution.

Avoiding the Benefit Cap — work options. Cap doesn't apply if household earns over £793/month from work (UC threshold 2026). Sample: 16 hours/week at £12.21 NLW = £782/month — too close to threshold. Take 18+ hours/week to clear safety margin. Self-employment income counts. Both partners' incomes combined. Childcare costs reimbursable via UC childcare element (85% of costs) once working. Universal Credit work allowance: £404/month earnings disregarded before taper kicks in (for housing element claimants). Run numbers carefully — sometimes 1-2 extra hours/week unlocks £3,000-£5,000/year more income.