The benefit cap

Exemptions to the benefit cap

There are exemptions to the cap where someone in the household:

  • Obtains work and becomes entitled to working tax credit
  • Is in receipt of universal credit because of a disability or health condition that stops them working
  • Is of pension age or in receipt of war widow's or widower's allowance
  • Is in receipt of war pensions
  • Is in receipt of disability living allowance or personal independence payment
  • Is in receipt of constant attendance allowance 
  • Is in receipt of the support component of employment support allowance
  • Is in receipt of industrial injuries benefits
  • Is in receipt of guardians allowance
  • Is in receipt of carer's allowance
  • Is in receipt of Armed Forces Compensation Scheme
  • Is in receipt of Armed Forces Independence Payment
  • Is in receipt of universal credit and you and your partner earn more than £722.00 a month combined after tax and national insurance contributions
  • Is in receipt of universal credit because they care for someone with a disability

Which benefits and payments are not included in the benefit cap?

  • Council tax support
  • Discretionary discount fund
  • Discretionary housing payments
  • Social fund payments - all one-off payments of: budgeting loans, cold weather payments, community care grants, crisis loans, funeral payments, sure start maternity grants
  • Pension credit
  • Residency order payments
  • Statutory adoption pay - paid by employers
  • Statutory maternity pay - paid by employers
  • Statutory paternity pay - paid by employers
  • Statutory sick pay - paid by employers
  • Winter fuel payment

Last updated: 20/04/2023, 09:01