Benefit Cap

Government guidance defines the cap in one sentence: 'The benefit cap is a limit on the total amount of benefit you can get. It applies to most people aged 16 or over who have not reached State Pension age.' It does not apply to every payment a household might receive, but it does sweep in most of the main working-age benefits, including 'Universal Credit', 'Child Benefit', 'Employment and Support Allowance', 'Housing Benefit' and 'Jobseeker's Allowance', among others.

There are important carve-outs and transitional protections. Guidance notes that a claimant 'might not be affected by the benefit cap if you get certain benefits or you're over State Pension age', and that for someone newly claiming Universal Credit, 'the benefit cap might not start for 9 months, depending on your earnings' — giving new claimants a period of grace before the limit bites.