Sanela
The Department for Work and Pensions (DWP) has revealed new figures showing that some Universal Credit claimants could receive up to £25,000 in benefits.
However, the total award is subject to the benefit cap, unless specific exemptions apply. Understanding the rules, limits, and available support is essential for claimants who want to maximize their entitlements.
What Is the Benefit Cap?
The benefit cap sets a maximum limit on the amount of benefits you can claim. According to DWP data, the current caps are:
| Claimant Type | Monthly Cap (Outside London) | Monthly Cap (Greater London) | Annual Equivalent (Greater London) |
|---|---|---|---|
| Couples or Lone Parents | £1,835.00 | £2,110.25 | £25,323 |
| Single Adults (No Children) | £1,229.42 | £1,413.92 | £16,967 |
This means that if you are a couple or lone parent in London, your maximum entitlement could reach over £25,000 annually.
Who Is Exempt from the Benefit Cap?
Not all claimants are restricted by the cap. The DWP exemptions apply if you, your partner, or your child receive certain benefits, including:
- Disability Living Allowance (DLA)
- Child Disability Payment
- Personal Independence Payment (PIP)
- Adult Disability Payment
- Attendance Allowance
- Carer’s Allowance or Carer Support Payment
- Armed Forces Independence Payment
- Industrial Injuries Benefits
Additionally, you are exempt if you or your partner receive:
- Guardian’s Allowance
- A Carer’s Element or Limited Capability for Work-Related Activity within UC
- Employment and Support Allowance (ESA) that includes a support component
- War Disablement Pension
- Guaranteed Income Payment or Survivor’s Guaranteed Income Payment under the Armed Forces Compensation Scheme
Earnings and Work-Related Exemptions
You are not impacted by the benefit cap if:
- Your monthly earnings (alone or with your partner) are at least £846.56
- You or your partner are unemployed after working for at least 12 months (in which case, the exemption lasts nine months)
Additional Support: Discretionary Housing Payments (DHP)
If you are affected by the cap, you may still qualify for Discretionary Housing Payments through your local authority to help cover housing costs.
- In Scotland, the Scottish Government has pledged to mitigate the benefit cap fully through DHP support.
Universal Credit Commitments and Conditions
To receive Universal Credit, claimants must agree to a claimant commitment. This sets out work-related expectations and obligations. Failure to comply may lead to sanctions.
Claimants are placed into one of four groups, depending on their work situation and responsibilities, ensuring tailored conditions for each individual or household.
The DWP benefit cap ensures limits on how much Universal Credit can be claimed annually, with exceptions for those with disabilities, carers, and individuals receiving specific benefits. For many families in London, the total support can exceed £25,000 per year. Claimants who are affected can seek additional assistance through Discretionary Housing Payments. Ultimately, staying informed about exemptions, earnings thresholds, and claimant commitments is crucial for securing financial stability.
FAQs
Anyone receiving disability-related benefits, carer support, war pensions, or certain allowances such as ESA with a support component is exempt.
For couples or lone parents, it is £2,110.25 per month in London versus £1,835.00 elsewhere. For single adults without children, the cap is £1,413.92 in London and £1,229.42 outside London.
Yes. You may apply for Discretionary Housing Payments from your local council. In Scotland, these payments fully offset the cap.