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Welfare reform benefit cap

There’s a limit on the total amount of benefit that most people aged 16 to 64 can get. This is called the benefit cap.

The level of cap is £350 a week for single people, £500 a week for lone parents and £500 a week for couples with or without children living with them. This will help to ensure that people out of work do not receive more than what they could reasonably expect to earn from working.

The cap applies to the total combined amount of benefits received and will include (among others):

  • Income-based Jobseeker’s Allowance
  • Income Support
  • Work-related Employment Support Allowance
  • Universal Credit
  • Housing Benefit
  • Child Benefit
  • Child Tax Credit
  • Carer’s Allowance

Individuals who work a minimum of 16 hours per week, or couples who work a minimum of 25 hours per week combined, will be exempt from the cap, as well as those claiming Disability Living Allowance (DLA). However, it’s important to note that when Personal Independence Payment (PIP) replaces DLA, those who do not qualify for the new benefit will be subject to the benefits cap.

Further information about the benefit cap can be found by visiting the government website.

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