Glossary · UK
What is Benefit Cap (2026/27)?
A limit on the total amount of certain benefits a household can receive, applied for 2026/27.
Full Definition
The benefit cap limits the total amount of certain means-tested benefits (mainly Universal Credit and Housing Benefit) that a working-age household can receive, with different limits depending on whether the household is inside or outside Greater London and whether it is a single person or a couple/family with children. Households are generally exempt if someone receives a qualifying disability or carer benefit, or if earnings are high enough to meet the earnings exemption threshold, and the cap is usually applied by reducing the housing element of Universal Credit.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.