The Benefits Cap is the maximum amount that one household can receive on benefits, when any and all benefits claimed by members of the household are added together.

While individuals in the household may be eligible for various combinations of benefits, such as Universal Credit, Housing Benefit and Child Benefit, when combined, they cannot exceed the Benefit Cap.

It means those hitting the cap see one of their benefits, most often Universal Credit, reduced to prevent it from exceeding the cap.

The cap is set at different rates for single people and couples, and inside and outside London.

Currently, the cap is £22,020 for couples and lone parents outside London, or £14,753 for single adults with no children.

In Greater London, the cap is £25,233 for couples and single parents, and £16,967 for single adults.

The cap was last increased in 2024, and has been frozen in 2025 and will not be raised in 2026 either.

The government said on Tuesday that the number of households hitting the cap, and therefore missing out on some payments they would be entitled to, is ‘broadly stable’ compared to the last update in May.

The DWP added that for Universal Credit claimants who are impacted by the cap on average they would have been able to claim an extra £249 a month without the cap. This compared with £256 in May 2025.

82% of households hitting the cap have children, with 93% having four children or less, and 7% having five or more children.

But the hardest hit by the cap are single parent households.

The DWP said: “Single parent households have consistently accounted for the most households having their benefits capped since the beginning of the time series in May 2020.

“68% of capped households were single parent families in August 2025.

“The proportion of capped households that are single person households with no children has been gradually increasing from a low of 9% in May 2023 to 18% in August 2025. In November 2024 they became a greater proportion of capped households than couple households with children for the first time in the charted time series.”

In terms of region, London was the most affected, with five out of the top 10 areas for benefit cap households in London, and the other five all in the East of England or South East. None of the areas in the top 10 were north of London.

Citizens Advice explains how it works too, adding that there are exceptions which mean you can exceed it.

It says: “The Benefit Cap is a limit to the total amount of money you can get from some benefits. If your Universal Credit payment is over a specific amount, the DWP might reduce it to bring it down to a certain level.

“The Benefit Cap will not apply if you’re working and earn at least £846 a month after tax. If you have a partner, your combined earnings need to be at least £846 a month.”

It adds: “The Benefit Cap also will not apply to you if you or your partner is getting one of these benefits:

• the limited capability for work and work-related activity (LWCRA) element of Universal Credit
• the carer element of Universal Credit, Carer’s Allowance or Carer Support Payment
• Guardian’s Allowance
• Attendance Allowance or Pension Age Disability Payment
• Industrial Injuries Disablement Benefit, reduced earnings allowance or retirement allowance
• war pensions and payments from the Armed Forces Compensation Scheme

Recently, the government announced that the two-child benefit cap will be scrapped from April. This is a limit on claiming extra Universal Credit benefits for more than two children. It means you will now be able to claim more money for each additional child for the ‘children’ element of Universal Credit.

However, confusingly, this is still subject to the overall Benefits Cap, meaning you won’t be able to get any more money if it would push you past the cap.

As explained by Money Helper: “The benefit cap is the maximum amount your household can get in benefits. This means that if you already get the maximum amount your payment will not increase.”