The cap levels for 2026/27
The monthly benefit cap in 2026/27 is £1,835 outside London for families and £2,110 inside London for families. Single adults without children face lower caps: £1,229 outside London and £1,413 inside London. The cap applies to the household, not per person. For a couple, the couple cap applies regardless of whether one or both are claiming.
Which benefits count toward the cap
Most working-age benefits count toward the cap: Universal Credit, Child Benefit, Housing Benefit, Maternity Allowance, Carer's Allowance, Bereavement Allowance and others. Some benefits are excluded from the cap calculation, including Disability Living Allowance, PIP and the UC LCWRA element (which instead triggers an exemption from the cap entirely).
Who is exempt from the cap
You are exempt from the Benefit Cap if you or your partner receives PIP, DLA, LCWRA, ESA support group (or the equivalent UC element), Carer's Allowance, Armed Forces Independence Payment, War Widow's Pension, or certain other disability-related payments. If you work enough hours to receive Working Tax Credit, or if you are in a period of work in UC (earnings above the threshold), the cap may also not apply. Check your situation carefully; many families who appear to be capped are actually exempt.
How the deduction works in UC
If the cap applies, the excess above the cap level is deducted from your Universal Credit. UC is reduced first, before other elements or benefits. If your total benefit income is £2,200 per month and the cap is £1,835, UC is reduced by £365 per month. If UC is less than the excess, the deduction can reduce UC to zero. You would then receive other benefits at their normal rate but no UC.
Moving into work to lift the cap
Working enough hours to take household earnings above approximately £722 per month typically lifts the benefit cap. This is because earning above the UC earnings threshold triggers the grace period rules or equivalent. The cap is designed as a work incentive: once earnings reach a sufficient level, the cap no longer applies and total income (benefits plus earnings) is not constrained.