Is there a benefit cap on the benefits a family can obtai
Executive summary
There is a benefit cap in Great Britain that limits the total amount of working‑age benefits a household can receive; it has different monthly/annual levels and exemptions and affected tens of thousands of households as recently as 2025 (for example, around 38,000 London households were capped in February 2025) [1] [2]. Separately, the two‑child limit (which stops payments for a third or later child) was announced as being scrapped in the 2025 Budget to take effect in 2026 — a policy change distinct from the broader benefit cap [3] [4].
1. What “the benefit cap” actually is
The benefit cap is a statutory limit on the total amount of certain working‑age benefits a household can receive; if a household’s combined entitlement to specified benefits exceeds the cap the award is reduced so the household falls within the limit [5] [6]. Government statistical releases and advice charities define it as a ceiling that applies primarily to working‑age households and can reduce Housing Benefit or Universal Credit housing payments when it bites [5] [7].
2. How many households are affected and where
Official figures and NGO analysis show the cap affected many households through 2024–25. Trust for London reports approximately 38,000 London households had income reduced by the cap in February 2025, and national DWP statistics record thousands more: the weekly average reduction (the “average cap amount”) was £60 at February 2025 [1] [2]. DWP datasets also record flows on and off the cap and note employment or receiving an exempting benefit as common reasons for leaving the capped population [2].
3. Levels, geography and changes over time
The value of the cap varies by household type and has changed over the years. Trust for London notes London‑specific limits (for example, they cite a Greater London limit of £25,323 per year for couple or parent households in recent years) and other organisations and government pages publish the current annual and weekly thresholds and revisions [1] [5]. The cap was first introduced in 2013, has been reduced and re‑set at points since then, and DWP statistics trace households capped from the policy’s rollout to 2025 [3] [8].
4. Exemptions, “grace periods” and how people escape the cap
Several benefits or personal situations exempt a household from the cap: for example, receiving certain disability‑related awards or State Pension age status can remove a household from scope [5] [9]. For Universal Credit claimants there can be a nine‑month delay before the cap starts depending on recent earnings, and guidance describes an earnings‑based “grace” test (earlier figures for the earnings threshold were £793 per month for the FYE 2025, rising to £846 from April 2025 in guidance elsewhere) [10] [8] [11].
5. Distinguishing the benefit cap from the two‑child limit
News coverage and government guidance stress these are different policies. The benefit cap limits total benefit income to a household; the two‑child limit (a separate rule introduced in 2017) restricts child‑related payments for third and subsequent children. The 2025 Budget announcement by the Chancellor said the two‑child limit will be scrapped in 2026 — a policy U‑turn distinct from any change to the overall benefit cap [4] [3].
6. Policy debate and impacts recorded by charities and analysts
Campaign and charity reporting links the cap to housing stress and poverty risks: research and advocacy groups warned earlier reductions could push households towards homelessness and hardship when the cap was lowered in previous years [3]. NGOs and government statistics evidence both churn (households moving on and off the cap) and a persistent cohort still affected, fueling political debate over fairness and fiscal cost [2] [1].
7. Practical steps and where to check your position
Government guidance and third‑sector organisations point people to official online tools and local advice: GOV.UK hosts the benefit cap explanation and a calculator; charities such as Carers UK, Gingerbread and Disability Rights UK summarise exemptions and practical options including Discretionary Housing Payments from councils for those losing housing support [5] [7] [11] [12].
Limitations and sourcing note: reporting above is based on the provided official statistics, government guidance and media reporting in the supplied sources. Available sources do not mention any post‑2025 numerical changes to the general benefit cap beyond the statistics and guidance cited here; the Budget change covered in the sources relates specifically to the two‑child limit [3] [4].