When the Benefit Cap doesn’t apply

[ch 2: pages 26-27]

The cap does not apply if the claimant or their partner:

• gets Working Tax Credit (even if the amount is £0);

• are over State Pension age (see Chapter 6);

• gets UC because of a disability or health condition that stops them from working. This is called “limited capability for work and work-related activity”;

• gets UC because they care for someone with a disability; or

• gets UC and they and their partner earn more than £568.30 a month combined, after tax and National Insurance contributions. This figure is based on the monthly amount a person earns by working 16 hours a week at the National Living Wage (NLW) (£8.21 an hour from April 2019). This NLW rate is for those aged 25 or over but applies in this calculation even if the claimant is under 25.

The cap does not apply if the claimant, their partner or any children under 18 living with them gets:

• Armed Forces Compensation Scheme payments

• Armed Forces Independence Payment

• Attendance Allowance

• Carer’s Allowance

• Disability Living Allowance

• Employment and Support Allowance (if they get the support component)

• Guardian’s Allowance

• Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)

• Personal Independence Payment

• War pensions

• War Widow’s or War Widower’s Pension