Cap doesn’t apply



The cap does not apply if a person or their partner works and either of the following apply:


• they or their partner are eligible for Working Tax Credit; or


• they or their partner get Universal Credit, and the household income is more than £430 a month after tax and National Insurance Contributions.


In addition, households are exempt from the cap if anyone gets any of the following benefits:


• Disability Living Allowance;



• Personal Independence Payment (which started to replace Disability Living Allowance from April 2013);



• Attendance Allowance;



• Carer’s Allowance;


• Guardian’s Allowance;


• the support component of Employment and Support Allowance; 



• Industrial Injuries Benefits (and equivalent war disablement pensions and payments under the Armed Forces Compensation Scheme);



• War Pensions, War Widow’s and War Widower’s pension; 



• Armed Forces Independence Payment; and


• UC payments towards carers’ costs or for “limited capability for work and work-related activity”.


In addition, a grace period of 39 weeks applies where:


• someone is claiming Universal Credit and they (and their partner) earned at least £430 a month for the previous 12 months; or 


• someone is claiming Housing Benefit and they (or their partner) was working for at least 50 out of the previous 52 weeks, and while they (or their partner) were working, they were not entitled to Income Support, Jobseeker’s Allowance or Employment and Support Allowance.