2. The Benefit Cap


The Benefit Cap imposes a limit on the total amount of benefit that people aged 16 to 64 can get. It came into force in 2013 and applies to households.


It 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 (UC), and the household income is more than £430 a month after tax and National Insurance Contributions.


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


• someone is claiming UC 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.