The benefit cap is a limit on the total amount of benefits you can get. It applies to most people aged 16 or over who have not reached State Pension age.
The benefit cap affects:
- Universal Credit
- Bereavement Allowance
- Child Benefit
- Child Tax Credit
- Employment and Support Allowance
- Housing Benefit
- Incapacity Benefit
- Income Support
- Jobseeker’s Allowance
- Maternity Allowance
- Severe Disablement Allowance
- Widowed Parent’s Allowance (or Widowed Mother’s Allowance or Widow’s Pension if you started getting it before 9 April 2001)
You might not be affected by the benefit cap if you get certain benefits or you’re over State Pension age.
If you’re claiming Universal Credit the benefit cap might not start for 9 months, depending on your earnings. Find out more about when the benefit cap affects your Universal Credit payments.
When you're not affected
You’re not affected by the cap if you’re over State Pension age. If you’re part of a couple and one of you is under State Pension age, the cap may apply.
You’re not affected by the cap if you or your partner:
- get Working Tax Credit (even if the amount you get is £0)
- get Universal Credit because of a disability or health condition that stops you from working (this is called ‘limited capability for work and work-related activity’)
- get Universal Credit because you care for someone with a disability
- get Universal Credit and you and your partner earn £617 or more a month combined, after tax and National Insurance contributions
You’re also not affected by the cap if you, your partner or any children under 18 living with you gets:
- Armed Forces Compensation Scheme
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Disability Living Allowance (DLA)
- Employment and Support Allowance (if you 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 (PIP)
- War pensions
- War Widow’s or War Widower’s Pension
Help if you're affected by the benefit cap
If your Housing Benefit or Universal Credit Housing costs doesn't cover all of your rent due to the benefit cap and you are having difficulty paying the shortfall, you may be able to get a Discretionary Housing Payment (DHP) to help. Find out more about Discretionary Housing Payment.
If you require advice on the benefit cap, please get in touch with the Financial Inclusion Team to discuss if you meet an exemption.
Benefit sanctions
A benefit sanction is where your benefits can be stopped or reduced if you don’t do the things you agreed to do in your claimant commitment or miss appointments or meetings. This is called a benefit sanction.
Which benefits can be sanctioned?
These include:
- Employment and Support Allowance (and you’re in the work-related activity group)
- Income Support
- Jobseeker’s Allowance
- Universal Credit.
Why are benefits sanctioned?
If you’re claiming the benefits listed above, you’ll have signed a document called a claimant commitment.
This sets out all your responsibilities, and what the sanctions will be if you don’t meet them.
If you don’t have a claimant commitment, your responsibilities will be in your Jobseeker’s agreement, action plan or appointment letter.
Benefits are most often sanctioned if:
- you’re not doing enough to look for work
- you’re late for appointments or interviews
- you don’t turn up to a meeting at the Jobcentre
- you don’t take part in an employment or training scheme.
Hardship payments
A hardship payment is a reduced amount of benefit.
To qualify for a hardship payment:
- you must be unable to pay for essentials, and
- your JSA or ESA personal allowance, or your Universal Credit standard allowance, has been cut.
You must be able to prove you’re likely to suffer hardship or you're vulnerable.
You’re in a vulnerable group if, for example:
- you or your partner are pregnant
- you’re caring for a severely disabled person
- you’re responsible for any dependent children
- you or your partner are aged 16 or 17 and are in hardship
- you or your partner have a chronic health condition or disability.
To qualify for a hardship payment, you must now be following the rules for getting your benefit.
How much is a hardship payment?
It normally pays 60% of your usual benefit payment.
If you or your partner are pregnant or seriously ill, you might be able to get 80% of your usual benefit payment.
How to apply for a hardship payment
To apply for a hardship payment, ask your Work Coach at the Jobcentre – they’ll help you fill out form JSA/ESA 10JP.
They should give you an appointment to do this on the same day or the next day. And you should get a decision at the end of the interview.
If you qualify for a hardship payment, the money should be paid into your bank account immediately, or on the date your next benefit payment is due.
Or, call the DWP contact centre on 0345 608 8545 who will set up an appointment for later in the day or the next day at your local Jobcentre.
You’ll need to arrive ten minutes early so you can fill in the form.
Paying back a hardship payment
If you’re getting Employment and Support Allowance or Jobseeker’s Allowance, you don’t have to pay back a hardship payment.
However, this rule might change so it’s always best to check before you apply.
If you’re getting Universal Credit, you’ll have to pay back the hardship payment when the sanction ends.
DWP will usually take repayments from your Universal Credit payment each month until it’s paid off.
Make sure you ask for repayments to be set at a rate you can afford, to avoid getting into debt.
Apply to Scottish Welfare Fund
The Scottish Welfare Fund provides financial support if you are facing a crisis or need help to live in the community. This is normally in the form of a one-off grant to help with living costs. The fund does not cover ongoing expenses. Find out more about the Scottish Welfare Fund.