The benefit cap is a policy introduced by the British Coalition government in 2013 that limits the amount in state benefits that an individual household can claim per year. It is a limit on the total amount of benefit that a household can receive and applies to most people aged 16 or over who have not reached State Pension age. The benefit cap affects a range of benefits, including 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, and Widowed Parent’s Allowance. The amount of the benefit cap limit depends on factors such as whether the household is made up of a couple, if there are children living with them, and where they live.

The benefit cap does not apply to households living in Supported Exempt Accommodation, and those who receive Working Tax Credit or certain disability benefits. If a households benefits would add up to more than the limit, their Housing Benefit or Universal Credit will be reduced. However, there are exemptions from the benefit cap for those who receive Disability Living Allowance and Carers Allowance.

In summary, the benefit cap is a policy that limits the total amount of benefit that a household can receive and applies to most people aged 16 or over who have not reached State Pension age. It affects a range of benefits, and the amount of the limit depends on various factors. There are exemptions from the benefit cap for certain disability benefits and allowances.