The Government introduced the benefit cap in 2013. The benefit cap provides a clear incentive for people to move into work and ensures we have a welfare system that is fair for those who need it and those who pay for it. Evaluation of the benefit cap has shown that capped households were 41% more likely to enter employment compared to similar uncapped households.
- Currently, households are capped at:
£26,000 (£500 per week) for couples and lone parents. £18,200 (£350 per week) for single people with no children.
- New cap limits from 7th November 2016:
£20,000 (£383.63 per week) for couples and lone parents. £23,000 (£442.31 per week) in London recognising the higher cost of living.
£13,400 (£257.69 per week) single adults with no children 0it0eba. £15,410 (£296.35 per week) in London.
- The exemptions that currently apply to the benefit cap will continue to apply.