The Department for Work and Pensions (DWP) has introduced updated benefit cap rates for the 2026/27 tax year, impacting claimants receiving certain benefits. These caps, effective from last week, set strict limits on the total amount individuals and households can receive.
The benefit cap amount varies based on location, household status, and whether claimants have children living with them. For those living outside Greater London, a couple living together will have a weekly cap of £423.46, equivalent to £1,835 per month. This cap also applies to single parents with children.
Single adults outside Greater London are capped at a lower amount of £283.71 per week, or £1,229.42 each month.
READ MORE: My Husband’s NS&I Premium Bonds: A £18,000 Nightmare for Bereaved Family
READ MORE: Rachel Reeves Signals Intent to Maintain 5p Fuel Duty Discount Amid Rising Energy Costs
Inside Greater London, the cap is higher to reflect the increased cost of living. Single adults are limited to £326.29 per week (£1,413.92 monthly), while single parents with children have a weekly cap of £486.98, equating to £2,110.25 per month.
It’s important to note that if couples do not live together, their caps are assessed at the single person level. The benefit cap restricts the total amount of benefits paid to most people aged 16 to under State Pension age. Certain benefits and age groups are exempt from the cap.
For Universal Credit claimants, the cap may be delayed for nine months depending on their earnings, providing some temporary relief. Those over State Pension age are not subject to the benefit cap.
The benefit cap applies to payments from the following 10 benefits: Universal Credit, Bereavement Allowance, Child Benefit, Employment and Support Allowance, Housing Benefit, Incapacity Benefit, Jobseeker’s Allowance, Maternity Allowance, Severe Disablement Allowance, and Widowed Parent’s Allowance (including Widowed Mother’s Allowance or Widow’s Pension started before 9 April 2001).
Claimants should review their entitlement carefully to understand how the new caps might affect their overall benefits for 2026/27.