Benefit cap
When the benefit cap affects your Universal Credit payments
The benefit cap might not affect your Universal Credit payments for up to 9 months. This is called the ‘grace period’.
You’ll get the grace period if all of the following are true:
- you’re claiming Universal Credit because you stopped working or your earnings went down
- you’re now earning less than £793 a month
- in each of the 12 months before your earnings went down or you stopped working, you earned the same as or more than the earnings threshold (this was £722 up to 7 April 2024 and is £793 from 8 April 2024)
Your partner’s earnings will be included when working out how much you earned even if they’re not claiming benefits. If you have separated from your partner, their earnings will be included for the time that you lived with them before you separated.
You need to report your last 12 months’ earnings when you apply for Universal Credit to get the grace period.
You will not be affected by the benefit cap if you or your partner get Universal Credit because you have a disability or health condition or because you care for someone with a disability or you earn £793 or more between you.
How the 9 month grace period works
If you’re already claiming Universal Credit, the grace period will start on the first day of the assessment period in which your earnings went below the earnings threshold. The threshold was £722 up to 7 April 2024 and is £793 from 8 April 2024.
If you’re making a new claim for Universal Credit, the grace period starts from either:
- the day after the last day you worked
- the payday when your earnings went below the earnings threshold (this was £722 up to 7 April 2024 and is £793 from 8 April 2024)
The 9 month grace period continues if you stop claiming Universal Credit and then start again.
Example
Your 9 month grace period starts on 1 February.
You get a job on 1 May and your benefit stops. You stop work and claim again from 1 August.
Your 9 month grace period will end on 31 October.
After the 9 month grace period ends, the amount of Universal Credit you get will usually go down. It might not go down if your circumstances change and you are not affected by the benefit cap.