Benefit Cap Households Surge After Policy Changes
Official figures indicate a significant increase in families receiving maximum welfare payments following the abolition of the two-child limit and an increase in Universal Credit rates.
The number of households subject to the benefit cap on Universal Credit rose by 53,000, or 48 percent, between February and May this year, according to Department for Work and Pensions (DWP) data. This marks a 41 percent increase compared to May of the previous year.
The benefit cap limits the total amount of welfare payments a household can receive. It does not apply to individuals who receive Universal Credit due to disability or caring responsibilities. The cap currently stands at £1,835 per month for those outside Greater London and £2,110.25 for those within the capital.
These figures coincide with the end of the two-child limit on April 6, which previously restricted Universal Credit claims to support for the first two children in most families. On the same day, most Universal Credit rates were increased by 6.2 percent.
Of the 160,000 households subject to the benefit cap in May, 88,000 were already capped in February. An additional 58,000 households began being capped between March and May.
Eight in 10 capped households in May included children. Among these, 94 percent had between one and four children, and 6 percent had five or more. Data indicates that the majority of capped households with children in May had three children, compared to a majority with two children in February.
The proportion of capped households claiming Universal Credit rose from 1.5 percent in February to 2.3 percent in May. The London region continued to show the highest proportion of Universal Credit households affected by the benefit cap, with 4.3 percent in May compared to 3.3 percent in February. Scotland had the lowest proportion at 1 percent.
The average monthly amount households were capped by increased to £346 in May, up from £237 in February and £255 in May 2025.
Social security minister Stephen Timms defended the benefit cap in June, stating that it provides a modest but significant incentive for claimants to start and progress in work. He noted that the cap does not apply to individuals out of work due to disability or caring responsibilities. 
