123,000 households hit by benefits cap

46,000 more households were affected by the benefit cap in May 2024 than in February.

Government figures revealed a 61% increase over the three months, meaning

approximately 123,000 households are affected by the cap,  which limits the total amount of benefits a household can receive.

The report also revealed that:

• a significant number of affected households are families with children
• London is the area most affected, with many families struggling to meet rising living costs

This shows the troubling reality for many low-income families who rely on benefits to make ends meet.

What’s the benefit cap?

The highest amount of benefit support you’re entitled to depends on whether:

• you live inside or outside London
• you’re single, or part of a couple
• your children live with you

You can find the exact caps for different circumstances on the government’s website. 

Why the benefit cap matters

The benefit cap was introduced in 2013 to try to encourage people to find work and depend less on welfare.

But, as benefits are often the only lifeline for families facing unemployment or illness, this limit pushes already struggling households deeper into poverty.

For many families, the cap means that, they can’t afford basic necessities such as food, housing, and healthcare – even if they have jobs.

 As costs continue to rise, so does the pressure on struggling households.

Scrap the cap

Because of the rising recent figures, there have been new calls for the benefit cap to be scrapped altogether.

Organisations and charities argue that   those who are already vulnerable are disproportionately affected. Families left without support are becoming increasingly reliant on food banks and other support services.

Those calling for an end to the cap argue that:

• those who are unable to secure stable work aren’t encouraged to find a job
• it pushes people deeper into poverty and worsens inequalities across different regions – especially in urban areas where housing costs are very high
• the policy doesn’t take into account the rising cost of living

Help if you’re affected

If you’re out of pocket because of the benefit cap, we can help by giving you free debt advice online or you can give us a ring.

Whether you need budgeting help, advice on your benefit entitlement or information on debt solutions, we’re here for you.

All advice is free and impartial. Some debt solutions are also free, some have a fee.