UK Government Freezes Benefit Cap for 2027-28 Tax Year

The Department for Work and Pensions announced plans to freeze the benefit cap for the 2027-28 tax year. This measure ensures the maximum amount claimants can receive remains unchanged from April 2027 to April 2028, despite a September inflation rate of 3.6% reported by the Office for National Statistics.

For couples or single claimants with a qualifying-age child, the annual maximum will remain at £22,020, increasing to £25,323 for those in Greater London. Single adult households without children will see their annual maximum stay at £14,753, or £16,967 in Greater London. The freeze affects several payments, including Jobseeker’s Allowance, Housing Benefit, and Universal Credit.

Certain groups are exempt from the freeze, including those receiving war pensions or disability-related payments. Additionally, exemptions apply to individuals receiving Universal Credit due to being carers or having a disability, as well as those with combined monthly earnings of £881 or more after tax and National Insurance.