Latest DWP figures show the benefit cap affects 165,000 families, up 53,000 (48%) since February; the average deduction is £80 per family. DWP linked the rise to the two-child limit’s removal and above-inflation increases to basic Universal Credit.
The cap limits total Universal Credit; its monthly ceiling is £1,835 for most couples or claimants with children and £2,110.25 in Greater London. About 370,000 children live in capped households. Earlier DWP analysis estimated the April 2026 removal of the two-child limit would yield no income uplift for 50,000 families already at the cap; a further 20,000 were expected to gain only part of it. The cap was last raised in 2023 and remains frozen for 2026/27; its next statutory review is due in November 2027.
JRF senior policy adviser Iain Porter said debt repayments and the cap can leave families facing deep hardship, and called for a protected minimum floor in Universal Credit. He noted the basic rate for a single adult aged 25 or over is £98 a week. The DWP described the cap as a proportionate measure that encourages work, citing free school meals, expanded childcare and a £1bn Crisis and Resilience Fund it is creating.
