Benefit cap earnings threshold raised to £881

The earnings threshold for exemption from the benefit cap rose to £881 a month from April 2026, having been £846 before that, according to guidance published by Disability Rights UK¹. The change sits alongside a wider set of Universal Credit amounts that took effect in the same month.

The benefit cap limits the total amount of benefits, including Universal Credit, that a household can receive each month¹. Claimants whose earnings reach the threshold are no longer subject to that cap. The figure is quoted in the guidance as "(£881 from April 2026; £846 before that)"¹.

Other Universal Credit elements also changed from 6 April 2026. The limited capability for work-related activity (LCWRA) amount is now paid at two rates: a higher rate of £429.80 a month and a lower rate of £217.26 a month¹. The higher rate applies to people already entitled to the LCWRA amount by 6 April 2026 and to some protected groups, while the lower rate applies to most new claimants¹. Protected groups include people nearing the end of their life and those meeting the "severe conditions criteria"¹.

Work allowances, which let claimants keep some earnings before Universal Credit is reduced, are £427 a month where a housing costs amount is included and £710 a month in any other case¹. Earnings above the allowance reduce Universal Credit by 55p in the pound¹.

Standard allowances and other amounts for 2026 are set out in the same guidance:

Universal Credit element	Monthly amount
Standard allowance, single under 25	£338.58¹
Standard allowance, single 25 or over	£424.90¹
Standard allowance, joint claimants both under 25	£528.34¹
Standard allowance, joint claimants where either is 25 or over	£666.97¹
Child amount, each child	£303.94¹
Child amount, eldest child born before 6 April 2017	£351.88¹
Carer amount	£209.34¹
Childcare costs amount, maximum for one child	£1,071.09¹
Childcare costs amount, maximum for two or more children	£1,836.16¹

The guidance also lists disabled child additions of £514.71 a month at the higher rate and £164.79 at the lower rate¹.

"(£881 from April 2026; £846 before that)."

Disability Rights UK, How is Universal Credit worked out?¹

Why it matters for households

The cap sets a ceiling on the total benefits a household can receive, so the earnings threshold determines when that ceiling stops applying. A household whose monthly earnings reach £881 from April 2026 is exempt from the cap, where previously the figure was £846¹. For households earning close to that level, the change means the point at which the cap lifts has moved.

The LCWRA change affects people assessed as having limited capability for work-related activity. Those already entitled to the amount by 6 April 2026 keep the higher rate of £429.80 a month for as long as they continue to be assessed as having that capability, and people already waiting for a work capability assessment by that date can also receive the higher rate if the assessment later confirms eligibility¹. Most new claimants receive the lower rate of £217.26¹.

Work allowances affect how much a household can earn before Universal Credit starts to be reduced. The £427 and £710 rates apply where the claimant or their partner has limited capability for work or is responsible for a child or qualifying young person¹. Earnings above the allowance reduce the award by 55p for each pound¹.

What happens next

The guidance does not set out further dated changes to the cap threshold or the Universal Credit amounts beyond those taking effect from 6 April 2026¹. Transitional elements paid to people moved onto Universal Credit from earlier means-tested benefits are reduced each April when benefits are uprated, and are also reduced when a claimant becomes entitled to a further amount such as the child amount¹.

Sources1 cited