We are introducing a cap on the total amount of benefit that working-age people can receive so households on out of work benefits will no longer receive more in benefit than the average weekly wage earned by working families.
On the cap’s introduction in 2013, we estimate it will be set at £500 per week for couple and single parent households and £350 per week for single adult households without children. This will apply to all new universal credit claims.
Exemptions from the application of the benefit cap will be set out in regulations following the passage of the Welfare Reform Bill.
We are currently looking at how universal credit could transitionally protect particularly hard cases.