Government says it has ‘no plans’ to change the benefit cap grace period

Minister confirms that, as at August 2020, there were more than 160,000 households with a grace period due to end in December 2020, but clarifies that not all of these will necessarily be in scope of the cap

The government has 'no plans' to change the benefit cap grace period, the Minister for Employment Mims Davies has confirmed.

Responding to a written question about the number of universal credit claimants who are currently within a nine-month benefit cap grace period, that is due to end in December 2020, Ms Davies clarified that - 

'As at August 2020, there were 160,300 universal credit households with a grace period due to end in December 2020. The grace period is applied irrespective of whether or not the household has sufficient benefit income to be in scope for the cap. This ensures that a claimant will benefit from the grace period exemption should any change of circumstances bring them into the scope of the cap during that period. This does not necessarily mean that all of these claimants will actually be capped in December when their grace period ends.'

Pressed on what plans the Department had to amend the length of the benefit cap grace period - that applies if a household has a sustained work record with monthly earnings of at least £604 for the past year prior to earnings falling below that level - Ms Davies added -

'There are currently no plans to change the benefit cap grace period. The benefit cap provides fairness for hard-working taxpaying households, whilst providing a reasonable safety net of support for the most vulnerable.

Ms Davies' written answer is available from parliament.uk