22 December 2020
The benefit cap grace period gives claimants nine months’ exemption from the cap, starting from when their earnings first fall below the threshold, if in the previous 12 months they have earned over £604 in every month. COVID-19 has meant that hundreds of thousands of households’ earnings have fallen below the threshold. Some did not have a strong work history and were capped immediately, and some were able to find enough earnings to move above the cap. However, many households are stuck in limbo, where they are not yet capped due to the grace period, but are unable to find work as jobs are so scarce.