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The increased personal allowance will apply to all income for this tax year and so will be backdated to 6 April.
BBC: Full statement: Tax changes
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The Employment Allowance will also apply to charities and community sports clubs.
BBC: Budget 2013: National Insurance cut 'to boost jobs'
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Under this new type of market, employers give each employee a specific allowance that they apply toward the purchase of the health plan of their choice.
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The limit on benefits would apply to the total received from jobseekers' allowance, income support, employment support allowance, housing benefit, council tax benefit, child benefit and child tax credit.
BBC: George Osborne: Cap brought in on benefit claims
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The measure, which the government says it will also apply to Lords amendments on employment and support allowance (ESA), relates to the principle that the Lords cannot oppose tax and spending decisions agreed by the Commons.
BBC: MPs reverse Lords welfare defeats
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The cap will apply to the combined income from benefits including things like jobseekers allowance, housing benefit and council tax benefit.
BBC: George Osborne: Cap brought in on benefit claims
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The government says that, with public sector pay rises capped at 1%, a similar limit should apply to working-age benefits such as jobseeker's allowance, employment and support allowance and income support as well as elements of working tax credits and child tax credit.
BBC: Prime Minister's Questions: David Cameron v Ed Miliband