diff --git a/app/models/case_log.rb b/app/models/case_log.rb
index 7a9bf6344..16d16bed0 100644
--- a/app/models/case_log.rb
+++ b/app/models/case_log.rb
@@ -253,6 +253,7 @@ private
     self.has_benefits = get_has_benefits
     self.nocharge = household_charge == "Yes" ? "No" : "Yes"
     self.layear = "Less than 1 year" if renewal == "Yes"
+    self.underoccupation_benefitcap = "No" if renewal == "Yes" && year == 2021
   end
 
   def process_postcode_changes!
diff --git a/spec/models/case_log_spec.rb b/spec/models/case_log_spec.rb
index baf63b4da..7e7d23705 100644
--- a/spec/models/case_log_spec.rb
+++ b/spec/models/case_log_spec.rb
@@ -1160,6 +1160,7 @@ RSpec.describe CaseLog do
           managing_organisation: organisation,
           owning_organisation: organisation,
           renewal: "Yes",
+          year: 2021,
         })
       end
 
@@ -1168,6 +1169,12 @@ RSpec.describe CaseLog do
         expect(record_from_db["layear"]).to eq(2)
         expect(case_log["layear"]).to eq("Less than 1 year")
       end
+
+      it "correctly derives and saves underoccupation_benefitcap if year is 2021" do
+        record_from_db = ActiveRecord::Base.connection.execute("select underoccupation_benefitcap from case_logs where id=#{case_log.id}").to_a[0]
+        expect(record_from_db["underoccupation_benefitcap"]).to eq(2)
+        expect(case_log["underoccupation_benefitcap"]).to eq("No")
+      end
     end
   end