Families in London and surrounding areas will be hardest hit by new benefit caps which come into force from Monday (November 7).

Across the country, 88,000 households will be affected by the changes – with 22 per cent of those (19,000) in London and another 13 per cent (11,000) in the south east.

The government says benefits reductions will encourage people to work, but there are concerns about the detrimental impact this will have on families as at least half (51 per cent) of households affected will lose £50 per week.

Who will be affected?

The cap applies to people aged 16 to 64 years old, covering 88,000 homes across the UK.

The limit for couples with or without children living with them and single parent families is currently £26,000 per year. This will drop to £20,000 for those who live outside London and to £23,000 for those living within London.

For single people living without children the current cap of £18,200 will drop to £13,400 for those living outside London and to £15,410 for those located within London.

The south London borough which will be most affected is Croydon, where an estimated 700 households will suffer.

The below figures show the approximate number of households per borough that will be affected by the benefits cap reduction:

Bexley - 300

Bromley - 200

Croydon - 700

Dartford - 100

Elmbridge -100

Epsom and Ewell - 100

Greenwich - 400

Kingston – 200

Lewisham – 600

Merton - 200

Mole Valley -100

Richmond - 200

Sutton - 100

Wandsworth - 600

The benefits cap applies to the combined income from:

  • Bereavement Allowance
  • Carer’s Allowance
  • Child Benefit
  • Child Tax Credit
  • Employment and Support Allowance except where the support component has been awarded
  • Guardian’s Allowance
  • Housing Benefit
  • Incapacity Benefit
  • Income Support
  • Jobseeker’s Allowance
  • Maternity Allowance
  • Severe Disablement Allowance
  • Universal Credit
  • Widowed Parent’s Allowance
  • Widow’s Benefit

The following benefits aren’t affected by the cap:

  • Working Tax Credit
  • Armed Forces Compensation Scheme
  • Armed Forces Independence Payment
  • Attendance Allowance
  • Disability Living Allowance
  • Employment and Support Allowance (if you get the support component)
  • Industrial Injuries Benefits (and equivalent payments as part of a War Disablement Pension or the Armed Forces Compensation Scheme)
  • Personal Independence Payment (PIP)
  • Universal Credit payment for ‘limited capability for work and work-related activity’
  • War pensions
  • War Widow’s or War Widower’s Pension

Reactions to the benefits cap

The Gingerbread charity said 43,700 single parents with a child under the age of five would be hit by the cap.

Gingerbread policy officer Laura Dewar said: "The new benefit cap is likely to drive more single parents into poverty.

"Many will have to choose between the roof over their children's heads and other essentials such as food and heating.

"Parents tell us they are doing all they can to find work, but all too often jobs and available childcare just don't match up - single parents with toddlers can't simply work a night shift or at weekends.

"Those set to be hit by the cap are calling Gingerbread panic-stricken, desperate to find a way to protect their children.

"For all the Government's talk about work incentives, it has nothing to say on the families who can't find work and the devastating impact it will have on children who face losing their homes or being pushed in poverty."

A Department for Work and Pensions spokesman said: "We are committed to helping lone parents into a job which fits in around their caring responsibilities, which is why we are doubling the amount of free childcare available.

"We know that work is the best route out of poverty, and there are now record numbers of lone parents in work.

"The benefit cap provides a clear incentive to move into a job, even if it is part time, as anyone eligible for working tax credits is exempt.

"Even with the new cap, lone parents can still receive benefits up to the equivalent salary of £25,000, or £29,000 in London."

  • Anyone with questions about how their benefits might change should contact the Department for Work and Pensions on 0345 600 0723, for Universal Credit queries, and 0345 605 7064 for any other benefits.

If you're affected by these changes to benefits, or if you've got a story for us, call 020 8722 6301 or email digitalmedia@london.newsquest.co.uk