A limit on the amount of welfare benefits people can receive was introduced across four London boroughs on Monday as part of a policy set to be rolled out nationally from July.
The cap being rolled out in Haringey, Enfield, Croydon and Bromley will see couples and single parents paid no more than £500 a week — or £26,000 a year — in benefits.
The limit for single people without children is £350, though there are some exemptions, including households which include somebody on disability living allowance along with those who receive a war widow?s or widower’s pension.
The plan has been criticised by some senior Church of England figures including Archbishop of Canterbury Justin Welby and charities as penalising the vulnerable.
The limit is due to be rolled out across England, Scotland and Wales between July 15 and September.
The move is part of the government’s efforts to cut spending, with the annual limit said to reflect the average working household income.
The DWP said that households on out-of-work benefits “will no longer receive more in benefits than the average weekly wage, after Tax and National Insurance” following the imposition of the cap.
The four London boroughs were chosen “as London has the highest percentage of potential benefit cap claimants and a diverse cross section of residents,” the statement said.
Work and Pensions Secretary Iain Duncan Smith said the cap was “a key part” of the coalition government’s reforms “to restore fairness to the welfare state.”
“It will provide clear incentives for people to get into employment and will give taxpayers the assurance that high claims out are no longer possible,” Duncan Smith said.
“We have also ensured vulnerable people are protected with clear exceptions for people claiming disability benefits.
“But we have a very clear message: we will provide support to those who need it, but the days of outrageous claims giving people incomes far above those of hard working families are over.”
A total of 43 bishops last month signed an open letter to the Sunday Telegraph against the bill which contained the measures.
Welby issued a statement saying: “Politicians have a clear choice. By protecting children from the effects of this Bill, they can help fulfil their commitment to end child poverty.”
Benefit payments cap introduced in London
