London's Poverty Profile has been created by one of London's largest charitable funders, Trust for London, and the independent think tank, New Policy Institute.
Families affected by the overall benefit cap
- In 2015, 10,500 families in London were affected by the cap.
- There were almost as many affected families in London as in the rest of England put together (11,000).
*2,400 families lost more than £100 per week.
Families affected by the overall benefit cap by cut in benefit
What does the graph show?
One of the most widely publicised benefit changes was the introduction of the overall benefit cap in 2013. This limits the amount of income a workless family could receive in benefit to £26,000 per year (or £500 per week). It had just been introduced when the last Poverty Profile was published and data on the number of people affected was not available. But it was clear that due to its high housing costs London would contain many of those affected - if a workless family is entitled to a high level of housing benefit they are much more likely to exceed the cap.
In 2015, 10,500 families in London were affected by the cap. There were almost as many affected families in London as in the rest of England put together (11,000). Figure 9.6 shows these families by the amount by which their benefit was cut. About a third of those affected in London were up to £25 a week worse off. At the other end of the scale 2,400 families lost more than £100 per week, higher than the number for the rest of England (1,500). London's higher housing costs also mean that the average cut is greater.
Around 1,000 households affected were single adults (whose weekly cap is lower at £350), but the remainder were families with children: 6,800 single parent families and 2,400 couple families. 6,500 families affected had at least three children meaning they had £500 to cover the rent of a three-bedroom property and other costs for the whole family. About half of those affected lived in social rented accommodation and half in private rented.
Stat-Xplore, DWP. The data is for February 2015.
Indicator last updated: 19 October 2015
Benefits & welfare reform indicators
- Out-of-work benefit claims in London
- Out-of-work benefit claims in London over time
- Housing benefit claimants in London
- Children in families receiving tax credits
- Changes to the overall benefit cap
- Number of JSA sanctions by age of claimant
- JSA sanction rate by ethnicity and age
- Moves by housing benefit claimants
- DLA caseload by care award type
- Disability benefits
- Benefit claim rates
- Housing benefit values
- Local Housing Allowance claims by borough
- The single room rate
- Council Tax Benefit reform
Explore by topic:
Explore by Borough:
- Barking and Dagenham
- City of London
- Hammersmith and Fulham
- Kensington and Chelsea
- Kingston upon Thames
- Richmond upon Thames
- Tower Hamlets
- Waltham Forest