The benefits cap was on trial in the London boroughs of Bromley, Croyden, Enfield and Harkingey since April this year, before being rolled out nationwide.

Defending the new policy on BBC Breakfast this morning, Work and Pensions secretary Iain Duncan Smith “A very, very significant number have gone out to work; in fact, what the jobcentre staff have told us as we have been going round is that they have seen a genuine increase since they have alerted people to the fact that they are likely to be in the cap,”

“This is both about saving money and, more particularly, about changing a culture that had left families, particularly large families, finding it easy and a reality for their lives to stay out of work on taxpayers’ benefits,” said the Tory minister.

“The key principle behind this all over the country is that those who work, those who are trying to do the best in their households, do not see others who are down the road, who are on benefits, on welfare, actually getting more than they do.”

The new cap is predicted to affect Londoners and those living in the South East the most due to high living costs and rent rates. The cap is predicted to save the government £110m in the first year.

More than 7,000 low income families living in London will lose over £100 a week, according to figures from