A cap on benefits in 4 London boroughs begins today ahead of a national roll out in the UK from July. The areas of Croydon, Bromley, Haringey and Enfield in the British capital will see couples and single parents receive no more than stg£500 (€ 585) a week.
The cap will come into force across England, Scotland and Wales from July. The limit is being brought in to bring benefits into line with average income.
Last week the government there claimed the number of people expected to be hit by the cap had fallen from 56,000 to 40,000, with 8,000 claimants finding work through the Jobcentre Plus scheme.
The Work and Pensions Secretary Iain Duncan-Smith said the cap had provided a "strong incentive" for people to look for jobs, even before it had started to affect their incomes.
"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 working families are over," he said.
The UK Minister for Employment Mark Hoban says the system is about fairness.