London’s unfair benefit cap 

Londoners who rely on our welfare system are being set up to fail.

Our Government has set an unrealistic cap on financial support. In a city with some of the world’s highest rents, some Londoners must use money for bills and daily living costs to pay their rent. Some are losing hundreds of pounds because of the overall benefit cap.

No one should choose between paying for a roof over their head or having food on the table.

The UK Government must review the benefit cap so it is proportional to London’s rent levels. Londoners deserve their full welfare support.

The table below shows the unfair benefit cap’s impact on Londoners vs. those in Manchester and Birmingham, the UK’s next two largest cities. Only three of London’s 14 areas allow residents to claim their full Universal Credit allowance due to the benefit cap. In parts of London, residents cannot even claim their housing allowance because it is more than the benefit cap. In most London areas, residents are losing welfare support as their housing allowance plus Universal Credit exceeds the benefit cap. This is most noticeable in Central London, where residents lose £415.55 in welfare support.

Area	Maximum monthly allowance for a one-bed flat (LHA)	Standard Universal Credit allowance (to cover all bills and expenses)	Overall benefit cap (single adult)	Money left over for all bills and living expenses	Lost benefits due to benefit cap
Central London	£1,436.02	£393.45	£1,413.92	-£22.10	-£415.55
Inner East London	£1,436.02	£393.45	£1,413.92	-£22.10	-£415.55
Inner North London	£1,436.02	£393.45	£1,413.92	-£22.10	-£415.55
Inner South West London	£1,416.09	£393.45	£1,413.92	-£2.17	-£395.62
Inner West London	£1,346.28	£393.45	£1,413.92	£67.65	-£325.81
Inner South East London	£1,291.28	£393.45	£1,413.92	£121.94	-£271.51
Outer East London	£1,196.69	£393.45	£1,413.92	£217.23	-£176.22
Outer South West London	£1,196.69	£393.45	£1,413.92	£267.06	-£176.22
Outer North London	£1,146.86	£393.45	£1,413.92	£316.94	-£126.22
North West London	£1,096.98	£393.45	£1,413.92	£366.81	-£76.51
Outer South East London	£1,047.11	£393.45	£1,413.92	£393.45*	-£26.64
Outer West London	£997.27	£393.45	£1,413.92	£393.45*	N/A
Outer North East London	£997.27	£393.45	£1,413.92	£393.45*	N/A
Outer South London	£947.40	£393.45	£1,413.92	£393.45*	N/A
Central Greater Manchester	£772.89	£393.45	£1,229.42	£393.45*	N/A
Birmingham	£693.12	£393.45	£1,229.42	£393.45*	N/A