From 15 April 2013, a new cap on the total amount of welfare benefits that people of working age can claim will be introduced in stages. The London boroughs of Bromley, Croydon, Enfield and Haringey are to be the first. The cap will then be rolled out to the remainder of the country by the end of September 2013.
Most benefits including housing benefit are taken into account. The limits are to be £500 per week for families with children and £350 per week for individuals.
The worrying part for landlords is that any benefits received that would take the claimant above these levels will be deducted from their housing benefit. It will be up to to the claimant to make up any shortfall in the rent.