Number of households hit by benefit cap rises by a third in Milton Keynes

And a housing justice charity said the benefit cap is pushing households into homelessness, warning welfare cuts "risk exacerbating this problem".

New figures show the number of MK households on Universal Credit who were hit by the benefit cap rose by a third last year.

The data from the Department for Work and Pensions figures shows 743 city households receiving the benefit had their income capped in November 2024. This was up 35% from 550 a year earlier.

The news comes as the Government announced reforms to the welfare system, which include a reduction to the health element of Universal Credit – a benefit aimed at helping people on a low income or those who are out of work, that is usually spent on housing costs, childcare and other living costs.

The current benefit cap levels, which apply to both Universal Credit and Housing Benefit, were last increased in April 2023.

They stand at £22,020 per year for families with children across Britain, and £25,323 for those in Greater London.

Nationally, 113,000 households had their benefits capped in November 2024 – up 47% from 77,000 a year earlier.

Of those, 112,000 (98%) were capped on Universal Credit and 1,800 (2%) on Housing Benefit.

Separate figures show there were 7.5 million people claiming Universal Credit in Britain in January.

On Tuesday (March 18) the Government said it will introduce an above-inflation rise to the standard Universal Credit allowance by 2029-30 – adding £775 in cash terms annually.

But the health element allowance will be almost halved for new claimants from April next year while those already claiming will have their amount frozen until 2029-30.

Polly Neate, chief executive of Shelter, said: "With a record number of children homeless and too many families at breaking point, struggling to balance soaring housing and living costs, we cannot continue to turn a blind eye to the solutions."

She said the benefit cap is pushing increasing numbers of people into homelessness and warned the cuts to disability benefits presented by the Government "risk exacerbating this problem, increasing the likelihood of homelessness amongst disabled people".

She called on the Government to scrap the benefit cap now "as an immediate relief” and sustainably invest in the building of social housing to tackle homelessness.

"Not only would this give families the security of a permanent home, but it would also save billions in housing benefit currently spent lining the pockets of private landlords," she added.

A Government spokesperson said: "Poverty is a scar on our society, which is why we’re taking action to give people the tools they need to build long-term stability and get into good jobs through our Get Britain Working White Paper."

They added, alongside working on the labour market and economic activity, the Government is increasing and adapting a series of welfare benefits for those who need it the most, which includes an above-inflation rise to the standard Universal Credit allowance.

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