A BENEFIT cap - affecting around 900 families - will take effect in Croydon today.
Couples and single parents will now receive no more than £500 a week, while single people will be limited to just £350.
The cap, which will be imposed across England and Wales this summer, is being launched in three other London boroughs - Haringey, Enfield and Bromley - as well this week.
Croydon Council originally opposed the benefit cap pilot, but dropped their opposition after a meeting with the government.
Jobseeker's allowance, income support, child and housing benefit all count towards the total, but disability benefits do not.
Ministers hope the new scheme will save around £110 million a year.
The council has written to all the families likely to affected by the cap.
Former chief executive Jon Rouse warned in January that the changes would lead to increased homelessness and deepen the borough's housing crisis.
Residents looking for help and support following the welfare reforms can visit www.croydon.gov.uk/benefitchanges.
The controversial changes prompted debate on social networking site Twitter.
Nina de Winter tweeted: "Benefit payments cap roll-out begins - for once I think they've done it right!"
But Luke Blackheath posted: "This could be just awful for many families in London."
