Housing benefit to be capped

Housing benefits will be capped at £400 for a four bedroom property by April next year.

The cap will see 21,060 people lose an average of £74 per week.

It is argued that the cap will force people to move out of expensive areas, such as London, into the suburbs.

Housing benefits cost the taxpayer around £20bn a year. The cap will see that people can no longer receive state handouts to live in expensive properties.

The housing benefit caps in April 2011 will stand at:

- £250 for a one bedroom property

- £290 for a two bedroom property

- £340 for a three bedroom property

- £400 for a four bedroom property