THE HOUSEHOLD benefit cap has been criticised by the head of a homeless charity the week after official figures were released.

Since its introduction in November last year, 378 households in Reading have been affected by the lower benefit cap, which limits work-less households to £20,000 of benefits a year.

A freedom of information request submitted by charity Shelter found the average reduction per household was £60.28 a week or £3,120 a year, with 81 households missing out on more than £100 a week.

There were also 16 families housed in temporary accommodation who have been affected by the cap, to the weekly average tune of £67.46.

Ian Caren, CEO of Reading homeless charity Launchpad, argued such changes could have a knock on effect, with squeezed households at risk of missing rent and facing homelessness.

He said: “It will have an impact due the shortage of affordable accommodation.

“The shortage is a national disgrace, people need housing.

The Department for Work and Pensions (DWP) claim the cap is based on the principle that 'work should always pay more than welfare.'

Back in November Secretary of State Damian Green said: “By making sure that those people who are out of work are faced with the same choices as those who are in work, the benefit cap has been a real success.

“By lowering the cap today, we are ensuring the values of this government continue to chime with those of ordinary working people and delivering on our commitment to make sure work pays more than welfare.”