Londoners are being ‘unfairly penalised’ by the benefit cap, it has been claimed.

Chair of London Councils, Mayor Jules Pipe, spoke out after data from the Department for Work and Pensions released yesterday showed that nine out of ten local authority areas most affected by the benefit cap were in the capital.

The data showed that 15,342 households in London are affected, just under half of the 32,940 affected nationally.

Mayor Pipe said: ‘Under the Government’s welfare reforms, just under half of all households which have had their benefits capped live in the capital.

‘Londoners are being unfairly penalised by a policy that fails to recognise that they face higher rents, a higher cost of living and strong competition for jobs.’

London Councils, which represents the capital’s 32 local authorities and the City of London, has called for an urgent review of the cost of welfare reform.