The government is phasing in the new lower benefit cap between 7 November and 23 January, with more than 60,000 families expected to have their income drastically reduced.
The new lower cap of £23,000 a year for families in London and £20,000 a year outside London replaces a national cap of £26,000.
The higher cap currently affects 20,000 families, but the new lower cap is expected to affect 88,000 families.
Families already subject to the higher cap will be especially hard hit, with families outside London losing £6,00 per year while those in London will lose £3,000.
The Institute for Fiscal Studies has stated that the new cap may affect families with as few as two children who are renting in the private sector, whereas the higher cap primarily hit families with large numbers of children.
In addition, whilst the higher cap primarily affected families in London, the new cap will hit claimants across the UK.
The majority of those affected will either be sick or disabled claimants in receipt of employment and support allowance or lone parents getting income support
Work and pensions secretary Damian Green enthused about the cuts to the incomes of disabled claimants and lone parent families, saying:
“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.”