Research commissioned by the Department for Work and Pensions into the impact of the cap found that out of eight case study local authority areas, two that were in London were both concerned about finding accommodation for homeless families.
The cap, introduced in April 2013, limits the total amount of benefits that most jobless working-age households can receive to £500 a week for couples and families, and £350 a week for single people without dependent children.
Greater numbers of people in London have been affected by the cap than other areas – mainly due to the higher cost of housing.
The report found that both London authorities in the study had experienced increased problems in finding accommodation that could be afforded below the cap for families that had presented as homeless and were being put up in temporary accommodation.
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