ABOUT 100 families in the Swindon borough are to be hit by the benefits cap, which comes into force on July 15.

Couples and single parents, regardless of the number of children they have, will not receive more than £500 a week, while a £350 limit applies to single people.

The cap, part of the Government’s wide-ranging welfare reforms, is said to reflect the average working household income and aims to encourage people into work.

Swindon Council has previously expressed concerns that the cap and other benefits changes could potentially place more children at risk, lead to an increase in rent arrears and ultimately evictions and homelessness.

Jobseeker’s allowance, income support, child benefit and housing benefit are on a long list of payments which count towards the calculation of the cap.

It does not apply to pensioners and those receiving working tax credits, disability living allowance, personal independence payments, attendance allowance, the support component of employment support allowance, industrial injuries benefits, or war widows’ and widowers’ pensions.

Swindon Council says most affected claimants in the borough have more than three children.

In the first instance, the cap will be administered jointly by the Department for Work Pensions, run by Ian Duncan Smith, and councils through deductions from housing benefit payments, which can be reduced to a minimum of 50p a week.

Of those affected in Swindon, about 28 households have income above the cap of £10 a week or less.

Ten households have excess income of between £10 and £24.99 a week, 44 have between £25 and £49.99, 26 have between £50 and £99.99, 38 have between £100 and £199, and six households have between £200 and £300 a week.

The largest amount currently received in benefits by one household is £773.42 a week. Their housing benefit is £96.41 a week.

The cap will be implemented over a five-week period.

The council says it represents a £250,000 initial loss to Swindon’s economy.

A council spokesman said: “It is hoped that those individuals who are subject to the cap can continue to pay their rent from other benefits they will continue to receive, but officers, the DWP and third sector partners are working together to produce a range of support measures.

“These will include advice and support on obtaining employment (if anyone obtains employment of over 16 hours per week in the household they will not be subject to the cap), advice on budgeting, housing advice and information on any discretionary payments that may be available.”

Anne Snelgrove, Labour’s prospective Parliamentary candidate for Swindon South, said: “The way the benefits cap is being introduced by the Coalition Government is very clumsy and I think likely to shock a number of families who are really hard hit by other changes that are happening to benefits.

“So I think we need to look very carefully at the impact on individual families.”

South Swindon MP Robert Buckland said: “The basic principle of the benefits cap is fairness. The Government is supporting hardworking people by making sure that work pays. No household should receive more on benefits than they could earn in a job.

“And it is having a positive effect: since the cap was announced, it’s estimated one in four who would have been affected have found employment.”