The benefits cap was brought in by the then Work and Pensions Secretary Iain Duncan Smith in 2013
The new figures released by ministers shows that since the benefits cap was introduced in 2013 thousands of people who had been living off the state have been forced to get a job.
The Department for Work and Pensions estimates that 26,000 households which were jobless in 2013 now have at least one adult in employment.
Despite the huge success in tackling the “something for nothing" scrounger culture, Labour has vowed to end the benefits cap.
- Benefits cheats who stole £134,000 walk free from court
- Cuts to heap for suffering bereavement families
The figures show that 180 households had been receiving at least 57,000 a year in benefits.
At the time of its introduction it was claimed by ministers that some families received more than £100,000 a year in benefits to pay for prized city centre properties in London.
It is understood that 170 of the households were on £68,000 – almost three times the average wage – costing the taxpayer £11 million annually.
It is estimated that 26,000 households which were jobless now has at least one adult in employment Benefits mum: Cheryl Prudham Fri, December 18, 2015
Unemployed Couple Robert and Cheryl Prudham receive around £38,000 a year in benefits for their 12 children. The couple have spent thousands on holidays and designer clothes, here they are with trolley loads of Xmas presents.
SWNS.com 1 of 15
Cheryl Prudham and her family at home in Kent, the family receive £38000 a year in benefits
The cap was brought in by the then Work and Pensions Secretary Iain Duncan Smith as part of a revolutionary package of reforms to encourage people to get a job and not live off benefits.
People in tens of thousands of households have moved into work
Work and Pensions Secretary Damian Green
Get Quotes on Home Insurance
It came with the creation of the living wage and the universal credit to make welfare simpler.
Hailing the success of his predecessor, Work and Pensions Secretary Damian Green said: “Since the benefit cap was introduced in 2013, people in tens of thousands of households have moved into work.
“The new lower cap continues to build on that success by incentivising work.
“There are over three quarters of a million job vacancies across the country, and we are determined to do everything we can to help people into work.
“We are creating a country which works for everyone, and the lower cap ensures the system remains fair to both the taxpayers who pay for it and to those people who need it."
The new benefit cap was originally set at the average wage of £26,000 a year and has been fiercely opposed by Labour.
The cap has since been reset at £23,000 in Greater London to reflect higher rent costs
Jeremy Corbyn has said he would abolish the benefit cap and been criticised for instead proposing a “maximum wage" cap.
His first act as Labour leader was to tell trade union leaders at the TUC conference that he wanted to “remove the whole idea of the benefit cap altogether"
The cap has since been reset at £20,000 a year outside London and £23,000 in Greater London to reflect higher rent costs.
For single people without children, the cap is £15,410 in Greater London and £13,400 elsewhere.
Jeremy Corbyn has been criticised for proposing a 'maximum wage' cap
Anyone working and receiving Working Tax Credits is exempted from the cap, as are households where someone receives DLA, PIP, or the support component of Employment Support Allowance.
According to the new figures an extra 20,000 households had their housing benefit capped in November last year up 1 per cent from 2015.
Half of those households only had a cap of £50 a week or less.
Meanwhile London is the place with the most households where the benefit cap has been applied.
- Poorer families worse off by 2020 as prices outstrip welfare rises
- Syrian families given cash cards of benefits made up of YOUR money
- Woman claimed she was single mum caught gushing about marriage online