Markos Chrysostomou, director of Haringey CAB, said they were already seeing people affected by the changes. “Thousand of residents are likely to see a decrease in their incomes due to these changes,” he said.

“Anyone in this situation should contact us on our dedicated Welfare Reform advice line (020 8347 3119) so we can assess and advise as to whether the changes have been applied correctly, whether they are entitled to any other sources of income and how they can ensure essential bills are paid and they keep their homes.”

But what is the benefits cap?

It is a limit on the total amount of benefit payments which working-age people can receive, with the idea being that workless households should no longer receive more in benefits than the average earnings of working households.

That means a couple with or without children will now receive a maximum of £500 per week, while a single parent will also be allowed a maximum of £500. A single person without children, however, would receive just £350.

Importantly, it does not take into account the cost of living in London compared to the rest of the country, which is significantly higher. A survey by the Office for National Statistics in 2011 found Londoners pay on average 6.7 per cent more for goods and services than those outside the capital, while the average monthly rent in private accomodation is £1,202 according to London Councils.

What’s more, the benefits cap comes at a time when a number of other changes to welfare are being made, including the abolition of council tax benefit and the introduction of the much-maligned bedroom tax on “underused” rooms.

So, what will the effect actually be on people in Haringey? Until the benefit cap comes into force, no-one can say for sure. But, for example, an unemployed family with four children in private rented accommodation costing £250 per week will lose a little more than £140 per week in benefit payments. This reduction will be taken from their housing benefit payment, which may lead to rent arrears and put them at risk of eviction.

They will also have to pay 20 per cent of their council tax bill – which, for a Band D property is £21.81 per month. Prior to the April changes they would have received a full council tax rebate.

There will actually be 29 households in Haringey entitled to just 50 pence in housing benefit under the new rules, according to data held by Haringey Council. Of these, 13 are renting privately, 17 are single-parent homes, and altogether there are 145 children in these households.