The number capped is almost exactly what @policy_practice estimated in April in work for the GLA. This was based on the interaction of increased LHA and the bencap. But the huge increase in those capped on UC indicates that new claims are also affected (1/2) https://twitter.com/WRhadwen/status/1291342040064757761
The DWP was insistent that this wouldn't affect those hit by COVID19 economic fallout due to the grace period. But all indications are that those on lower incomes are most likely to lose jobs. So those that didn't earn enough to get grace period protection
The bencap is hitting those that the Government didn't intend to be affected. This needs an urgent review. Our analysis http://policyinpractice.co.uk/wp-content/uploads/The-interaction-of-COVID-19-measures-and-the-Benefit-Cap-on-low-income-Londoners_pub-1.pdf shows greatest impact on private renters. Implications for homelessness support are huge.