The benefits cap is costing the poorest households almost £2000 a year and must be scrapped, according to campaigners.

Chancellor Rishi Sunak is being urged to end the cap with even more people expected to be sucked into it in the next year.

Poverty Alliance has released new figures showing outside London the cap is going to cost households £1800 next year.

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The cap has been in place since 2013, introduced by former Conservative chancellor George Osborne.

Poverty Alliance said the £1800 figure is what people would have received if the cap had risen in line with prices.

The number of households who will be affected by the cap is predicted to rise by 30,000 next year when benefits go up in line with inflation in April.

The campaigners have written to the Chancellor asking him to scrap the cap or raise it in line with living costs.

Peter Kelly, director of the Poverty Alliance, said: “The benefit cap is completely unjust and should have no place in a compassionate society. It cuts the lifeline that people need and are entitled to.

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“The present crisis is simply the latest episode of an ongoing injustice, where people’s incomes have fallen and the social security net that we all rely on has been deliberately cut, with the benefit cap being just one example. 

“The very least the Chancellor can do is to make sure that the cap is raised in line with the real cost of living. Better still, he should find the courage and compassion to scrap the cap altogether.”

The Scrap the Cap campaign is supported by more than 100 organisations across the UK including the Church of Scotland, Save the Children UK, the Child Poverty Action Group, One Parent Families Scotland, and the Trussell Trust.

Studies show the impact of the cap has included families evicted from homes, and an increase in debt and greater use of food banks.

With rising bills for food and energy families have reported they do not have enough to cover basic costs. 

A Government spokesperson said: “The benefit cap, up to the equivalent salary of £24,000, balances fairness for taxpayers with providing a vital safety net.

“We keep the cap under review and any revision would align with the timing of decisions on uprating benefits, with changes taking effect the following April.

“We understand that people are struggling with rising prices which is why we have acted to protect the eight million most vulnerable families through at least £1200 of direct payments this year.

"All households will receive the £400 energy payments, 80% will get a £150 council tax rebate and those on the lowest income will get £650 in Cost of Living Payments – none of these payments count towards the benefit cap.”