Limit on welfare support, introduced in 2013, leaves some with just £4 a day for each family member

Low-income families affected by the benefit cap are living on as little as £4 for each person a day, often in overcrowded, rat-infested and damp homes with little prospect of escape, according to a new study.

The cap puts a ceiling on the amount a working-age family can receive in welfare support if no one in the household is working or they are on very low wages. Families affected by it in many parts of the country are, in effect, trapped in poor quality, private rented properties they cannot afford, even though these are often already the cheapest homes available in their local area, the London School of Economics study said.