Nearly 2,000 families have been hit in the deprived East End of London by Housing Benefits being capped in April, it has emerged.

Average loss to the 1,900 families in Tower Hamlets is between �29 and �33 a week, according to Works & Pensions Under Secretary Lord Freud.

But they are getting up to nine months’ ‘transitional protection’ from the date their claim is reviewed by the local authority, he told Baroness King of Bow in response to her Parliamentary Question.

This allows them “more time to adjust to the changes,” the former Bethnal Green & Bow MP was told.

The benefits have switched from being tied to market rents to allowance rates at 30 per cent, which means average losses are �23 for one bedroom, �33 for two and three bedrooms and �29 for four bedrooms.