Low-income families are being forced out of central London as a result of soaring rents and ideological government benefit cuts, new Labour Party research showed this morning.

Analysis by Labour London Assembly Member Fiona Twycross AM has shown a 27 per cent drop in the number of private renters claiming housing benefit in central London since the introduction of the government’s cap on Local Housing Allowance was introduced in April 2011.

By contrast, the number of claimants in outer-London boroughs has increased by 9 per cent.

The cap on the total amount in benefits that people of working age can claim stands at £500 per week for families with children and £350 for single people.

Despite Mayor Boris Johnson’s pledge that families would not be “evicted from the place they have been living and where they have put down roots” Ms Twycross said the figures suggested that low-income families were being forced out of central areas as a result of rising rents and cuts to benefits.

London Assembly Labour group economy spokeswoman Ms Twycross said: “Families who have lived their whole lives in central London are being forced out by a perfect storm of falling wages, rocketing house prices and government cuts.

“The rising cost of living and the housing benefit cap have hit London hardest pushing a quarter of low income households out of central areas.

“If the trend continues, central London will become the reserve of the privileged, a no-go zone for lower income families. That shouldn’t be an acceptable outcome for anyone.”