A £500-a-week cap on the total amount of benefits that households can receive is being rolled out across England, Scotland and Wales from today.
The cap applies to couples and lone parents aged between 16 and 64, while a £350 limit applies to single people.
It is part of the government's major overhaul of the benefits system.
Housing benefit, jobseeker's allowance, and child benefit all count towards the cap.
Iain Duncan Smith says too many people are trapped on benefits Critics say the cap does not deal with underlying issues such as the cost of housing.
But Work and Pensions Secretary Iain Duncan Smith argues that too many people are trapped on benefits.
He said: "The benefit cap returns fairness to the benefits system.
"It ensures the taxpayer can have trust in the welfare system and it stops sky-high claims that make it impossible for people to move into work.
"The limit of £500-a-week ensures no-one claims more in benefits than the average household and there is a clear reason for people to get a job - as those eligible for Working Tax Credit are exempt."
The cap - not yet law in Northern Ireland - will be fully implemented by September 30.
The limit has been set to reflect the average working household income.
It has already been implemented in four London boroughs since April; Haringey, Enfield, Croydon and Bromley.
There is no cap on people who receive Disability Living Allowance or its successor, the Personal Independence Payment, as well some other benefits, such as industrial injuries benefit or a war widow or widower's pension.
The Department for Work and Pensions says the cap will save about £110m a year.
But Labour's Shadow Work and Pensions Secretary, Liam Byrne, said: "The benefit cap is a good idea in principle but its already fallen apart in practice.
"Ministers have bodged the rules so the cap won't affect Britain's 4,000 largest families and it does nothing to stop people living a life on welfare."
In a Twitter gaffe, David Cameron wrote of his support for the policy, but used the name of a spoof Iain Duncan Smith Twitter account by mistake.
The @IDS_MP account includes Tweets such as "I've always supported a Mansion Tax. Your Tax buys my Mansion. Chin chin!"
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