This policy means that no household - no matter how many people live in it, and no matter their situation, can receive more than £26,000 per year in benefits.
The Work & Pensions Secretary, Iain Duncan Smith MP, says:
"It’s sheer madness that people on benefits can be getting as much as a higher-rate taxpayer earns. We need a welfare state that acts as a safety net and encourages people back to work, not traps them in out-of-work dependency." (reference)