The social action arm of the Catholic Church in England and Wales has said that the Government's Budget announcement today will have "severe consequences" for society's most vulnerable individuals. Following the announcement by the Treasury that the annual household benefit cap will be reduced to £23,000, Helen O’Brien, chief executive of CSAN, said: “The further capping of benefits will have severe consequences. The impact of the benefit cap has been felt hardest by households in London than elsewhere due to the cripplingly high cost of housing. The further lowering of the cap is only going to push families deeper into poverty or force them to move away from their family and their community. "Families outside the capital are set to lose almost a quarter of their welfare support; it is inconceivable to think this will not lead to a further increase of people visiting foodbanks and relying on charities just to get by.” During his budget today, the Chancellor of the Exchequer, George Osborne, also announced that tax credits and universal Credit will be restricted to two children per family, affecting those born after April 2017. Mr Osborne also announced the introduction of a "Living Wage" at £7.20, beginning next April which will rise to £9 an hour by 2020 and replaces the minimum wage which is currently £6.50. Helen O'Brien described tax benefits as a "vital lifeline". She said: “The number of working households in poverty has been rising over recent years, and for these people working tax credits have proved a vital lifeline. Therefore, whilst the announcement to increase the minimum wage is welcome, these changes to tax credits will mean people on low-incomes are still set to suffer. "For many low-income working families, tax credits have been an important part in helping to shoulder the burden of the everyday costs of raising a family. "Limiting child tax credits to two children means that larger families are going to feel a triple whammy from reduced tax credits, the freezing of working-age benefits for a further four years and the lowering of the benefit cap.” Mrs O'Brien also said that the budget failed to recognise that lots of disabled people are trying to find employment following the announcement that 'Employment Support Allowance' for disabled people is to be cut. She said: "This move fails to recognise that many disabled people are on an active journey towards the workplace. Specific financial assistance and tailored support is extremely important in helping them into work, to provide for themselves and to build a sense of dignity and independence. "In a labour market which has not proved the most accommodating, targeting this group will sadly only leave them further isolated and at risk of poverty."