City Hall proposed that families with children living in these areas be exempt from the housing cap and asked the government to ring-fence most of the Discretionary Housing Payments for London.
Another new Labour man, Tom Copley, pushed the mayor on what he was going to do to mitigate the effects of the housing benefit cap in London.
The Conservative-controlled council said the change was necessary because of government plans to cap housing benefit.
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The legislation, which introduces an annual cap on housing benefits, has had a stormy passage through the House of Lords.
Mr Duncan Smith cited Department for Work and Pensions research that suggests the cap on housing benefit - due to come in next year - meant a third of people in receipt of payments would look for work.
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The changes to housing benefit and the benefit cap are the most obvious examples, or the removal of child benefit from higher income families.
But housing charity Shelter said the income cap will see several families "locked out of a decent place to live".
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Now, you cannot - even if the Lib Dems allowed it - introduce a regional benefit cap, or end housing benefit for under-25s and so on - because there is not the time left.
Labour has said it is working families on low incomes which will be most affected by the benefit cap and other austerity measures such as curbs on tax credits and housing benefit.
What's nice about a cap rate is that you don't have to guess at what housing prices will do in the coming year.
The plan is for local authorities to be asked to assess the total benefit income from 2013 of all new and existing housing benefit claimants, reducing the benefit if necessary so the total remains within the cap.
Just as bankruptcies are an important part of the capitalist system and allow companies to come out the other end stronger and with a more clean cap table, so too are foreclosures important for a well-functioning housing market.
The cap will apply to the combined income from benefits including things like jobseekers allowance, housing benefit and council tax benefit.
He has not publicly called for the elimination of any government agencies (although he reportedly suggested dispensing with Housing and Urban Development at a fund-raising event), but he does want to both cut and cap federal spending, and turn expensive federal programmes such as Medicaid and food stamps into block grants administered by the states.
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