Hull families set to lose out in Local Housing Allowance cuts

Hull North MP Diana Johnson today warned of the impact of changes to the Local Housing Allowance on people living in Hull.

The Labour MP's warning comes on the day that the House of Commons will vote on proposals from the Coalition Government that would change the way the Local Housing Allowance is calculated.

The changes planned by the Government would mean that 700,000 people in Britain could lose out by an average of £9 a week according to official figures from the Department of Work and Pensions (DWP), with losses in every local authority in Britain from October 2011.

As a result of this measure around 90% of Local Housing Allowance recipients in Hull will lose out.

Diana Johnson MP said: "Hull families on modest incomes will be concerned that from next year they could suddenly lose an average of around £10 a week because of cuts to the support they get with housing costs.

"These changes will mean work will not pay for many, drive others further into debt and increase the threat of homelessness.

"I am in favour of reforming housing welfare benefits to save tax-payers money, but penalising low-paid tenants and genuine job-seekers, instead of creating more affordable rented housing, is not the way to achieve this. I hope that the Government will think again."

Douglas Alexander MP, Shadow Secretary of State for Work and Pensions, said: "The Government's plans mean that 700,000 of the country's poorest people, including 90% of Yorkshire and Humber recipients of the Local Housing Allowance will be on average £9 a week worse off, with no time for individuals or landlords to adjust.

"This is a big drop in income for people struggling to make ends meet.

"The Government just doesn't seem to understand that higher homelessness, like longer dole queues, makes it harder not easier to deal with the deficit."

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