Crisis issues homeless warning after threat to benefits (From St Helens Star)

Crisis issues homeless warning after threat to benefits

4:30pm Wednesday 25th August 2010 in News By Stephen Mather

THOUSANDS in St Helens face homelessness and debt if Government plans to slash housing benefit goes ahead, warns a national charity.

Crisis, an organisation, which supports single homeless people claim that 3,720 households in the town, which are reliant on local housing allowance will be affected.

Soon after coming to power the Government announced cuts of £1.8bn to h ousing benefit in its emergency budget.

Crisis says that according to an impact assessment by the Department of Work and Pensions, nearly all of the 131,180 households in the north west are reliant on local housing allowance which is the form of benefit paid to tenants in the private rented sector.

On average, this will see claimants across the north west having their local housing allowance cut by £10 per week or £520 a year.

The charity say that cuts will leave tenants falling into rent arrears, increasing debt or being forced to leave their homes.

In St Helens, those living in one bedroomed flats will have their support cut by £780 per year. In comparison to Manchester and Salford, the cuts will be £624 and £676 respectively.

Leslie Morphy, chief executive of Crisis said: “The Government promised in cutting the deficit, it would protect the most vulnerable, but these figures show that those in greatest need will have their income hit when they can least afford it.

“As vulnerable private tenants see their income slashed, they will inevitably fall into rent arrears or debt and face the spectre of homelessness. The government must totally rethink these cuts.

“Not only would a surge in homelessness cause damage for generations to come, it is also counter-productive. The cost to society of somebody who has lost their home is huge compared to keeping someone in accommodation.”