Thousands of people across Shropshire and the West Midlands could face debt and homelessness if the Government goes ahead with planned cuts, a charity warned today.

The Government announced cuts of £1.8 billion to housing benefit in its emergency budget and, on average, this will mean that claimants in the region will lose out to the tune of £10 a week or £520 per year.

According to an impact assessment by the Department of Work and Pensions, each of the 80,140 households in the region reliant on Local Housing Allowance – the form of housing benefit paid to tenants in the private rented sector – will be affected.

Figures show that 3,340 people in Telford & Wrekin could lose out, as well as a further 2,880 in the Shropshire Council area.

Reduction

For example in Telford & Wrekin 1,160 are shown to be living in one-bed accommodation and they could see their LHA cut by £8 a week.

But the figure rises to £11 a week for the 560 in three-bed properties.

And in Shropshire there are 1,600 living in one-bed accommodation and they could lose £9 a week. For the 320 in three-bed homes the reduction could be £12.

Crisis, the national charity for single homeless people, claims the cuts will leave tenants in rent arrears and increasing debt and being forced leave their homes.

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 thousands of those who are 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 now.

“Not only would a surge in homelessness cause damage for generations to come in the West Midlands, it is also counter-productive.

“The costs to society of somebody who has lost their home are huge compared to keeping someone in accommodation.”

By Dave Morris