Charity warns benefits cutbacks will lead to a jump in homelessness (From Basildon Recorder)

Charity warns benefits cutbacks will lead to a jump in homelessness

7:00am Thursday 19th August 2010 in Echo News

A CHARITY has warned of an explosion of homelessness in south Essex after new figures revealed thousands of tenants will be affected by cuts to housing benefit.

Across the region 94 per cent of the 13,000 households renting privately and claiming housing benefit will be affected by Government plans to slash the amount paid out by £1.8billion.

This could see the 180 families living in four bedroom properties in Basildon, Castle Point and Thurrock lose out on about £100 a month.

Families in the same situation in Southend and Rochford will have to find another £80 a month to pay the rent.

The figures were compiled by the Department for Work and Pensions as part of an impact assessment of the emergency budget announced by the coalition Government in June.

Leslie Morphy, chief executive of homeless charity Crisis, branded the cuts counter-productive.

She said: “As vulnerable private tenants see their income slashed, they will inevitably fall into rent arrears or debt and face the spectre of homelessness.

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

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

The cuts are due to come into force next year.

Currently, the maximum housing benefit paid out is based on the midpoint between the lowest and highest market rents in an area.

So if a resident lives in an area where rents range from £50 a week to £250 a week, a claimant would be entitled to up to £150.

However, from October next year, the midpoint figure will be reduced, so a resident living in the same area would be able to claim closer to £100.

In addition, different sized households are entitled to claim different amounts.

But from April next year families will only be able to claim the amount for a four-bedroom property, however many children they have.

Peter Reed, service operations manager for homeless charity Harp, said they were ready to deal with the impact.

He said: “With what is going on, there was bound to be some money that would be cut by the Government and we may even face cutbacks ourselves.

“We cannot be negative about these things and we will deal with the increase if and when it happens.

“We have a very positive attitude to helping people get integrated back into the community. We are not just about taking in homeless people. We do what we can to see why they became homeless in the first place and try to resolve their issues.”