London families are hit hardest by benefit cuts

 
Welfare cuts: Chancellor George Osborne giving a speech in Birmingham
Chancellor George Osborne gives a speech on the economy during his visit to manufacturing company Sertec, Coleshill in Birmingham. PRESS ASSOCIATION Photo. Picture date: Monday January 6, 2014. The Chancellor has set out plans to cut a further £25 billion
10 January 2014
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Nearly half of the households that have lost benefits under the Government’s £26,000-a-year cap are in London, official figures reveal today.

They show that the welfare crackdown is hitting the capital disproportionately hard and the figures sparked fresh calls for the cap to be raised in London or lowered in other parts of the country to ensure welfare reforms are applied fairly.

Just under 33,000 households had their benefits capped between April and November last year, including 15,342 in London and a further 3,431 in other parts of the South-East.

In Enfield, 1,548 households were affected — almost double the 815 hit in the entire North-East, and more than the 965 in Wales, 1,198 in Scotland and 1,278 in the East Midlands.

Westminster North Labour MP Karen Buck said: “What these figures are reflecting is the grim reality of high rents in London and the cost of housing homeless households.

“We need to look at regional variations in costs, particularly for housing, in order to have a fair welfare system that works for all parts of the country.”

But Enfield North Conservative MP Nick de Bois said: “The benefits cap and wider welfare reforms are working as we see unemployment levels now lower in Enfield than they were before the general election.”

Eighteen out of the 20 local authority areas most affected are in London, including Brent, with 1,228 households, Ealing, 918; Westminster, 895 and Haringey, 866.

Labour MPs have said the welfare changes have led to an exodus of thousands of poorer families from central London to outer boroughs, a claim denied by ministers.

The figures also showed hundreds of families were getting benefit payments equivalent to a salary of more than £60,000. Two out of five households affected had five or more children.

A staggering £1.5 million a month has been saved by capping the 1,330 households with the highest benefits bills.

Welfare reform minister Lord Freud said: “These figures show that the benefit cap is returning fairness to the system by ensuring that families on benefits can no longer get more money than the average family earns.”

A Department for Work and Pensions spokeswoman said: “We have given £56 million to councils in London to help vulnerable residents affected by welfare reforms and even after these changes housing benefit can meet rents of up to £21,000 a year.”

George Osborne has signalled that he wants to axe a further £12 billion from the welfare bill to help restore public finances. The Chancellor and David Cameron are reportedly at odds over the PM moving against axing perks for wealthier pensioners such as the winter fuel allowance, free bus passes and TV licences.

Dorries to vote against Osborne

Maverick Tory MP Nadine Dorries is vowing to vote against axing housing benefit for under-25s.

Appearing on BBC Question Time, she said: “I certainly won’t be going into a voting lobby to vote to remove housing benefits from the under-25-year-olds.”

Chancellor George Osborne has floated such a new restriction as part of £12 billion more of welfare cuts but it was previously blocked by the Liberal Democrats in coalition talks.

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