130,000 families in North West to lose £10 a week in housing benefit

Date published: 05 August 2010

130,000 households in the North West will lose on average £10 a week (£520 a year) as a result of changes to housing benefit announced in June’s Emergency Budget.

Cuts to the local housing allowance will hit almost everyone in private rented housing who is on the benefit, says the North West TUC.

The analysis of figures from the Department for Work and Pensions (DWP) reveals the top 10 worst hit areas in the North West are: Liverpool, Blackpool, Manchester, Wirral, Sefton, Bolton, Wigan, Rochdale, Cheshire W & Chester and Cheshire East.

Worst hit of these are almost 4,000 families in Cheshire West and Chester who face losing up to £12.60 a week.

But the biggest number of families to lose out are in Liverpool where 12,620 families will be £10.60 a week worse off as a result of the benefit changes.

North West TUC Regional Secretary Alan Manning said: “These cuts in housing benefit will hit some of our poorest and most vulnerable families, and will affect more than 130,000 households across our Region.

“On average, 130,000 families in the North West will find themselves out of pocket to the tune of £520 a year or £10 a week – but some of the poorest people in Liverpool, Blackpool, Wirral and parts of Cheshire will be hit even harder.

“The cuts have been buried in the small print of the Budget and are extremely complicated - but it is crystal clear that some of the North West’s poorest families are now paying the price for the bankers recession, while the banks themselves are returning massive profits.”

The proposed cuts, due to come into force in April 2011, include:

• the restriction of the bedroom entitlement to four bedroom rates
• capping the amount that can be claimed under local housing allowance (LHA) at between £250 and £400 a week (depending on property size)
• removing a £15 a week excess payment for tenants who find a good deal on rents

From October 2011, LHA rents will also be calculated on the 30th percentile of private sector rents rather than the median.