Will Newcastle East's MP oppose plans to cut housing benefit for the least well off? (Greg Stone)

Will Newcastle East's MP oppose plans to cut housing benefit for the least well off?

November 13, 2009 1:48 PM

Lib Dem parliamentary spokesman Greg Stone has welcomed the support of a Newcastle Labour MP for a Lib Dem tabled Parliamentary motion EDM 2069 which seeks to scrap controversial changes to housing benefit payments which if agreed could see the least well off citizens in Newcastle East lose £15 per week or £780 per year thanks to the Labour Government. The move is attracting strong opposition from housing rights groups.

The motion reads:

That this House strongly opposes the Government's plans to scrap excess payments to local housing allowance claimants where their rent is lower than the rate of the allowance; expresses alarm that this plan would see some of the poorest families in the country up to £780 a year worse off; believes that the withdrawal of excess payments would not result in savings for the Government because tenants would have no incentive to choose cheaper properties and landlords would simply raise their rent to the maximum amount of the allowance, thus transferring £15 a week from poorer families to private landlords; notes that these changes undermine the original objectives of local housing allowance which were to bring choice and fairness to the benefits system while combating poverty; and therefore calls on the Government to abandon its plan to scrap excess payments to local housing allowance claimants.

Greg Stone said "Following the disastrous 10p tax band fiasco where Labour raised taxes for the poorest to pay for tax cuts for the better off, Gordon Brown is set to do it again by taking money out of the pockets of the very poorest in society. This cut could mean them losing a significant percentage of their weekly or monthly income.

"I am grateful that Newcastle Central Labour MP Jim Cousins has indicated his formal support for this Lib Dem motion but am disappointed that the Labour government intends to press ahead regardless, and am disappointed that the Labour MP for Newcastle East is silent on an issue which is a betrayal of Labour's professed commitment to social justice."