Sixty people in Merton may lose out on housing benefit after budget cuts came into force this month, campaigners have claimed.

Young people aged between 18 and 21 who are unemployed are no longer automatically entitled to claim housing benefit under changes in Universal Credit rules that came in on April 1.

Research by the House of Commons library and commissioned by the Liberal Democrats shows that there are 20 people in Wimbledon and 40 in Mitcham and Morden are on housing benefit. There are about 18,000 young people on housing benefit across the UK. 

In the 2015 budget report, the government estimated that the young person’s housing benefit cuts would save £35m a year from 2017, but recent research by Heriot-Watt University found that once exemptions were included, the policy would save just £3.3m.

Parents whose children live with them, and vulnerable groups are excluded from this, as are claimants who have been in continuous work for the last six months.

Researchers also found that the policy would make 140 young people would be made homeless, with knock-on costs meaning the policy would cost taxpayers more money overall.

Charities have warned that stripping 18 to 21-year-olds of housing benefits could push more young people onto the streets.

Merton’s Liberal Democrat parliamentary candidates have been reaffirming the party’s commitment to reverse the cuts.

Wimbledon candidate Carl Quilliam said: “The heartless decision to strip under-21s of housing benefit risks pushing young people in Wimbledon onto the streets.

“Vulnerable youngsters with nowhere else to turn are being abandoned by this Conservative government. This nasty and counterproductive policy should be overturned immediately.

“Younger generations have the most to lose from the increasingly divisive policies and hard Brexit agenda being pursued by this Conservative government."

Mitcham and Morden candidate Claire Mathys said: “This election is a chance to change the direction of our country. The Liberal Democrats will restore housing benefit for 18-21 year olds and prevent a destructive hard Brexit robbing young people of their futures."