As many as 3,000 of Merton’s poorest residents could be made worse off as a result of the Government’s proposals to shake up housing benefit policy, prompting fears they could be plunged below the poverty line.

Two separate surveys – one from an MP and one from Merton Council – concluded between 2,500 and 3,000 housing benefit claimants will be badly affected by the coalition’s Government’s decision to scale down the standard against which benefit is measured.

Housing benefit payouts for an area are calculated against the median – 50 per cent level – of rents set by private landlords but, from November, this yardstick will be scaled down to the 30 per cent level of all rents.

The amount of money residents will lose ranges from between £5 a week to nearly £400 a week, depending on the size of property they own and where they live in the borough.

Council: "These changes are wrong"

Councillor Mark Allison, Merton Council cabinet member for finance, said the system needed changing, but the Government’s proposals would force hard-working families into poverty with no chance of moving to a cheaper home.

Coun Allison said: “That will make them dependent on housing benefits and result in huge sums of public money going straight into the pockets of private landlords, rather than being used to build new homes.

“The current system costs too much and needs changing.

"But these changes are wrong, and will trap many of our community’s most vulnerable families in exorbitantly expensive homes paid for by taxpayers, all of which will have a big impact on council services in the future.”

The council estimates 2,500 people will receive up to £20 a week less – or £1,040 a year – when the changes take effect, but a separate survey said the figure is more likely to be nearly 2,940 claimants receiving less benefits, by an average of £16 a week – £832 a year.

According to the data released by Karen Buck, Labour MP for Westminster North, 180 pensioners would be included in the figure of 2,940.

But Councillor Samantha George, Merton Conservatives’ housing spokeswoman, said residents and landlords would have enough time to adjust to the changes, which were necessary to help reduce the country’s welfare bill.

Coun George said: “There is quite a lot of time for people to adjust to this, and the impact will be mitigated by the fact the benefit will be paid directly to landlords.

“The majority of people will get between £5 and £15 less a week.

“If you are a landlord, what would you rather? Getting a guaranteed rent from the council, albeit slightly reduced, will still be very attractive for many landlords.”

Landlords to be given seminar about changes

Merton Council will be holding a free information seminar for landlords on Monday, February 28.

Speakers from Merton’s housing benefit section, the housing needs team, the National Landlords Association and the Valuation Office Agency (VOA) will be given insight into how Local Housing Allowance rates will be calculated differently.

The seminar will take place at the The Hub at Tooting and Mitcham Football Club, Bishopsford Road, from 6pm-8.30pm.

Places are limited so you will need to book your place by 21st February 2011. You can book online at www.merton.gov.uk/benefits.

Are you worried about the proposed changes to housing benefit? Do you agree that it should be cut?

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