Thousands of hard working Lambeth tenants could be forced into the benefits trap by a crippling 17 per cent increase in their rents.

A £12.01 average weekly rent increase from April - expected to be the highest social housing rent increase announced by any local authority in the UK this year - was approved by Lambeth Council at a highly charged meeting on Monday.

Tenants warned that the 40 per cent of Lambeth’s 33,000 housing tenants who do not claim benefits could now choose to join the dole queue as they are forced towards the poverty line by the rent increase.

Others called the move “political suicide”.

Jean Kerrigan, representing Lambeth Tenants’ Council, said: “We are being pushed into becoming non-workers because to be on benefits is more beneficial.

“Many people in Lambeth housing are proud to have managed to live their lives without claiming benefits. Many will now have to face the indignity of being means tested each month to see if they qualify.”

The rent hike has sparked widespread anger because it will be used to plug an estimated £13m overspend this financial year by the council’s housing department.

“It is tenants who are footing the bill for mistakes by incompetent managers,” Ms Kerrigan told the cabinet.

The increase means the average council tenant will now be paying £84 a week. However some will pay in excess of £100 thanks to further 5 per cent increases in service charges and communal heating and hot water on top of a staggering 65 per cent increase in heating charges levied on them November.

The council argue the increases are to bring rents in line with the London average, but critics say this statistic is “misleading” as the rents have always been counterbalanced by “extortionate” service charges.

Lambeth argue the increases are the only option - as the council is legally bound to balance its housing account and it does not want to cut up to £9m off its service and repairs budget.

Cabinet member for housing and regeneration Councillor Lib Peck argued years of low rents has meant massive underinvestment, and the rent increase was the only way to fund work needed to improve its properties and services.

But tenants disagreed, saying standards had gotten worse since Lambeth Living, that now manages council properties, took control of the housing stock.

Irene Kimm, Conservative Group housing spokesman, called the Labour-run council’s decision “political suicide” and said housing department mismanagement meant tenants would be hit extra hard at a time when all Lambeth residents were feeling the pinch financially.

Coun Peck added: “This is one of the most difficult decisions we have had to make as a council and we understand the difficulties it will cause tenants.”

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