Activists to fight housing benefits cut

Lib-Dem activists have vowed to fight coalition plans to reduce housing benefit which could see 3,000 families across Oldham face eviction.

Under coalition plans there will be a cut in the maximum payment of local housing allowance claimed by tenants on housing benefit in private accommodation.

Instead of being capped at the “median rent” in the area concerned — around 50 per cent of the highest rent charged — it will be tagged to the lowest 30 per cent of rents, from October, 2011.

But at the Lib-Dem party conference in Liverpool, activists voted for the Government to rethink its plans.

The amendment was carried after a series of passionate speeches.

One speaker accused Chancellor George Osborne of “contemptible” attacks on benefit claimants and of planning to “run rampant like the reaper of death”.

The new rules — designed to save £1.8bn by capping maximum payments — will affect one million families, including 3,390 in Oldham.

The Government has insisted the shake-up will force greedy private landlords to cut rents, but landlords have insisted they simply cannot afford a sudden dip in income — and would be forced to evict instead.

According to the Department for Work and Pensions the changes will mean the amount people will be able to claim for a one-bedroom property in Oldham will be £80.55 (down £5.75 on current levels), £97.81 for two bedrooms (down £5.75) and £113.92 for a three-bedroom property (down £8.05) and £143.84 for four bedrooms (down £11.50).

The conference also voted to save “simple to understand, easy to claim” child benefit for all — after leader Nick Clegg appeared to signal that payments could be stripped from the better-off.

Mr Clegg said that he would be happy to give up his family’s £2,450-a-year child benefit payments, but his rank-and-file insisted the benefit should not be means-tested or taxed.