News from Southampton Labour

123,000 households in South East lose £624 from ConDem “emergency budget”

Itchen MP John Denham has reacted to the stark findings of research by the TUC into the effects of June’s “emergency budget”.

The TUC’s analysis of figures from the Department of Work and Pensions reveal that across the South East 123,000 households will lose £12 per week, or £624 over the course of a year, due to cuts in local housing allowance which will hit almost everyone in private rented housing who receive the benefit.

Mr Denham said: “Yet again we’re shown that regardless of what David Cameron says about ‘all being in this together’ it’s the poorest who are suffering the most from this new government.”

The proposed cuts, due to come into force in April 2011, include:

* the restriction of the bedroom entitlement to four bedroom rates;
* capping the amount that can be claimed under local housing allowance (LHA) at between £250 and £400 a week (depending on property size); and
* removing a £15 a week excess payment for tenants who find a good deal on rents.

From October 2011, LHA rents will also be calculated on the 30th percentile of private sector rents rather than the median.

Other news from Southampton Labour

• Water bills hiked as Southampton Council and Southern Water waste public money - 2 February 2012
• Southampton Labour MPs urge constituents to claim free heating and insulation help - 1 February 2012
• Welfare changes hit poorest areas in Southampton hardest - 1 February 2012