Housing charities say parts of London will become unaffordable for those on low incomes MPs are to debate controversial plans to cap housing benefit payments amid suggestions the changes will force thousands of people out of their homes.
Ministers are proposing a £400-a-week limit for the largest homes or £250-a-week for one-bedroom flats as a curb on an “out of control” benefits bill.
Housing charities and some coalition MPs have said this will make many areas unaffordable to those on low incomes.
Labour, which called for the debate, wants ministers to rethink the move.
It says the weekly caps, allied to other changes which will see a 10% cut in benefit from 2013 for those on jobseeker’s alliance for more than a year, are economically unfair and socially divisive.
The rising benefits bill has been caused by spiralling rent, the opposition says, and the bulk of those affected will be people in work but on low incomes.
It hopes to expose unease among Lib Dem and Conservative MPs, particularly those representing London seats, over the issue by forcing a vote on the plans.
Prime Minister David Cameron has insisted the government will be pressing ahead with the cap plan – due to be introduced in April – saying people would still be able to claim up to £21,000 in annual benefits.
This is despite concerns raised by public figures, ranging from Mayor of London Boris Johnson to the Archbishop of Canterbury, about the impact on those living in city centres.
Housing charities say the combination of benefit caps and rising rents mean most two-bedroom flats in central London and across the south of England will become unaffordable for claimants within 15 years.
They argue this will force people to move out of their current homes, changing the make-up of inner cities and creating new pockets of poverty and inequality.
But officials maintain nearly two-thirds of housing benefit tenants will be no worse off or will face a gap of £10, or less, a week between their rent and their benefits.
The housing benefit bill has doubled to £20bn in the past 10 years and the government, which estimates its proposals will save £2bn a year, says it is not right for claimants to be able to live in properties that people on average incomes could not afford.
While acknowledging some people may have to move as a result, ministers say there will be plenty of affordable properties in their areas and funding has been set aside to support those who find themselves in difficulty including £10m in London this year.
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