Friday, 28 August 2009

Government cutting poorest families budgets by £780 says Sarah Teather

Some families will lose 20% of their income under the new governmental scheme

The Government is set to cut up to 20% of the income of some of the country’s poorest people in April, consultation documents highlighted by the Liberal Democrats have revealed.

Government plans to alter the Local Housing Allowance could leave low-income families £780 worse off. At the moment, families receiving Local Housing Allowance (LHA) are able to keep up to £15 a week if they choose a home with a rent below the Local Housing Allowance maximum for their area. Ministers now propose removing this £15 a week payment with immediate effect in April.

Commenting, Liberal Democrat Shadow Housing Minister, Sarah Teather said:

“£15 a week may be small change to ministers, but for families struggling to make ends meet it is incredibly important.

“The Government has a track record in secretly raising taxes for the poorest, most vulnerable people in our society. Now they are planning to abruptly take away a vital source of their income.

“This is a scheme that probably won’t save any money, but will make an enormous difference to the families suddenly losing 20% of their income.

“Gordon Brown has once again abandoned the people who need the most help.”

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