Government cuts to hit Leeds' families (Leeds Liberal Democrats)

Leeds Liberal Democrats <info@leedslibdems.org.uk>

Government cuts to hit Leeds' families

November 16, 2009 12:00 AM

The Government is set to cut nearly £800 from the budget of some of Leeds' poorest people in April.

Government plans to alter the Local Housing Allowance (LHA) could leave low-income families up to £780 a year worse off (according to Councillor Ralph Pryke, (Lib Dem, Burmantofts & Richmond Hill). LHA is a way of calculating Housing Benefit, based on the area you live, number of occupiers in the property and household size. It is designed for people renting in private accommodation and on low incomes

At the moment, families receiving LHA are able to keep up to £15 a week if they choose a home with a rent below the LHA's maximum for their area. Chancellor Alistair Darling now proposes removing the £15 a week payment from April next year.

Estimates indicate that around half of all people receiving LHA pay a contractual rent that is lower than the LHA maximum rate. This means that over 6,500 households in Leeds will lose out as a result.

Cllr Pryke is joining with other Liberal Democrat councillors in Leeds to press the Government for a rethink.

Commenting, Cllr Pryke said:

"£15 a week may seem like small change to government ministers, but for local families struggling to make ends meet this money is important.

"The government has a track record in secretly raising taxes for the poorest and most vulnerable people. Now they want to take away a vital source of income just like that.

"Cutting this scheme will save very little money, if any at all, but will make a huge difference to local families' budgets. This is irresponsible behaviour from the government during a recession when bankers have been allowed to get away with millions in bonuses. Gordon Brown has once again abandoned the people who need the most help."