
During last week's Welfare Reform Bill, I raised the issue of constituents who are obliged to rent properties that entitle them to higher housing benefit, pushing them over the government's cap. The Minister responded that he was "not aware" that Housing Benefit was paid to families earning £35,000 a year.
His ignorance is matched by that of the Prime Minister, who on 11 January told me that rents were falling in London.
A benefits cap of £26,000 means that is the total income of a family out of work. But a couple in work with a take home pay of £26,000 (£35,000 gross) and three children could be receiving £130 a week (nearly £7,000 a year) in housing benefit plus child benefit and some tax credits. A family with two children would receive £97 a week (over £5,000 a year).
It is entirely misleading therefore to equate a benefits cap of £26,000 with annual net earnings of £26,000. Families in work are entitled to many additional benefits. Thousands of families in London will be forced to leave their homes under the government's new arrangements and will find nowhere else at lower rents.
I have written to the Minister demanding he apologise for his statement and acknowledge that his policy will result in hard-working families being made homeless in London.