THE LONDON Borough of Newham last week approached Brighter
Futures, a social housing association in Stoke-on-Trent,
to house 500 homeless families because Government caps on housing benefit now
make it impossible to house the families within the east London
borough.
Private rents in the
Labour-controlled borough have soared over the last few years, exacerbated by
the impending Olympics to be held mainly in Newham.
The Government has
responded by accusing Newham Council of frightening vulnerable residents.
And Brighter Futures
has rejected Newham’s proposal on the grounds that moving large numbers of
families around the country would cause serious problems in providing vital
social, health education and other services to support them.
Newham Council is
being accused of social cleansing but shadow housing minister Jack Dromey has
told LBC, a London
local radio service, that the authority has no choice.
He said: “If the
council in London is faced with a
collapse in affordable house building, soaring rents in the private rental
sector and the benefit changes that the Government has introduced, you put
councils like Newham – which is a good council – in an impossible situation.
“It’s Grant Shapps
and the government who are responsible for this absolute scandal.
“We warned that it
would happen and it’s now happening on a grand scale.
“These are decent
families who are homeless through no fault of their own, who are desperate to
find accommodation in London, but
they are forced to move hundreds of miles.”
Tory-controlled Westminster
council is also understood to be considering a similar proposal.
As part of its
welfare reforms, the Government has introduced weekly caps on housing benefit
of between £250 for a one-bedroom flat and £400 for a four-bedroom property.
Local Housing
Allowance, which is used to determine housing benefit payments, has also been
changed so it is being calculated on the basis of cheaper rents – rather than
on the mid-point of rents in an area.
The cap on housing
benefit has drastically reduced the number of private sector rental properties
that are now affordable to the low paid and those on benefits.
According to the
Chartered Institute of Housing research, in a report issued in January this
year, the top five areas of affordable property loss are:
1. Westminster
20,700
2. Birmingham
14,200
3. Kensington
and Chelsea 14,100
4. Glasgow
City 10,120
5. Camden
10,000
Total: England,
Scotland, Wales
800,000
Newham Council is
offering to pay Brighter Futures 90 per cent of the local housing allowance
plus £60 per week.
But Brighter Futures
chief executive officer Gill Brown says she will not agree to the request:
"I think there is a real issue of social cleansing going on.
"We are very
anxious about this letter which we believe signals the start of a movement
which could see thousands of needy people dumped in Stoke with no proper plan
for their support or their welfare."
She said previous
efforts to relocate needy people had put strain on local public services and
led to "the collapse of already vulnerable neighbourhoods and the rise of
divisive right-wing extremism".
Newham's mayor, Sir
Robin Wales, blamed Government policies which had left his borough
"chasing around the country trying to find ways to deal with people who
are in need".
He told BBC
Radio 4's Today programme: "We have got a waiting list of 32,000 – we've
got hundreds of people looking for places to stay and the result of Government
benefit cuts, which are still working through as well, means that many more
people from wealthier parts of London are looking for places to live in London
and they're just not there.
"We have written
to 1,179 organisations [housing associations] saying could you accommodate some
people? We're not looking to push people all to one place; we're looking to
find the best possible solution for citizens."
Meanwhile, Westminster
is said to be considering an offer from Smart Housing Group - a private
association with homes in Nottingham and Derby
– in conjunction with its partner councils Chelsea and Hammersmith, and Fulham.
It has suggested it
could provide properties for Westminster
residents deemed "homeless" as a result of the cap – and if accepted,
each of the three London councils
would send 50 families.
If the Government
really wanted to cut the housing benefit bill it would cap rents, not benefits.
The benefits end up in the pockets of greedy landlords, who are the true social
parasites