Critics of Housing Benefit Cuts Are Scaremongering, Claims Minister

Welfare reform minister Lord Freud says the government is not expecting a significant increase in homelessness, and says critics of the policy are stirring up people's fears. A recent survey for London Councils – the umbrella group for the capital's local authorities – found 60% of private landlords would evict tenants rather than slash rents, with estimates suggesting as many as 82,000 households could lose their homes. But Lord Freud, the minister for welfare reform, today dismissed the findings, suggesting that landlords were using the survey to "send a message" in the hope of prompting the government to soften its stance. Pressed on the possible fallout, he conceded that were there to be a rise, as predicted by housing charities and town halls, the government may have to review its position. He told the Commons work and pensions select committee, which is looking into the housing benefit changes outlined in June's emergency budget, that the current definitions of homelessness allowed "extravagant claims" to be aired. He insisted: "We are not expecting any significant increase in homelessness as a result of these changes ... We are expecting a large number of people who see less housing benefit to be able to negotiate their rents downwards." Read more on The Guardian website.