Housing minister Grant Shapps has dismissed claims made in a leaked letter that 40,000 people could be made homeless as a result of government welfare reforms. Speaking at a Local Government Information Unit reception in parliament, Shapps told the Guardian Housing Network that statements made in the leaked memo were "not true" and the figure was based on an internal memo which "speculated on what might happen if the cap was introduced at a certain level". The minister said the note had been written "months ago" and was out of date, claiming families would not be made homeless because the government will now achieve its target for building affordable homes. The letter, written by Eric Pickles' private secretary to an aide in Downing Street, warned the prime minister that as many as 40,000 people could be made homeless due to the cap on housing benefit.
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