GOVERNMENT DECISION LEAVES STOCKPORT'S POOREST FAMILIES £780 A YEAR OUT OF POCKET

11.23.00am GMT Mon 9th Nov 2009

The Government is set to cut nearly £800 from the budgets of some of Stockport's poorest people in April, according to Hazel Grove MP Andrew Stunell.

Government plans to alter the Local Housing Allowance could leave low-income families up to £780 a year worse off. At the moment, families receiving Local Housing Allowance (LHA) are able to keep up to £15 a week if they choose a home with a rent below the Local Housing Allowance'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 the people receiving LHA pay a contractual rent that is lower than the LHA maximum rate. This means that over 1,500 people in the borough will lose out as a result.

Commenting, Andrew Stunell said:

"£15 per 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 their 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 Labour during a recession, and Gordon Brown has once again abandoned the people who need the most help."

Now Mr Stunell is joining with other Liberal Democrat MPs to press the Government for a rethink.

ENDS