Government figures revealed by the Labour Party have shown that over two thousand households in the borough will see their household income drop when the Conservative led Government’s benefits cap comes into force in September.
The cap will disproportionately Londoners as it fails to take the high cost of housing into account. As a result the cap will mean those struggling on low wages as well as those out of work may be affected. The figures released by Labour reference the number of households in the borough which have received a letter from the Government warning them that they may be affected when the cap comes into force.
Hitting out at the Government the councillors labelled David Cameron and George Osborne’s policies as “destructive cuts on the most vulnerable in our community”. They also drew a comparison with the Government’s plans to give a tax cut to millionaires which on average will be worth £100,000 to each person.
Labour’s Spokesperson for Adult Health and Wellbeing, Cllr Rachael Saunders, said:
“The Government is intent on forcing these destructive cuts on the most vulnerable in our community. It is not right that 2,200 families will be penalised for the high cost of housing in London at the same time David Cameron is giving a tax cut to millionaires. So much for all in it together.”
“Labour’s plan for jobs and growth would prioritise getting people into decent work, rather than writing them off as the Government seems intent on doing.”
Labour MP for Bethnal Green and Bow, Rushanara Ali, said:
“The benefit cap may actually end up costing more than it saves as local authorities will be forced to cope with increased homelessness. The best way to bring down the welfare bill is to create jobs and ensure that families are better off in work than on benefits. But the Government’s cuts to tax credits mean this isn’t a reality for many families with high housing costs.”