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No change to housing benefit plan - Cameron No change to housing benefit plan - Cameron
(40 minutes later)
David Cameron has insisted the government is sticking to planned housing benefit cuts after Labour claimed the policy was in disarray.David Cameron has insisted the government is sticking to planned housing benefit cuts after Labour claimed the policy was in disarray.
The PM said: "These are difficult changes but I think it is right."The PM said: "These are difficult changes but I think it is right."
Labour leader Ed Miliband said the policy was "a complete shambles" after reports welfare secretary Ian Duncan Smith was rethinking it. Labour leader Ed Miliband said the policy was "a complete shambles" after reports welfare secretary Iain Duncan Smith was rethinking it.
Some Lib Dem and Tory MPs are calling for the planned cap on housing benefit, of £400 a week, to be dropped.Some Lib Dem and Tory MPs are calling for the planned cap on housing benefit, of £400 a week, to be dropped.
But Mr Cameron, speaking at prime minister's questions in the Commons, said it was not fair for working people to see their taxes used to fund homes "they couldn't even dream of".But Mr Cameron, speaking at prime minister's questions in the Commons, said it was not fair for working people to see their taxes used to fund homes "they couldn't even dream of".
'Out of touch''Out of touch'
And he stressed that the government was "going forward with all the proposals we put in the spending review and in the budget". And he stressed that the government was "going forward with all the proposals we put in the Spending Review and in the budget".
Mr Miliband accused Mr Cameron of being "out of touch" and warned thousands of people would be forced out of their homes as a result of the changes. Mr Miliband accused Mr Cameron of being "out of touch" and warned that thousands of people would be forced out of their homes as a result of the changes.
He told the prime minister: "You are about to make 500,000 people redundant. Your policy on housing benefit is a complete shambles. In London councils are saying 82,000 people will lose their homes. How many people do you think will lose their homes as a result of this policy?"He told the prime minister: "You are about to make 500,000 people redundant. Your policy on housing benefit is a complete shambles. In London councils are saying 82,000 people will lose their homes. How many people do you think will lose their homes as a result of this policy?"
The coalition has announced plans that would limit housing benefit at around £400 a week for a four-bedroom home, and cut payouts by 10% when people have been on jobseeker's allowance for more than a year.The coalition has announced plans that would limit housing benefit at around £400 a week for a four-bedroom home, and cut payouts by 10% when people have been on jobseeker's allowance for more than a year.
Mr Cameron said: "The point everyone in this House has got to consider: are we happy to go on paying housing benefit of £30,000, £40,000, £50,000?Mr Cameron said: "The point everyone in this House has got to consider: are we happy to go on paying housing benefit of £30,000, £40,000, £50,000?
"Our constituents working hard to give benefits so people can live in homes they couldn't even dream of? I don't think that's fair.""Our constituents working hard to give benefits so people can live in homes they couldn't even dream of? I don't think that's fair."
The Department of Communities and Local Government is to grant £10m from its homelessness budget to local councils' funds, to ease the consequences of the change.The Department of Communities and Local Government is to grant £10m from its homelessness budget to local councils' funds, to ease the consequences of the change.
The money will go to councils' "discretionary funds" - a pot of money they can use for special cases. It is not expected to be aimed at London alone, the BBC understands.The money will go to councils' "discretionary funds" - a pot of money they can use for special cases. It is not expected to be aimed at London alone, the BBC understands.
For example, if a family's rent was more than £400 but one of their children attended a local special school, the council could - at their discretion - allow the family to stay in that accommodation and keep paying a higher rate.For example, if a family's rent was more than £400 but one of their children attended a local special school, the council could - at their discretion - allow the family to stay in that accommodation and keep paying a higher rate.
But ministers accept that many thousands of people will have to move house if the changes go ahead.But ministers accept that many thousands of people will have to move house if the changes go ahead.
Chancellor George Osborne had already allocated £60m in his June budget, a tripling of the cash for "discretionary funds" to help the changes.Chancellor George Osborne had already allocated £60m in his June budget, a tripling of the cash for "discretionary funds" to help the changes.
Government figures suggest 32% of housing benefit claimants are not on out-of-work benefits - about 680,000 people. This is a greater than the number of claimants who are on Jobseeker's Allowance, which is about 650,000. According to government figures, 21,000 people will be affected by the caps to housing benefit across the UK including 17,000 in London, the majority of whom are out of work.
'Hardship and distress''Hardship and distress'
Lib Dem backbenchers have threatened to join forces with Labour in a bid to block the changes in Parliament.Lib Dem backbenchers have threatened to join forces with Labour in a bid to block the changes in Parliament.
Torbay MP Adrian Sanders said he was seeking a meeting with Mr Duncan Smith and was confident of gaining concessions from the work and pensions secretary. Shadow work and pensions secretary Douglas Alexander urged them to rebel against the government, saying: "Ed Miliband told David Cameron it was time to listen - now I'm telling Lib Dem MPs it's time to talk and work together to force the government to think again."
One potential rebel, Torbay MP Adrian Sanders, said he was seeking a meeting with Iain Duncan Smith and was confident of gaining concessions from the work and pensions secretary.
He said the changes were not just unfair on those living in cities, as London MPs have claimed, but also on people like his constituents who were in receipt of Local Housing Allowance, a benefit based on average rents in the local area which is facing the axe as part of the planned changes.He said the changes were not just unfair on those living in cities, as London MPs have claimed, but also on people like his constituents who were in receipt of Local Housing Allowance, a benefit based on average rents in the local area which is facing the axe as part of the planned changes.
"The whole thing is completely and utterly unrealistic and it is going to cause hardship and distress," Mr Sanders told the BBC News website."The whole thing is completely and utterly unrealistic and it is going to cause hardship and distress," Mr Sanders told the BBC News website.
Sources told the BBC Mr Duncan Smith was listening to MPs, especially those in and around London who had raised issues, and had already met the capital's mayor Boris Johnson.Sources told the BBC Mr Duncan Smith was listening to MPs, especially those in and around London who had raised issues, and had already met the capital's mayor Boris Johnson.
Last week's Spending Review also included a cut of 50% on the amount spent on new social housing - but the government hopes to make up the shortfall by allowing housing associations to charge close to the full market rate for rent.Last week's Spending Review also included a cut of 50% on the amount spent on new social housing - but the government hopes to make up the shortfall by allowing housing associations to charge close to the full market rate for rent.
'On the hoof''On the hoof'
Lib Dem housing minister Andrew Stunnell said the coalition would deliver 150,000 new social homes by the end of its five-year term.Lib Dem housing minister Andrew Stunnell said the coalition would deliver 150,000 new social homes by the end of its five-year term.
"Our housing programme will deliver more social housing in the next five years than Labour did in their 13 years," he told MPs in a Westminster Hall debate."Our housing programme will deliver more social housing in the next five years than Labour did in their 13 years," he told MPs in a Westminster Hall debate.
But former Labour Minister for London, Nick Raynsford, claimed the policy was being made up "on the hoof" and said setting social rents at 80% of the market level would destroy mobility. But former Labour Minister for London Nick Raynsford claimed the policy was being made up "on the hoof" and said the coalition's plans to allow housing associations to charge 80% of the market level for rent would destroy mobility.
"Existing tenants who would have thought above moving to a smaller home will not want to if they realise it will lead to a loss of security and a rent increase," he said. "Existing tenants who would have thought about moving to a smaller home will not want to if they realise it will lead to a loss of security and a rent increase," he said.
Conservative MP Mark Field, whose Cities of London and Westminster constituency includes some of the country's most expensive properties, said the policy would free up larger family accommodation.Conservative MP Mark Field, whose Cities of London and Westminster constituency includes some of the country's most expensive properties, said the policy would free up larger family accommodation.
Young middle class people had become excluded from city centres which had now become the home to either the super rich or the very poor, he said, adding: "That is not a healthy state of affairs." Young middle-class people had become excluded from city centres which had now become the home to either the super-rich or the very poor, he said, adding: "That is not a healthy state of affairs."