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Housing benefit cap 'may change' Downing Street denies housing benefit climbdown
(about 4 hours later)
The government may have to amend its plans for a cap on housing benefit payouts, the BBC has learned. Downing Street has denied the government is set to revise its plans to cap housing benefit payments.
It comes after reports Work and Pensions Secretary Iain Duncan Smith was ready to rethink the policy after pressure from MPs.
The proposed cap could force people out of cities where rent is higher, some MPs and charities have argued.The proposed cap could force people out of cities where rent is higher, some MPs and charities have argued.
But Deputy Prime Minister Nick Clegg said people living in areas that many working families could not afford should not expect to be subsidised. A Downing Street spokeswoman said: "We are absolutely committed to the changes we announced."
A Whitehall source said the Work and Pensions Secretary, Iain Duncan Smith, was listening to MPs' concerns. Asked if there was any flexibility on limiting payments to £400 on a four-bedroomed rented house, she said: "No, we are not planning to concede on that."
The coalition's plans include capping housing benefit at around £400-a-week for a four-bedroom home, and cutting the benefit for anyone on jobseeker's allowance for more than a year by 10%. 'Hardship and distress'
The source told the BBC that Mr Duncan Smith was listening to Conservative MPs, especially those in and around London, who had raised issues, and had already met the capital's mayor Boris Johnson. She said the government would listen to concerns raised by MPs but was committed to the policy.
Lib Dem backbencher Tim Farron indicated to the BBC that MPs plan to force a Commons vote on the issue, following reports that the government was planning to make the changes without primary legislation.
Some Lib Dem and Conservative MPs are understood to be seeking meetings with Mr Duncan Smith to discuss their concerns.
One of the Lib Dem rebels, Torbay MP Adrian Sanders, said he was confident of gaining concessions from the work and pensions department.
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 reforms would result in people being evicted because they were not able to pay their rent, which would lead to them claiming housing benefit at a higher rate.
"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 planned reforms would also remove the "safety net" for single people aged under 35 who were sufferering from mental illness, added Mr Sanders, as it would force them to give up their flats and houses for shared accomodation.
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.
'Draconian''Draconian'
BBC political correspondent Vicki Young said the source added that amendments might need to be made as the proposals pass through Parliament. Liberal Democrat deputy leader Simon Hughes has held talks with his party leader, Nick Clegg, over the plans.
Liberal Democrat deputy leader Simon Hughes has held talks with his party leader, Mr Clegg, over the plans. Mr Hughes has described them as "draconian" and vowed to try to block them in Parliament.
Mr Hughes has described them as "draconian" and vowed to try and block them in Parliament.
In the Commons, Mr Clegg denied that large cities would be "cleansed" of poor people following cuts to housing benefits.In the Commons, Mr Clegg denied that large cities would be "cleansed" of poor people following cuts to housing benefits.
He said the suggestion, made by Labour's Chris Bryant, was "deeply offensive to people who have witnessed ethnic cleansing".He said the suggestion, made by Labour's Chris Bryant, was "deeply offensive to people who have witnessed ethnic cleansing".
Other critics of the plans to cap benefits say they would penalise the long-term unemployed genuinely seeking work.Other critics of the plans to cap benefits say they would penalise the long-term unemployed genuinely seeking work.
The changes were announced in the government's Spending Review earlier this month. The changes were announced in the government's Spending Review last week.
It also said spending on new social housing would be cut in by 50% - but hoped to make up the shortfall by allowing housing associations to charge close to the full market rate for rent. It also said spending on new social housing would be cut by 50% - but hoped to make up the shortfall by allowing housing associations to charge close to the full market rate for rent.