Cuts to housing benefit shows Labour has learnt nothing from 10p tax shambles - Kevin Lang

6.41.54pm BST (GMT +0100) Sat 29th Aug 2009

Alex Cole-Hamilton and Kevin Lang are opposing Labour's plans to slash housing allowance for the poorest families.

Liberal Democrats have highlighted how some of the poorest people in Edinburgh North & Leith are set to lose up to 20% of their income because of Labour plans to slash housing benefit.

Government plans to alter the Local Housing Allowance could leave low-income families £780 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 maximum for their area. Ministers now propose removing this £15 a week payment with immediate effect in April.

Local Liberal Democrat candidate, Kevin Lang said,

"It is clear that Labour has learnt nothing from its disgraceful and shambolic decision to scrap the 10p tax rate, which doubled the income tax paid by many of the lowest paid.

"Now they seem determined to clobber poorer families yet again and at a time when many are struggling in the economic downturn."

The Liberal Democrats' Shadow Housing Minister, Sarah Teather said:

"£15 a week may be small change to ministers, but for families struggling to make ends meet it is incredibly important.

"The Government has a track record in secretly raising taxes for the poorest, most vulnerable people in our society. Now they are planning to abruptly take away a vital source of their income.

"This is a scheme that probably won't save any money, but will make an enormous difference to the families suddenly losing 20% of their income.

"Gordon Brown has once again abandoned the people who need the most help."