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SCHOOLS in Westminster could lose out on vital funding because of housing benefit cuts, an MP has warned.

Westminster North Labour MP Karen Buck said new limits to the amount claimants can receive in housing benefit would kick in at “the worst possible time” and could lead to schools losing large amounts of money.

But yesterday (Thursday) a City Hall spokeswoman said pupil head-counts would remain high owing to the consistent popularity of the borough’s schools.

Ms Buck said: “By their [Westminster City Council’s] own estimate 4,000 children will be at risk of having to move because of changes to housing benefit. The changes have an impact later this year and early next year, exactly the time when head counts are being carried out and funding allocated. If a school loses even just 20 pupils that is the equivalent of one teacher.”

According to a City Hall report, Paddington Green Primary is expected to be one of the worst affected, with up to 180 surplus places predicted.

Gateway Primary School in Marylebone, another of those hardest hit, has been warned it could be left with up to 173 surplus places. 

Philippa Roe, council cabinet member for strategic finance, said: “The figures in this report represent a worst-case scenario and need to be put into context. The figures were based on all pupils whose families would be affected by the caps, not those expected to have to move. This report also did not take into account other families who could move into properties vacated because of the caps, pupils who would move home but stay at the same school and the fact that our schools are oversubscribed.

“Moreover 20 per cent of pupils who attend primary schools in Westminster already live out of the borough. Therefore, we do not believe that we are going to have lots of empty desks. 

“Every family affected will be offered assistance and support and we will be talking to landlords to try and negotiate lower rents. There is certainly no need for anyone to end up on the streets, in a B&B or hostel. We remain of the view that we simply cannot continue with a system where people are getting as much as £104,000 a year to live in homes that the average family can only dream of.”