Rich and poor: ‘cuts will split our borough in two’

Published: 24 June 2010
by RICHARD OSLEY

THE Town Hall warned yesterday that Chancellor George Osborne’s caps to housing benefits could divide Camden in two.

Labour councillors believe a limit of £400 a week for families needing four-bedroom homes could make the southern parts of the borough too expensive. In the past up to a £1,000 was made available where needed.

With benefits capped below the famously expensive rents in inner London, the “social mix” is at risk, finance chief Councillor Theo Blackwell said.

He added: “We were elected in May to run the council on the basis that we would do our best to protect the benefits to the most vulnerable and that’s what we will do. This is a hit for the most disadvantaged.”

Around 1,000 families will be adversely affected by the cut announced in Mr Osborne, according to council forecasts.

“There were cases across the country where large amounts of benefits were paid needlessly but you can’t make policy on one case written about in the Daily Mail. It doesn’t reflect how housing benefit is really used in places like Camden,” said Cllr Blackwell. 

“By doing this, you risk people not being able to afford to live here. It will become a place where only the better off can afford to live.”

Camden’s ruling party is now investigating whether other London boroughs – where market rents will be higher than the benefits available – will embark on a joint lobby of government.

Although Mr Osborne delivered a raft of measures including the freezing of public sector pay, a hike in VAT and the axing of free swimming, finance officials said yesterday they will still not have a clearer picture about where cuts will be ordered until government spending plans are unveiled in October.

As an “unprotected” area of spending in the government’s economic plans to reduce the national deficit, local authorities will be expected to find 25 per cent of savings over four years.

This announcement was a “declaration of war against the council workforce”, said George Binette, Camden Unison’s branch secretary at a rally on the Town Hall steps on Monday night. 

Mr Binette repeatedly referred to the government as a “ConDem coalition”.

Mr Binette added: “The cabinet of millionaires seems determined to have a showdown with the public sector workforce and those who rely on the services we provide. The combination of VAT rising to 20 per cent and pay cuts is toxic.”

There were protests staged earlier on Monday outside council buildings and schools, but the call from union chiefs to the Labour council is an offer to work together rather than lock horns with it.

Public sector workers are angry they are being asked to accept a freeze as they already argue their 1 per cent pay rise last year was actually a cut because it did not keep pace with inflation.