Cap on benefits ‘is making London a segregated city’, Assembly member warns

 
15 November 2013

London risks becoming segregated like Paris as thousands of poorer families leave the city centre, Boris Johnson was warned today.

Figures show a big fall in the year to August in the number of households claiming housing benefit for private sector homes in inner London.

This follows the introduction of housing benefit limits of £250 a week for a one-bedroom property, rising to £400 for a four-bedroom house, and a total benefits cap of £26,000 a year.

In Inner London West — Westminster, Kensington & Chelsea, Hammersmith & Fulham, Wandsworth and Camden — the number of households claiming fell by 16 per cent on two years ago to 25,816 compared to 30,555.

The biggest drops in August were in Westminster, down 29 per cent or 2,543 households and Kensington & Chelsea, down 24 per cent or 977 households. Westminster has denied “no-go” areas are being created.

Inner London East & South — the City of London, Hackney, Haringey, Islington, Lambeth, Lewisham, Newham, Southwark, Tower Hamlets, also saw a small fall.

There were rises in the number of claimants in all three outer London areas, believed to be mainly working families on low incomes, and fuelling claims of an exodus of less-well-off households from the city centre.

“The Mayor has to admit that benefit cuts are making parts of London no-go areas for people on low wages and seeking work,” said Darren Johnson, Green Party member of the London Assembly.

“The Mayor has to lobby against this, otherwise we will become a segregated city like Paris.”

Richard Blakeway, Deputy Mayor for housing, land and property, said: “The Mayor is working to deliver a record number of affordable homes.”

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