Lib Dems 'risk voter exodus' over housing benefit cuts

The Liberal Democrats could face a "substantial loss" in support because of Government plans to overhaul housing benefit as part of its welfare reforms, the National Housing Federation (NHF) has warned.

The organisation said the proposals would see payments slashed for recipients in the private rented sector, as well as around 670,000 social housing tenants judged to be under-occupying their home.

It added that a YouGov poll of people who voted Lib Dem in the 2010 general election shows 45 per cent believe the current welfare reform programme does not reflect the values of the party, while 51 per cent said it is not listening to its own supporters on the issue.

Furthermore, 49 per cent said the Government does not care about the impact the proposed changes to housing benefit will have on those who rely on it.

Another 57 per cent thought people with disabilities should be exempt from the changes. The NHF said around 450,000 of those who would see their housing benefit cut under the current proposals fall into this category.

Overall, 61 per cent of Liberal Democrat supporters said they party is being too easily led by its Conservative partners in the Coalition - and one in five claimed they would not vote for the party again because of its stance on welfare reform.

NHF chief executive, David Orr, said: "I would urge the party leadership to reconsider its unswerving support for the programme of slashing welfare support and to stand up for its 2010 supporters believe in.

"The Government has long said that as it drives through its austerity programme it will look after the most vulnerable in society. This is a promise that people who voted for the Liberal Democrats at the last election want the Government to honour."

In response, a Liberal Democrat spokesman told Housing Excellence that the NHF is "totally overlooking" many positive aspects of the welfare reform programme, such as the proposed Universal Credit, which will simplify benefits, leave 2.5 million claimants better off and make it easier for people to access their entitlements.

He added that housing benefit currently suffers from serious and widely acknowledged problems, with it often being cited as a factor in making someone better off on state support than being in work.

"It desperately needs to be reformed, and all political parties accept that," he said.

On the party's role in shaping welfare reform, he commented: "The Lib Dems have played a crucial role in making sure that some of the more counterproductive changes to benefits have been dropped. It was thanks to Lib Dem pressure than plans for a ten per cent cut in housing benefit for those out of work for over a year were dropped.

"We will continue to work hard to get changes in other areas, including the proposed total cap on benefits, which we believe would have serious impact on child poverty."