8:25AM, Tue Oct 23, 2012

Austerity Cuts Mean 27,000 Hard Up Households In Newcastle Will Be Worse Off

By Hugh Macknight Location: Newcastle

An anti-cuts demonstrator wears an 'anonymous' mask at a protest

Up to 27,000 households in Newcastle will be worse off as a result of the biggest changes to the welfare system in 60 years.

And up to £83m will be removed from the local economy as a result of reductions and changes to benefits, according to a report due to the City Council’s cabinet.

Earlier this year the Chancellor announced £10bn would be saved from public expenditure - on top of £18 billion already announced for 2014/15.

The council, which has to save £90m itself over the next three years, has outlined a series of measures to try and reduce the impact on families.

They will target those most at risk and provide welfare rights advice on housing, employment, and money.

Deputy leader of Newcastle City Council, Coun Joyce McCarty, said: “We have a duty to help those in need, but our ability to support them will be compounded by the fact that as a local authority we have to save £90m over the next three years.

“We will continue to lobby hard and urge Government to protect the poorest and most vulnerable in our society.”

Up to 7,000 tenants could lost around £14 per week due to the bedroom tax and many others will be affected by the introduction of Universal Credit and the removal of direct payments.

Many will face the risk of losing their home due to cuts in housing benefit so the council and Your Homes Newcastle will try to support them to prevent this.

Changes in Government subsidies for housing costs will create the need to develop different housing for example shared housing.