The Government today made a U-turn over plans that could have left low-income families £780 a year worse off.
Proposed changes to the Local Housing Allowance (LHA), which would have meant some of the poorest families in the country losing up to 20% of their income, have been scrapped in today’s Pre-Budget Report.
Commenting, Liberal Democrat Shadow Housing Minister, Sarah Teather who has been campaigning against the Government’s proposed changes, said:
“With an election on the horizon, hundreds of thousands of the poorest families in Britain have today been granted a last minute reprieve.
“The idea that Gordon Brown could solve the budget deficit by picking on the poorest should never even have been on the table.
“Just as on the 10p tax debacle, Gordon Brown has had his fingers well and truly burnt. This affair should be a warning to Labour that the public will not swallow their knee jerk reaction of swiping money from those at the bottom.”