By Iain Watson & Rebecca Keating
BBC News
The Olympic Park sits in the borough of Newham - one of the poorest in London
A
London council has been accused of starting "social cleansing" in the
capital by asking a Stoke-on-Trent housing association to take on up to
500 families on housing benefit.
Newham Council says it can no longer afford to house tenants on its waiting list in private accommodation.
The gap between market rents and the housing allowance is too big, it says.
But the association says such a move could mark the start of "thousands of needy people" being dumped elsewhere.
Labour MPs say the decision to seek accommodation outside
London is proof that the government's policy of capping housing benefit
is already "beginning to unravel".
Olympic effect
Newham Council, which is Labour-controlled, is in the east of the city and will host this summer's Olympics.
It has written to the Brighter Futures Housing Association in Stoke, offering it the "opportunity" to lease homes to it.
The letter says the local private rental sector is beginning
to "overheat" because of the "onset of the Olympic Games and the buoyant
young professionals market".
It says the council can no longer afford to house tenants on
its waiting list in private accommodation as the gap between market
rents and the local housing allowance has become too great.
The council has been "forced to look further afield for alternative supply", it adds.
'Right-wing extremism'
The Brighter Futures chief executive officer, Gill Brown, has
not formally replied to Newham Council's offer but says she will not
agree.
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“Start Quote
Newham - along with other London councils - is under significant pressure”
Newham Council
Spokesman
"I think there is a real issue of social cleansing going on," she said.
"We are very anxious about this letter which we believe
signals the start of a movement which could see thousands of needy
people dumped in Stoke with no proper plan for their support or their
welfare.
"We have seen in the past relocation putting strain on other
services because the medical, education and justice systems are
unprepared for an influx of very needy people.
"The result was huge, unplanned pressure on local services,
the collapse of already vulnerable neighbourhoods and the rise of
divisive right-wing extremism.
"We believe that, if London boroughs are allowed to export
their most vulnerable and challenging families to cities like
Stoke-on-Trent, then exactly the same will happen again."
'So desperate'
A spokesman for Newham Council said the government's decision
to cap housing benefit payments at £400 per week for a four-bedroom home
was "exacerbating the problem" of finding homes for low-income
families.
"Newham - along with other London councils - is under significant pressure," the spokesman said.
"We are doing everything we can to ensure we have good quality, affordable housing which is fairly distributed.
"Alongside a number of other London councils, we are also
exploring the option of working with housing associations outside the
borough to house people with an immediate need in the private sector,
when there is no other alternative."
Newham Council is offering to pay Brighter Futures 90% of the local housing allowance plus £60 per week.
Brighter Futures estimates the scheme could save Newham Council £5,250 a year for a family housed in a three-bedroom home.
The Labour MP for Westminster North, Karen Buck, says Newham Council's offer could be just the tip of the iceberg.
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“Start Quote
An unplanned influx of Olympic exiles will do us little good”
Tristram Hunt
Labour MP for Stoke-on-Trent Central
"What is so worrying about the
letter from Newham is not that this is Newham Council's fault but if a
very poor borough in east London feels itself so desperate that it has
to try and find accommodation as far away as Stoke, what is that telling
us about demand?" she said.
"We know from London Councils that 88,000 households have
private rents above the new limits for housing benefit and in theory
these families were meant to find new homes in places like Newham.
"Obviously, even before the housing benefit cuts have really began to bite we have seen that this policy will unravel."
When the housing benefit cap was announced in 2010, London
Mayor Boris Johnson said: "The last thing we want to have in our city is
a situation such as Paris where the less well-off are pushed out to the
suburbs."
He said he would "not accept any kind of Kosovo-style social cleansing of London".
'London's exiles'
The Labour MP for Stoke-on-Trent Central, Tristram Hunt, says
the rest of the country "certainly doesn't need the difficult-to-house
cases London boroughs have had enough of".
"An unplanned influx of Olympic exiles will do us little good," he said.
"The 2012 Games are bringing huge riches into London. The least those boroughs could do is look after their poor and needy.
"We look forward to welcoming the flame from Stratford - but not east London's exiles."
Brighter Futures is calling on the Local Government
Association to draw up a code of conduct for members to ensure that no
homeless people are moved without the permission of the council in the
new area.
It wants to ensure local councils have assessed whether public services can cope with new arrivals before families are moved.