Homelessness fears due to soaring debt

Around 200,000 people risk being made homeless after the government's decision to cut benefits could see people consumed by debt.

The National Housing Federation (NHF) claims that a 10 per cent reduction in payments for those who claim Jobseeker's Allowance will lead to a steep rise in evictions.

The organisation fears that the move will lead to a debt spiral, as people will be hit hardest in London and the southeast and be forced to move to other areas where there are less jobs, increasing the chances of requiring debt solutions.

NHF chief executive David Orr has called the proposals "disturbing and unfair", claiming they "could have a catastrophic impact on the lives of thousands of people".

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