A warning has been made that thousands of job seekers in the South East risk being penalised in a revamp on benefits.

New figures show there are up to 26 unemployed people actively seeking work for every vacancy in parts of the South East, and that could soon see thousands of people in the region unfairly penalised.

The National Housing Federation warning comes as the government is planning changes to the benefits system which would see those claiming Job Seekers’ Allowance (JSA) for 12 months or more face a 10% cut in their housing benefit, if they claim that too.

It comes as research by the University of York suggests that nationally, more than 130,000 hard up households will lose £475 a year on average from their housing benefit payments if they are out of work for more than a year – despite the fact that claimants will have already proved that they have been actively looking for a job throughout that period. The Federation fears that as the change takes no account of the state of local employment markets, it could see thousands of jobless families plunged into poverty, debt and even forced out of their homes as they struggle to make up the shortfall in rent.

In the South East there are almost 128,000 JSA claimants, actively looking for work. But with just over 34,000 jobs there are 3.7 claimants per vacancy. That further reduces the chances of the 20,000 or so people who have been seeking employment for 12 months or more.

In Thanet there are 4,074 claimants chasing just 275 jobs although in Dover 2,150 have a marginally better chance of work with 276 vacancies.

Shepway has 335 vacancies for its 2,462 claimants and has one of the highest number of people claiming JSA for over 12 months with 480.

Thanet has 805 claiming JSA for more than a year.

The figures are released ahead of the publication of the Welfare Reform Bill, which will set out how the government plans to significantly reduce the country’s overall benefits’ bill.

Liberal Democrat Deputy Leader Simon Hughes has publicly criticised the policy and led a backbench revolt against the plan when he voted against introducing the 10% cut following a Commons debate last year. Despite losing the vote, there remains significant opposition to the proposal from Liberal Democrat MPs who remain optimistic that it could still be ditched.

Warren Finney, South East Regional Manager for the National Housing Federation said: ‘Cutting housing allowance for those out of work but actively seeking employment just doesn’t make sense - it’s a lot harder to get a job if you haven’t got stable accommodation. Reducing the housing allowance for those out of work in this economic climate is basically punishing people for failing to find a job in a very difficult market.

‘Making matters worse, the government is planning to move large numbers of people off incapacity benefit and onto Job Seekers’ Allowance so we can expect to see even more people affected in the South East if they are also in receipt of housing benefit.’

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