MP says rent rise plan is poverty trap

from IC South London

RENTS for council tenants could rocket under radical Government proposals published this week.

The report, commissioned by Communities and Local Government Secretary MP Ruth Kelly, suggests social housing tenants could pay nearly as much as their private-sector counterparts.

It says this would reduce the need for Government subsidy. Children's rights to take over their parents' properties could also end if suggestions in the report are taken up. Report author Professor John Hills, of London School of Economics, wrote: "Some of the options could involve huge financial and physical upheaval for millions of households. "However, thinking through what might change at the most radical end may give insights into both the disadvantages and advantages of directions of change that might be pursued more modestly."

Liberal Democrat North Southwark and Bermondsey MP Simon Hughes, pictured left, urged the Government not to rush into any decisions.

He said: "I think this is a challenging report and we must be very careful about following the suggestions that social housing should go up to market rent. "The danger of that is you trap people into poverty. "I think we need to have a wide debate and I'm going to start that in Parliament in March."

Launching the report, Mrs Kelly said: "Social housing has made a vital contribution to our society for generations. "There are tough decisions to be made and we can't expect reforms to make a difference overnight."