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Thousands of unemployed workers who already face tough competition for every job vacancy risk being penalised in a revamp on benefits, it has been warned.
Planned changes to the benefits system will see those claiming Job Seekers' Allowance for 12 months or more face a 10 per cent cut in their housing benefit.
The National Housing Federation warned the change took no account of the state of local employment markets and could see thousands of jobless families plunged into poverty and increasing debt as they struggle to make up the shortfall in rent.
It comes as research by the University of York suggests more than 130,000 hard up households across the country will lose £475 a year on average from their housing benefit payments if they are out of work for more than a year.
Jenny Allen, South West Regional Manager for the National Housing Federation said: "With the Government planning to move large numbers of people from incapacity benefit onto Job Seeker's Allowance we can expect to see even more people affected in the South West if they are also in receipt of housing benefit.
"Given the current economic climate it's not surprising there's such high demand for vacancies around the region and reducing the housing allowance for those out of work means punishing people for failing to find a job in a very difficult market."
New figures show there are up to 12 unemployed people actively seeking work for every vacancy in parts of the Westcountry.
The highest ratio (11.8) of benefits claimants is in Torridge where there are 1,027 claimants for every 87 vacancies. In Plymouth it is 8.5 and in Cornwall 5.8.
Across the wider South West there are more than 79,400 Job Seeker's Allowance claimants, actively looking for work. With just over 22,000 jobs there are 3.6 claimants per vacancy.
The housing federation warned the situation further reduced the chances of the 9,000 or so people who have been seeking employment for 12 months or more.
The figures were released ahead of the publication of the Welfare Reform Bill.
Campaigners are hoping Liberal Democrat disquiet will lead to amendments.
Ms Allen added: "The present system allows for cuts to be made to job seekers' allowance for those who refuse to work, and while people should be encouraged into employment, threatening the homes of those who are unemployed isn't the right way.
"In fact, it's well known that it's harder for people to get a job if they don't have stable accommodation, so taking that away from them when they are trying to get back into active employment seems counter-intuitive."
Cornwall news, Jobs, Sports, Cars, Homes | This is Cornwall
Thousands of unemployed workers who already face tough competition for every job vacancy risk being penalised in a revamp on benefits, it has been warned.
Planned changes to the benefits system will see those claiming Job Seekers' Allowance for 12 months or more face a 10 per cent cut in their housing benefit.
The National Housing Federation warned the change took no account of the state of local employment markets and could see thousands of jobless families plunged into poverty and increasing debt as they struggle to make up the shortfall in rent.
It comes as research by the University of York suggests more than 130,000 hard up households across the country will lose £475 a year on average from their housing benefit payments if they are out of work for more than a year.
Jenny Allen, South West Regional Manager for the National Housing Federation said: "With the Government planning to move large numbers of people from incapacity benefit onto Job Seeker's Allowance we can expect to see even more people affected in the South West if they are also in receipt of housing benefit.
"Given the current economic climate it's not surprising there's such high demand for vacancies around the region and reducing the housing allowance for those out of work means punishing people for failing to find a job in a very difficult market."
New figures show there are up to 12 unemployed people actively seeking work for every vacancy in parts of the Westcountry.
The highest ratio (11.8) of benefits claimants is in Torridge where there are 1,027 claimants for every 87 vacancies. In Plymouth it is 8.5 and in Cornwall 5.8.
Across the wider South West there are more than 79,400 Job Seeker's Allowance claimants, actively looking for work. With just over 22,000 jobs there are 3.6 claimants per vacancy.
The housing federation warned the situation further reduced the chances of the 9,000 or so people who have been seeking employment for 12 months or more.
The figures were released ahead of the publication of the Welfare Reform Bill.
Campaigners are hoping Liberal Democrat disquiet will lead to amendments.
Ms Allen added: "The present system allows for cuts to be made to job seekers' allowance for those who refuse to work, and while people should be encouraged into employment, threatening the homes of those who are unemployed isn't the right way.
"In fact, it's well known that it's harder for people to get a job if they don't have stable accommodation, so taking that away from them when they are trying to get back into active employment seems counter-intuitive."
Cornwall news, Jobs, Sports, Cars, Homes | This is Cornwall