MORE than 10,000 people in the North-East could be at risk of becoming homeless as a result of plans to cut housing benefit, according to the National Housing Federation.

The federation, an umbrella group which represents local housing federations, said the plans announced in the recent emergency Budget would see benefit cut by ten per cent for people claiming jobseekers allowance for 12 months or more.

It said single, childless claimants in particular would be hit hardest because they would not be entitled to any other income support from the state.

This could see those affected struggle to pay their rent and fall into arrears with the potential that they would be evicted and end up homeless.

The benefit cuts would apply to tenants in both the private and social rented sector and could make 10,989 people in the North-East homeless along with 17,622 in Yorkshire and Humberside, the federation estimated.

Monica Burns, North-East regional manager, said: "Cutting housing benefit could have a catastrophic impact on the lives of thousands of people who despite their best efforts have failed to find work after 12 months."