70,000 families hit by child tax credit change

The families, who all have children and are on either incapacity or bereavement benefit and income support or Jobseeker's Allowance, will lose their automatic right to full housing benefit as the credits are phased in during the next year.

The families will have to reapply for housing benefit, which benefits experts say will confuse the most vulnerable claimants. Claimants will get the same amount of money through tax credits and benefits as they did under the old system.

However, housing benefit may now only cover part of their rent and they will have to pay the rest themselves, which could lead to tenants getting into arrears without realising it.

The Department for Work and Pensions is removing the part of income support that pays for a claimant's children. It will be replaced with the child tax credit.

Benefits trainer and consultant Maggie Fitzsimons said: "People will be confused by it. These families will be the collateral damage of the big change."

A DWP spokesman said: "We wrote to people affected before the credit came in but we will also write to them again now the tax credits are in place."