THOUSANDS of people in Bolton will have their benefits slashed on Monday when the biggest shake-up of welfare in a generation comes into force.

The government is introducing changes to the benefit system — which it says will encourage people to get back to work, as well as freeing up social housing for people who need it most. Changes include the under occupancy penalty — labelled “bedroom tax”

by opponents.

The government’s social fund and council tax benefit system will also be scrapped and replaced by Bolton Council’s own schemes.

Under occupancy charges will hit almost 3,500 working age Bolton households who are living in social housing and are in receipt of housing benefit because their accommodation has been deemed too big for their needs.

They will lose a combined total of more than £2 million, or £12 each per week.

The government says the move is aimed at freeing up social housing to cut waiting lists but the move has proved hugely controversial, with opponents claiming it will hit society’s most vulnerable people.

More than 100 people protested in Victoria Square, one of several demonstrations to take place nationally.

Council tax benefit will also be scrapped and replaced with the council’s own relief scheme, but cuts to its funding mean more than 3,500 claimants across the borough — more than a quarter of people currently receiving council tax benefit — will lose a combined £377,000 a year.

Some could receive a council tax bill for the first time.

Also on its way out is the social fund, which includes crisis loans and community care grants for the vulnerable, to be replaced with two council schemes which will provide goods and services instead of cash.

Monday’s changes are just the start of a huge shake-up of the welfare state, with the controversial universal credit system to replace a range of benefits later this year.

The switch will also see changes to the way rent is paid, with tenants being expected to pay their own rent rather than have housing benefit paid directly to their landlord as it is now.

The government said it will help people prepare for the world of work by managing their own money, but some experts fear the move will lead to a rise in rent arrears and evictions.

Bolton at Home — the borough’s biggest social landlord which operates 18,000 properties—claims it could lose up to £2 million of its rental income due to welfare reforms.

And Maura Jackson, director of homeless charity Bolton Young Persons’ Housing Scheme, said her organisation could be forced to chase tenants for rent, many of whom she says are incapable of managing money.

Bolton at Home has conducted a survey about bedroom tax.

Of 1,514 tenants questioned, 600 would like to downsize, 785 said they would stay and pay, while 240 requested debt and money advice.

But the organisation claims it will take it between three and eight years to move everyone to suitable accommodation.

Jon Lord, Bolton at Home’s chief executive, said: “We campaigned hard to get the government to reconsider their bedroom tax policy.

“We’ve been working incredibly hard to contact all of our tenants affected by welfare reform and support them in the best ways possible, as well as making sure our organisation is financially sound and able to deal with this period of change.”

Another issue facing Bolton residents is cuts to legal aid, which means Bolton Citizens Advice Bureau is losing £500,000 — 40 per cent of its funding — with up to 18 of its 50 staff under threat of redundancy.

Leanne Merga, advice and assessment services manager at Bolton CAB, said: “There will be a much greater focus on giving out food parcels and fuel vouchers over monetary payments, which will be available only in exceptional cases.

“At the moment we can help with large amounts of cases at quite an indepth level but with the cuts this will change.

“This could lead to some people’s debt escalating if they can’t manage to follow up advice properly on their own.”

Michelle Clarke, chief officer at Bolton Carers’ Support Forum, added: “Many carers already struggle financially and the help they are given doesn’t always cover the equipment they have to buy for the person they care for.”