So They knew it would cost more than it saved, but still did it

This taken from the Observer

"David Cameron has been warned by one of his most trusted cabinet ministers that his welfare policies risk making 40,000 families homeless.

The extraordinary claim, in a letter to the prime minister from the office of Eric Pickles, the communities secretary, exposes deep splits at the heart of government over plans to cap benefit at £500 a week per family.

The letter, leaked to the Observer, reveals Pickles's belief that the cap – announced with great fanfare at last year's Tory conference – will increase the burden on taxpayers, because thousands of families will be unable to pay their rent and will have to seek local government help. It blows apart the government's public insistence that a limit on benefit payments will have little impact on homelessness and child poverty.

Written by Nico Heslop, Pickles's private secretary, at the clear instigation of the minister, the letter lays bare fears of mass homelessness "disproportionately impacting on families". It says:

■ 40,000 families will be made homeless by the welfare reforms, putting further strain on services already "seeing increased pressures".

■ An estimated £270m saving from the benefits cap will be wiped out by the need to divert resources to help the newly homeless and is likely to "generate a net cost".

■ Half of the 56,000 affordable homes the government expects to be constructed by 2015 will not be built because developers will realise they will not be able to recoup even 80% of market rates from tenants."

This must show just how vicious the Conservative lib Dem government has become.

Shelter says "With 21% of people struggling to meet housing costs, it's naive to think you can cut support without putting some people at risk of losing their home. The coalition government should stop bulldozing through badly thought-through policies while ignoring independent evidence, its own expert panel and the views of those who will deal with the very real impact on people."

Enver Solomon, policy director at the Children's Society, said: "The social costs of the cap are huge and would have disastrous consequences for many children."

So the benefit cap will cost more, transferring the budget from government to local government and undermining the affordable house buildings.

This is yet another attack on lower income families, this without any savings with a high likely hood of costing more, so vicious and incompetent.

Conservatives and Lib Dems true to type.