The leader of Haringey Borough Council says some people may have to move out of the area when cuts to benefits start to bite.
Claire Kober made her comments in an interview on the BBC’s current affairs programme Newsnight, which looked at the effects the benefit cap would have on people living in Haringey, which will be introduced next month.
In December last year the Government announced the national introduction of a £500-a-week benefit cap would only be initially introduced in London boroughs of Haringey, Enfield, Bromley and Croydon.
In the film it was revealed some people on benefits are being advised by Haringey Council they could move out of the borough, but during the pilot nobody will be forced out against their will.
Councillor Kober said: “What we have to have is an honest conversation with people. I don’t think people would be very happy if we didn’t explore with them the fact they may need to move in the long term.
“If this policy doesn’t change then people will be in a situation where their housing costs are going to remain high while their benefit is much reduced, and it becomes an unsustainable situation which it’s not something councils can pick up.”
She said long term the council will not be able to pick up the bill left by the benefit shortfall and some people may have to move out of the area to where it is cheaper to live.
After being tested in Haringey and the three other London boroughs the policy will be rolled out nationwide in the autumn.
According to figures from the Department of Work and Pensions, up to 1,300 households in Haringey will be affected by the changes that would see benefits limited to £26,000 a year.