Benefits cuts due to come into effect within weeks could send levels of homelessness and child poverty in Hyndburn soaring, local agencies are warning.

Experts say that some of the poorest families are facing a “ticking time bomb” which will see more than 10,000 people lose out.

It is thought that the shake up could see some families miss out on £800 a year.

Shocking new figures released by the Citizens Advice Bureau have revealed the devastating effect of a series of cuts due to be implemented in April.

*Around 9,670 people are expected to be immediately worse off under a 20 per cent to Council Tax benefit with some 5,635 homes hit by up to £205 a year.

*Around 900 homes in Hyndburn are expected to be hit by a new bedroom tax on tenants with empty rooms in their homes claiming housing benefits, according to figures by the National Housing Federation.

*Nearly 60 per cent of Disability Living Allowance claimants are expected to see their benefits cut under a replacement scheme from October 2013 – with half of these having their allowance removed entirely.

*There also remain fears over the impact of changeover to Universal Benefit from October 2013 - when a single payment will replace six main working age benefits. Payment rates have yet to be announced, but Hyndburn CAB is expecting major cuts.

Paul Harding, advice session supervisor with the CAB, said the cuts comprised ‘the single biggest change to the welfare benefits system in decades’.

He said: “The changes are most likely to affect those currently living in absolute poverty and suffering social exclusion who are already having to forgo basic essentials to make ends meet.

“This is likely to have a huge effect on issues such as child poverty.

“Although the exact magnitude of these changes is yet to be seen, we expect an increase in the demand for support services from the poorest members of society at a time when those services are already being withdrawn or reduced in many cases.

“Benefit and debt are by far the largest enquiry areas that we deal with and we would expect the number of enquiries in both areas to increase after April when the welfare reforms are introduced.”

Paul said there is a clear link between debt and both physical and mental health and says it is not unreasonable to expect an increase in mental health conditions.

Social landlord Hyndburn Homes, says 393 of its households face losing 14 per cent of their housing benefit, while a further 65 will lose 25 per cent.

Judith Winterbourne, customer services director of social landlord Symphony Housing Group which includes Hyndburn Homes, said: “The bedroom tax will impact on so many people - those on low incomes, the disabled, and people with severe health problems.

“Some rely on benefit to survive and it's going to be cut.

“The government tries to portray those on benefits as people who want something for nothing.

“But there are tenants who have worked all their lives, have been made redundant through no fault of their own, and now have to rely on housing benefit.

“They have lived in the same house, brought up their children there, paid their rent on time, and some are now going to be forced to move out. They are suffering because of something that is not of their making.”

Hyndburn Homes has warned its tenants to find out now if they will be affected by cuts.

Elaine Embley, Hyndburn Homes’ welfare reform adviser,is working to ensure tenants receive energy-saving guidance to help save them money on gas and electricity bills, and money management skills to relieve the pain.

Mrs Embley said: “People seem to understand that changes to benefits are coming from April but they have not taken on board how much it’s going to impact on them financially.

“If you’re losing £11 a week for having one spare bedroom, having to find £3 or £4 towards your council tax as well is a lot of money. In our experience, those who are being hardest hit are single people who are struggling to find work and are on £71 a week Jobseeker’s Allowance. Losing £15 from that £71 is a lot of money and they don’t know how they’ll cope.

“It’s not just the financial effects. If people decide they can’t afford to stay where they are, and instead they want to downsize to a smaller property to avoid paying the bedroom tax, they face moving from neighbourhoods where they have connections – family, friends and support networks around them.”

Hyndburn Homes bosses also admit they may struggle to re-accommodate households looking to downsize, as they have a shortage of one-bedroom homes and two-bedroom houses demanded by families.

Maundy Relief is braced for a ‘big increase’ in homelessness over the next few months as the cuts bite.

Project manager Lucy Hardwick said: “Our housing stock in Hyndburn is two bedroom terraces and there’s no way a single person under 35 can afford that. There is no alternative housing for them.

“A lot of properties are in very poor repair and could never house a family without a massive investment.

“Having them tenanted by single people is not a bad option because they’re still in use.”

Ms Hardwick described the package of benefits cuts as ‘a ticking time bomb’.

She added: “The current cuts are unfair and having a disproportionate effect on the most vulnerable in society - and they will get more severe.

“The cuts affect disabled people and people with mental health problems. When they bring in Universal Benefit there will also be a massive risk to our service users of getting a single payment because a lot of them are not good at managing their money. It’s going to be boom time for bailiffs.”

Last month Hyndburn council voted unanimously for a council tax support scheme which will slash amounts paid out by 20 per cent, for all working age claimants.

Hyndburn council is to set up an extreme hardship fund to include help for those most in need.

The welfare changes will not only affect those at the bottom of the income scale.

The government has also cut child benefit for families where one adult earns more than £50,000, with the £33.70 per week allowance for two children axed altogether if one parent earns £60,000 or more.

However, child benefit will still be paid in full to households earning more than £60,000 provided neither parent earns more than the £50,000 cap.

The move has been labelled unfair and criticised by those who claims child benefit should be paid universally irrespective of income.