A STAGGERING 36,000 families face eviction across the Merseyside and West Cheshire area because of deep cuts to housing benefit – unless their landlords agree to slash their rent.

In Wirral, 95% of households claiming housing benefit currently live in properties that will be too expensive under new rules designed to save £1.8bn for the taxpayer, new figures show.

More than nine out of 10 claimants will also be hit in Knowsley (92.6%), St Helens (90.9%), Warrington (93.6%) and Cheshire West and Chester (92.2%). In Liverpool, 10,650 families will be affected.

The Government has insisted the shake-up – which will slash weekly payments for a typical Liverpool home by £11.44 – is designed to force greedy private landlords to cut rents.

But, last night, the British Property Federation, which represents landlords, said most simply could not afford a sudden dip in income – and would be forced to evict instead.

Liz Peace, the organisation’s chief executive, said: “Simply cutting allowances across the board will create ghettos if people suddenly have to move somewhere else.

“Tamper too much and there is a danger, in certain areas, of landlords leaving the sector to capitalise on higher market rents. The Government has underestimated the importance of housing.”