HUNDREDS of unemployed people in East Lancashire are set to lose up to £75 a week in the Government's benefits shake-up, it has been claimed.

From Monday, people looking for work will have unemployment benefit or income support replaced by the Job Seeker's Allowance.

The Government claims the new system will be more effective, with just one set of rules and one claim form.

Opponents argue that some will lose benefit while others will be able to claim less. Blackburn Council has donated £1,000 to the Foundation for Social Justice, who have launched a legal battle to fight the new allowance in court.

Now the TUC is adding its weight to the campaign.

TUC general secretary John Monk says at least 1,535 people in Lancashire will lose up to £75 a week.

He said: "The Government is taking away half the benefit which people have paid for throughout their working lives."

But Education and Employment secretary Gillian Shephard, said: "JSA is an important element of the Government's labour market reforms which have proved successful in getting people back to work."

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