NEARLY all supported housing landlords would have to evict their elderly and disabled tenants if George Osborne gets his way on welfare caps, a survey found yesterday.

According to new research by Inside Housing magazine, 95 per cent of all providers would have to transform or close down their special needs homes if Mr Osborne’s housing benefit cap comes into place.

Previous figures already warned that the £400 million cuts would affect over 440,000 people.

When quizzed over the proposed policy, 28 per cent of the 82 landlords approached by Inside Housing admitted that all their schemes would become "unviable."

And 85 per cent of them said their homes would have to be closed, turned into general needs facilities or both.

Labour shadow housing and planning minister John Healey said the new survey proved how "catastrophic" the measure would be.

"George Osborne must halt these dangerous plans, publish a full impact assessment and consult fully with housing providers to safeguard this essential housing for those who need it," he added.

The Chancellor’s plans are to bring housing benefits to the level of Local Housing Allowance and promote "discretionary housing payments" to make up for the difference.

But Disabled People Against Cuts co-founder Linda Burnip said the facultative nature of the payments would not make for an "adequate housing measure."

She added: "Supporting housing schemes for disabled and older people are essential to enable many people to continue to live an independent life.

"Already previously ringfenced funding for supported housing which used to go out to local authorities has been scrapped and should this additional cut go ahead consequences are likely to be disabled people forced back into residential carehomes or left in danger."