THE council has said it may start paying the 2,156 families who will be affected by the so-called bedroom tax in April to move into smaller properties.
In an attempt to prevents tenants from being hit by the loss of benefits for having spare rooms, the council says it will offer a special transfer payment scheme which pays £2,000 for each bedroom freed up, with the maximum payment set at £8,000.
Councillor Sara Bashford, cabinet member for corporate and voluntary services, said: "We want to help Croydon residents who will be affected by the government's welfare reforms. We urge those who are unsure of how the benefit changes will affect them, or who have any concerns, to get in touch with us."
Overall, Croydon has 15,820 people who will be affected by April's welfare changes. Just over 14,000 of these will lose on average £7 a week from changes to council tax support.
The 193 people affected by both the benefit cap and the changes to council tax benefits will be the worst hit, with an average loss of £94 a week.
There will be 621 people losing £79 a week from the benefit cap alone and 1,149 people affected by both council tax changes and the bedroom tax who will lose £25 per week.
Residents can find out more at www.croydon.gov.uk/benefitchanges