Man Dies Making Documentary About Homeless

A young documentary maker has been found dead while sleeping rough in freezing temperatures to highlight the plight of the homeless.

Lee Halpin, 26, had planned to spend a week living on the streets in his home city of Newcastle.

He began the project on Sunday but was apparently found dead three days later in a derelict building in the West End of the city.

How he died has not yet been confirmed but it is believed he may have died from hypothermia.

Speaking earlier on a YouTube video, he said the project was part of an application for an investigative journalism course to give an example of fearless reporting.

He said he had spoken to a homeless charity about the rise in the number of people on the streets and the possible repercussions of the bedroom tax.

"I'm about to go and spend a week being homeless in the West End of Newcastle.

"I will sleep rough for a week, scrounge for my food, access the services that other homeless individuals use," he said.

"I will interact with as many homeless people as possible and immerse myself in that lifestyle as deeply as I can."

He concluded the video by saying he hoped it showed his willingness to get to the heart of a story.

Mr Halpin's friend Daniel Lake told the Evening Chronicle: "No-one knows how he passed away, but we think it could have been hypothermia.

"He made the ultimate sacrifice trying to raise awareness about what was happening to other people."

A statement from Northumbria Police said: "Officers have arrested two men aged 26 and 30 on suspicion of being concerned in the supply of a controlled drug. They have been bailed pending further enquiries. A report is being prepared for the coroner into the death of the man."

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India: British Woman Found Dead In Kashmir

A Dutchman has been detained after a 24-year-old British woman was found murdered on a houseboat in Indian-administered Kashmir, police have confirmed.

The woman had allegedly been stabbed to death on a houseboat on Srinagar's Dal Lake, a popular tourist destination.

Kashmir Inspector General of Police Abdul Ghani Mir said the man was picked up as he tried to flee the valley with only his passport.

He said: "A 24-year-old British national was found murdered in a local houseboat this morning. A Dutch national, De Wit Richard, has been detained for investigations in this connection.

The woman's body was found at Dal Lake, a popular tourist destination

"While preliminary investigation has confirmed that the woman was murdered, we are investigating other angles. Forensic evidence is being collected.

"The Dutch national had fled from the houseboat in the night, leaving behind his belongings. He was trying to flee from the Valley, carrying only his passport. We flashed an alert for his arrest."

The man was held at Qazigund in south Kashmir's Anantag district, around 100km (62miles) from the lake where the woman's body was found.

Police and onlookers have gathered near the scene of the murder

Speaking near the murder scene, Deputy Inspector General of Police for central Kashmir Syed Afadul Mujtiba said: "There is one houseboat over here in which there were two tourists living.

"One tourist was there for about one month. She has been living here, an English tourist, and a Dutch tourist arrived two days ago, and now today in the morning the dead body of the female tourist has been found with incision wounds, sharp-edged weapon wounds, and the Dutch tourist has tried to escape.

"It appears that he has murdered this female tourist."

Sky's India correspondent Alex Rossi said: "Police say preliminary investigations have confirmed that this woman was murdered, but they are investigating other angles.

"Forensic evidence is being collected and the Dutch national is being questioned."

The Foreign Office says it is in touch with local authorities and the victim's family have been informed.

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HMV Rescue: Hilco Deal To Save Jobs And Shops

By Mark Kleinman, City Editor

HMV, Britain's last remaining independent music retail chain, is on the verge of being rescued in a £50m deal that will preserve 2,500 jobs.

Hilco, the specialist restructuring firm, is poised to sign a binding agreement to secure HMV's future following weeks of speculation that the chain and its historic logo could disappear from high streets.

The deal, which could be announced as early as this morning, will involve HMV emerging from administration, backed by a new company incorporated in the UK.

Hilco will acquire roughly 130 HMV-branded stores, and all nine of the outlets which operate under the cut-price music brand Fopp.

People close to the talks said an agreement was likely to be struck later although it could yet be delayed.

Hilco has been the frontrunner to become the new owner of HMV since soon after Deloitte was appointed as administrator at the end of January. Initially brought in to manage the retailer's business alongside Deloitte, the restructuring firm acquired HMV's debts just days later.

The chain is expected to be run by a combination of incumbent HMV and newly-appointed Hilco executives.

Major music companies and film studios, anxious to retain a major distribution channel on Britain's high streets, are understood to have agreed to new supply terms with HMV and have given their blessing to the deal. HMV's landlords, confronted with the prospect of scores more vacant shops, are also understood to be supportive.

Some of the shops being taken on by Hilco had been earmarked for closure by Deloitte, so the final redundancy toll from HMV's restructuring was unclear. Prior to falling into administration, HMV had 230 shops in the UK.

Hilco, which has successfully turned around the performance of HMV's Canadian business since buying it two years ago, also has plans to re-establish the brand in Ireland by reopening a store on Dublin's Henry Street.

HMV's 16 Irish outlets, including the famous Grafton Street shop that has hosted gigs by the likes of U2, were closed in January.

Since the turn of the year, thousands of jobs have disappeared from Britain's high streets as prominent chains including Blockbuster UK, Republic and Jessops have been forced to call in administrators.

Some have been reborn in truncated form, with Jessops acquired by the Dragons' Den entrepreneur Peter Jones and Republic taken over by Mike Ashley, the Sports Direct tycoon.

Trevor Moore, who had a brief stint running HMV before its collapse into administration, had hoped to put together a bid for the company but was made redundant in February.

Among the other suitors which looked at bidding for HMV were Asda, the supermarket chain, and Jon Moulton, the private equity veteran.

HMV had been struggling for several years, pinned down under a debt mountain that vastly outweighed its stock market value. Caught between the dual pressures of fast-growing competition from digital rivals and waning consumer confidence, the company had shed some of its most prized assets, including Waterstones, the books retailer.

Hilco has had a mixed track record investing in other British retailers, having bought assets from chains including Allied Carpets, Ethel Austin and Woolworths.

Neither Deloitte nor Hilco could be reached for comment.

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North Korea Moves Second Missile To East

By Mark Stone, on the South Korea border

North Korea has now moved two missiles to its east coast, loading them on mobile launchers, South Korea's Yonhap news agency said.

The agency cited a top government official.

"It has been confirmed that North Korea, early this week, transported two Musudan mid-range missiles by train to the east coast and loaded them on vehicles equipped with launch pads," Yonhap quoted the official as saying.

Seoul said earlier it had been seeking urgent information on the first Korean missile that had been moved to the east coast.

Intelligence officials from Washington, Tokyo and Seoul are monitoring the movement of the weapon.

The Musudan missile is a mid-range weapon, meaning it is capable of reaching South Korea and Japan and perhaps also the US territory of Guam in the Pacific Ocean.

"The range is between 3,000 to 4,000km. There are major US military forces in Guam and a fixed number of troops to deal with the Korean peninsula, so I think these facts can reduce the possible danger there," Kim Min-seok, South Korea's Defence Ministry spokesman, said.

Speaking to Sky News, a security advisor to the South Korean government said there is no doubt that Pyongyang's capability is concerning.

"The technological level of North Korean weapons has become much improved and better - especially their missile capability and their long-range artilleries," Kim Byungki said.

"It is more uncertain, it is less predictable, there are more ways for them to destabilise us and there are more ways for us to respond ... so it is more complex."

UN chief Ban Ki-moon said daily reports from Pyongyang were "really alarming and troubling" and urged North Korea to ease tensions.

"Nuclear threat is not a game, it is very serious," he said, adding that any misjudgement or miscalculation could have "very serious implications".

North Korea's young leader Kim Jong-Un has escalated his rhetoric

America says it is taking "all necessary precautions" to respond to the daily threats from the North Korean leadership.

President Barack Obama's spokesman insisted the US government was taking the threat extremely seriously.

"What we're seeing now is a familiar pattern of behaviour," Jay Carney said.

"Regrettable but familiar."

The Musudan, which is manoeuvrable on the back of a specially designed mobile launch pad, is untested but has a potential range of about 1,500-2,500 miles.

Its accuracy is unknown and most experts believe the North Koreans lack the technological ability to mount a nuclear warhead into its tip.

Musudan missiles, pictured here in 2010, are untested

Nevertheless, it can carry a significant load of conventional explosives which could cause considerable damage.

The Musudan does not have anywhere near the ability to reach the US mainland.

It is not clear whether military commanders in North Korea have been given orders to fire the weapon in anger or as a test.

However, given the level of rhetoric delivered by North Korean leader Kim Jong-Un and the number of US and South Korean military assets that are now in the region, the missile would be shot down within minutes of any launch.

The concern is that this could then lead to an uncontrollable escalation in military action by both sides.

More follows...

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Argentina Floods: Dozens Die As Rain Continues

At least 52 people have drowned in their homes and cars, or were electrocuted as floods swamped Buenos Aires.

Thousands have been evacuated from their homes

At least 46 died on Wednesday in and around the city of La Plata. Six deaths were reported a day earlier in Argentina's capital.

Many people climbed onto their roofs in the pouring rain after storm sewers flooded forcing water into houses.

"It started to rain really hard in the evening, and began to flood," Augustina Garcia Orsi, a 25-year-old student, said.

"I panicked. In two seconds I was up to my knees in water. It came up through the drains - I couldn't do anything."

Many claim officials have not done enough

The rains also flooded the country's largest oil refinery, causing a fire that took hours to put out.

The La Plata refinery suspended operations as a result, and Argentina's YPF oil company said an emergency team was evaluating how to get it restarted.

"Such intense rain in so little time has left many people trapped in their cars, in the streets, in some cases electrocuted," Governor Daniel Scioli said.

"We are giving priority to rescuing people who have been stuck in trees or on the roofs of their homes."

The region of Buenos Aires has been worst affected

President Cristina Fernandez visited Tolosa, a La Plata neighbourhood where she grew up and where her mother was among those evacuated.

She announced security measures to combat vandalism, help for identifying the dead, and three days of national mourning for the victims.

At least 2,500 people were evacuated from their homes to about 20 centres in the La Plata area, which is about 37 miles (60km) southeast of Argentina's capital.

The rains are expected to ease later

The flooding threatened to ruin food supplies across La Plata's metropolitan area, which has nearly one million people.

National Planning Minister Julio de Vido estimated that 280,000 people remain without power across the city and surrounding province of Buenos Aires, where most Argentines live.

"Our job is focused on restoring service, but we're going to wait until the equipment dries to guarantee the safety of the electricity workers, because we don't want any deaths," he said.

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North Korea Army: 'War Could Break Out Today'

The North Korean military says it has ratified a "merciless" attack against the United States, potentially involving a "cutting-edge" nuclear strike.

"The moment of explosion is approaching fast," the army said in a statement on state news agency KCNA.

War could break out "today or tomorrow", the statement said, quoting a spokesman for the General Staff of the Korean People's Army.

"The merciless operation of (our) revolutionary armed forces in this regard has been finally examined and ratified.

"The US had better ponder over the prevailing grave situation."

The North's rhetoric has been met by a display of US military strength

The North's Committee for Peaceful Reunification of Korea was later quoted by KCNA as threatening to withdraw its 53,000 workers from the joint industrial zone it shares with the South.

Pyongyang informed Seoul on Wednesday that it was stopping the daily movement of South Koreans to the Kaesong complex, the last real surviving point of contact between the two countries.

And the committee said: "If the South Korean puppets and conservative news media keep badmouthing (us), we will order all our workers to pull out from Kaesong."

North Korea's latest pronouncements came as Washington scrambled to reinforce its Pacific defences, preparing to move an advanced missile defence system to the island of Guam.

Mr Hagel said North Korea posed a "real and clear danger"

The land-based weapon, which is primed to shoot down short and medium-range missiles, will be sent to the US territory to defend its bases there.

The Pentagon has already sent bombers, stealth aircraft and ships.

South Korea's Yonhap news agency said the North had moved a mid-range Musudan missile to its east coast.

The missile is believed to have a range of 1,875 miles (3,000km) or more, which would put all of South Korea and Japan in range and possibly also the US territory of Guam in the Pacific Ocean.

North Korea is not believed to have tested these missiles, according to most independent experts.

Tensions have been soaring on the Korean peninsula since the North launched a long-range rocket in December and conducted its third nuclear test in February.

A military checkpoint linked to the Kaesong joint industrial complex

North Korea has threatened missile and nuclear strikes against the US and South Korea in response to UN sanctions and joint military drills.

US Defence Secretary Chuck Hagel said on Wednesday that North Korea's "bellicose, dangerous rhetoric" posed a "real and clear danger" to America and its allies South Korea and Japan.

"They have nuclear capacity now, they have missile delivery capacity now," he said.

"We take those threats seriously, we have to take those threats seriously.

"We are doing everything we can, working with the Chinese and others to defuse that situation on the peninsula.

"I hope the North will ratchet its very dangerous rhetoric down."

The tensions surrounding Kaesong - established in 2004 and a crucial source of hard currency for North Korea - carry enormous significance.

Neither of the Koreas has allowed previous crises to significantly affect the complex, which is the only surviving example of inter-Korean cooperation and seen as a bellwether for stability on the Korean peninsula.

China, the North's sole major ally, appealed for "calm" from all sides, repeating Beijing's oft-declared position.

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Derby Fire: Philpotts Face Jail Over Deaths

A couple, who killed their six children in a house fire, are due to be jailed after both were convicted of manslaughter.

Mick and Mairead Philpott triggered the blaze at their Derby home in the early hours of May 11 last year in a bid to frame Lisa Willis, Philpott's former girlfriend.

Philpott was fighting a custody battle with Miss Willis, who had lived with the couple and slept with Philpott on alternate nights while living at the house.

Both women were said to have lived happily with one another for a decade but Miss Willis left Philpott three months before the deadly fire taking her five children, four of whom were fathered by him.

Jade Philpott, 10, and her brothers John, nine, Jack, eight, Jesse, six, Jayden, five, and Duwayne, 13 - all died as a result of the petrol-fuelled blaze that tore through their three-bed council house in Victory Road.

Jurors at Nottingham Crown Court returned guilty verdicts on manslaughter charges for the pair and co-defendant Paul Mosley, 46, after an eight-week trial.

Many sobbed and hugged one another while Mairead Philpott's sister, Bernadette Duffy, clapped her hands and shouted out: "You murdering b*******.

"You heard me. I told you didn't I?"

Back (L-R) Duwayne and John, Front (L-R) Jack, Jessie, Jade and Jayden

Mick Philpott, 56, stood in the dock staring straight ahead with his hands clasped in front of him as the verdicts were delivered.

He shook his head and his wife looked down at the floor and fought back tears while clutching a tissue in both her hands.

Before leaving the dock Philpott crossed himself and was heard to say: "It's not over yet."

During his evidence he appeared emotional and slumped forward sobbing in the witness box as the court was played the frantic 999 call he and his wife made on the night of the fire.

The trio had planned to get all six children into one bedroom at the back of the house so Philpott could play the hero and rescue them with a ladder stationed in preparation.

Mick Philpott tried to frame his former partner over the blaze

Brothers Jamie and Darren Butler, who live on the same road as the Philpotts, described how the Philpotts did nothing to help rescue their children and stood like "a couple of statues".

Mick Philpott, who was known locally as Shameless Mick for his lifestyle, tried to frame his former partner over the blaze

He had previously told police that Miss Willis was harassing him and had threatened the family.

The fire was far bigger than the trio expected and unemployed Philpott - father of 17 children from five women - climbed up a ladder at the back of the house to discover he was unable to smash a large enough hole in the bedroom window.

Firefighters found the youngsters' lifeless bodies in each of the three upstairs bedrooms.

Yesterday Sky News revealed that Assistant Chief Constable Steve Cotterill of Derbyshire Police suspected Philpott as he watched his reactions during a news conference.

He said that officers had been surprised when Philpott wanted to speak to the media five days after fire.

Assistant Chief Constable Steve Cotterill's disbelief captured on camera

Mr Cotterill said his misgivings were betrayed in a single photograph, taken as he sat alongside Mick, and his wife Mairead.

He said: "In one particular photograph, what I saw there was a guy who was sat there pretending to cry and I've described it as a bit of a sham of a performance and I didn't believe that he was genuinely overcome by grief.

"I thought he was playing to the cameras."

Mr Cotterill said prior to the press conference Philpott seemed "overly excited by the prospect of going to face the media given what had taken place and given that he had lost six of his children in that fire".

He said that following the conference Philpott had "inappropriately" asked a family liaison officer to marry him and faked a faint.

It was a comment echoed by the mortuary manager at a Derby Royal Hospital, who said that Philpott had pretended to faint when he saw his children's bodies for the first time.

Philpott was keen to play out his 'grief' in front of the media

Marie Smith, said that Philpott also asked for alcohol and engaged in horseplay with a police liaison officer days after the tragedy while bemused staff looked on.

She said that Philpott had apparently fainted and did not respond to her attempts to bring him round until she threatened to call for medical assistance.

She said: "He still didn't respond so I instructed a member of staff to call a doctor for assistance and as soon as I said, he woke up, he recovered very, very quickly ..."

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South Korea Warns Military Action An 'Option'

South Korea has said that military action is an "option" to protect its citizens in its stand off with North Korea.

The news comes as the United States has said it will "not accept" North Korea as a nuclear state, after Pyongyang raised tensions by refusing the South entry to a joint industrial complex.

The North says it will restart all nuclear facilities including its mothballed Yongbyon reactor, which is able to produce bomb-grade plutonium.

Standing firm: Kerry stated he will not accept N Korea as a nuclear state

North Korean leader Kim Jong-Un insisted it was only seeking a deterrent and did not repeat recent threats to attack South Korea and the US.

But the North delayed the daily opening of its Kaesong industrial zone with South Korea on Wednesday morning, in a move that could represent a sharp escalation of tensions between the two countries.

The North had previously threatened to close the joint complex as part of a stand-off with Washington and Seoul.

"We are waiting for access from the North Korean authorities," a Unification Ministry official said.

More than an hour after the time the daily entry clearance is normally granted, the ministry said 861 South Korean workers were in the industrial complex while 179 workers awaited access.

The complex is a rare lucrative source of income for the impoverished North since it was established as a form of joint-Korean cooperation in 2002.

Sky News Asia Correspondent Mark Stone said the site was the only place where relations between the two countries existed.

"As with everything, it's hard to know whether this is more game playing or whether they plan to keep it closed for a while," he said.

"But a number of analysts who have studied the Korean problem for some time said last week that while the park remained open, the situation was not overly worrying. Now it appears to be shut."

Vehicles wait to cross the border to the Kaesong complex

Both Washington and Seoul stressed their countries' military readiness and said de-nuclearisation was the only way forward for North Korea.

US Secretary of State John Kerry said: "What Kim Jong-Un has been choosing to do is provocative, it is dangerous, reckless and the United States will not accept (North Korea) as a nuclear state."

America's deployment of advanced aircraft and warships to South Korea was a signal that "the United States will defend our allies and that we will not be subject to irrational or reckless provocation," he said.

The parading of US air and naval power with nuclear capability within view of the Korean peninsula, is as much about psychological war as real war.

South Korean trucks return after they were refused entry to the facility

The US is keen to discourage North Korea's unpredictable leader from starting a fight that could get out of control.

Mr Kerry, who will visit South Korea next week, reminded the North Koreans that "they have an option, and that option is to enter into negotiations for de-nuclearisation ... and to begin to focus on the needs of their people".

Meanwhile, China has expressed "serious concern" over the escalating situation on the Korean peninsula.

An official from China's Foreign Ministry met ambassadors from the US, North Korea and South Korea, following the closing of Kaesong.

China hopes the differences can be resolved through talks and diplomacy, said Foreign Ministry spokesman Hong Lei.

South Korean soldiers in drills near the zone separating the two Koreas

United Nations Secretary General Ban Ki-moon appealed for dialogue and negotiation to resolve the crisis.

"Nuclear threats are not a game," he said.

"Aggressive rhetoric and military posturing only result in counter-actions, and fuel fear and instability."

A speech by the North's young leader, Kim Jong-Un, given on Sunday but published in full by the Korean Central News Agency on Tuesday, appeared to dampen any prospect of a direct confrontation with the US by emphasising that nuclear weapons would ensure the country's safety as a deterrent.

"Our nuclear strength is a reliable war deterrent and a guarantee to protect our sovereignty," Mr Kim said.

"It is on the basis of a strong nuclear strength that peace and prosperity can exist and so can the happiness of people's lives."

The crisis flared after Pyongyang was hit with US sanctions for conducting a third nuclear test in February, before America and South Korea staged military drills that North Korea viewed as "hostile".

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North Korea To Restart Nuclear Reactor

North Korea will restart all nuclear facilities including its shuttered Yongbyon reactor, the official KCNA news service has said.

It will rebuild and resume its mothballed uranium enrichment facility and the 5 MW Yongbyon reactor, which was closed in 2007 as part of international disarmament talks that have since stalled.

When it is fully running the reactor is capable of churning out one atomic bomb worth of plutonium - the most common fuel in nuclear weapons - a year.

A nuclear energy spokesman said the move was being made in line with a policy of "bolstering the nuclear armed force both in quality and quantity" as well as solving "acute" electricity shortages.

Kim Jong-Un has said the North is at war with South Korea

But the step will boost fears in Washington and among its allies about North Korea's push for nuclear-tipped missiles that can reach the US, technology it is not currently believed to have.

The North's leader Kim Jong-Un has been issuing daily war-like threats in recent weeks, including one to launch missile attacks on American targets in the region. He also claims the North is in a "state of war" with South Korea.

Pyongyang conducted its third nuclear test in February, prompting UN sanctions that have angered its leaders and led to the current tensions.

The country has since declared that making nuclear arms and a stronger economy are the nation's top priorities.

The country added the 5 MW graphite-moderated Yongbyon reactor to its nuclear complex in 1986 after seven years of construction, adding the operation is aimed at generating electricity.

It takes about 8,000 fuel rods to run the reactor. Reprocessing the spent fuel rods after a year of reactor operation could yield about seven kilogrammes of plutonium - enough to make at least one nuclear bomb, experts say.

North Korea began building a 50 MW and a 200 MW reactor in 1984, but their construction was suspended under a 1994 nuclear deal with Washington.

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Windermere Lake Deaths: Woman And Girl Die

A 36-year-old woman and a 10-year-old girl have died and a man is being treated in hospital after they suffered breathing difficulties on a boat.

The alarm was raised at around 4pm when Cumbria Police and an ambulance were called to a private vessel at a jetty on Lake Windermere in the Lake District.

The woman and young girl, both from the Leyland area of Lancashire, were treated at the scene and then airlifted to Royal Lancaster Infirmary, where both later died.

The man, who was also on the boat near Bowness, was taken to the same hospital where he is still receiving treatment, Cumbria Police said.

Officers said they were unable to confirm reports that the deaths were the result of carbon monoxide poisoning.

A Cumbria Police spokeswoman said: "(We) can confirm that at approximately 4pm today (Monday), they attended an incident at Lake Windermere, where it was reported that three people on a private boat on Lake Windermere were having serious breathing difficulties.

"Police attended along with an ambulance crew.

"A 36-year-old woman and a 10-year-old girl, both from the Leyland area, were treated at the scene and then airlifted to Royal Lancaster Infirmary. Unfortunately both have since tragically died.

"A man, who was also on the boat, is still receiving treatment at the Royal Lancaster Infirmary."

The spokeswoman continued: "Police are currently investigating the circumstances of this tragic incident and trying to establish the full facts about what has happened. The coroner has been informed."

The incident was witnessed by businessman and star of the television programme The Dragon's Den, Duncan Bannatyne, who posted a photograph of the scene on Twitter, saying: "Tragic accident over there I am afraid."

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Welfare Reforms 'Will Make Benefits Fairer'

The Government is beginning the biggest shake-up in the history of the Welfare State with the introduction of a raft of reforms which it says will make the benefits system "fairer".

Chancellor George Osborne and Work and Pensions Secretary Iain Duncan Smith have dismissed criticism that they say make the shake-up sound like "the beginning of the end of the world".

They launched their fightback as 660,000 social housing tenants with a spare room began to lose an average £14 a week in what critics have dubbed a "bedroom tax".

It is part of a package of welfare and tax changes coming into force this month which critics claim will hit poor families and the disabled especially hard.

Changes to council tax benefit will see bills for an estimated 2.4 million households rise an average £138 a year with two million paying for the first time, an anti-poverty group said.

The system has been handed to town halls to operate from today but with 10% less funding.

On April 6, working-age benefits and tax credits will be cut in real terms with the first of three years of maximum 1% rises - well below the present rate of inflation.

On April 8, disability living allowance begins to be replaced by the personal independence payment (PIP), which charities say will remove support from many in real need.

And later in the month, trials begin in four London boroughs of a £500-a-week cap on any household's benefits and of the new Universal Credit system.

George Osborne says the benefits system will now be 'fairer' for all

Pilots for the flagship scheme have been scaled back amid reports - denied by welfare officials - that IT problems have derailed preparations for its rollout from October.

Labour claims the impact of the measures and other coalition policies have left the average family almost £900 a year worse off.

A coalition of churches has said vulnerable people are paying a "disproportionate price" for the Government's austerity drive and attacked its whole approach.

Writing in The Daily Telegraph on Monday, Mr Osborne and Mr Duncan Smith said: "Our changes will ensure that the welfare state offers the right help to those who need it, and is fair to those who pay for it."

Ending what ministers call a "spare room subsidy" will address the "scandal" of a million people living in overcrowded conditions and millions more on waiting lists, they said.

The three-year, real-terms cut was a hard but "necessary" decision to save the taxpayer £2bn a year as part of austerity deficit-reduction measures, they wrote.

And raising the personal income tax allowance to £10,000 in two phases starting at the start of the financial year on Saturday was "the biggest tax cut in a generation".

"What we're doing this coming week is making welfare fairer, helping to create jobs, and making sure you can keep more of what you earn."

Conservative Party chairman Grant Shapps has faced scorn after using the fact that his own two sons shared a room in justifying the "common sense" spare room crackdown.

Mr Shapps has defended his plans for children to share bedrooms

Speaking to Sky News, Mr Shapps said: "It is wrong to leave people out in the cold with effectively no roof over their heads because the taxpayer is paying for rooms which aren't in use.

"It's just a common-sense reform which in the end will help house more people. People share rooms quite commonly - my boys share a room."

Sky's political correspondent Sophy Ridge said his comments provoked jibes and criticism from Labour MPs and others on Twitter.

"The problem is the debate over welfare has become so politically charged, emotional even, that some Labour MPs are saying it is not appropriate for Mr Shapps, who is a millionaire, to compare themselves with people on low paid jobs for instance," she said.

Labour said freedom of information responses showed local councils had sufficient one and two-bedroom properties to house only one in 20 of those families with spare rooms.

Responses from 37 authorities across Britain revealed 96,041 households faced losing benefit but there were only 3,688 smaller homes available.

Shadow work and pensions secretary Liam Byrne said: "These shocking new figures reveal the big lie behind this Government's cruel bedroom tax.

"They say it's not a tax but 96% of people have nowhere to move to. In the same week that millionaires get a huge tax cut, hundreds of thousands of vulnerable people will be hit by a vicious tax they can't escape.

"This wicked bedroom tax is going to rip neighbour from neighbour, force vulnerable people to food banks and loan sharks, and end up costing Britain more than it saves as tenants are forced to go homeless or move into the expensive private rented sector."

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David Miliband Quits Sunderland Over Di Canio

South Shields MP David Miliband has resigned as Sunderland FC vice-chairman over the appointment of new manager Paolo Di Canio.

The former foreign secretary, who was also a non-executive director of the club, said he had made the decision due to the Italian's "past political statements".

In a statement on his website, he said: "I wish Sunderland AFC all success in the future. It is a great institution that does a huge amount for the North East and I wish the team very well over the next vital seven games.

"However, in the light of the new manager's past political statements, I think it right to step down."

Di Canio is a controversial figure who has previously admitted to being a fascist and has been photographed several times making a so-called Roman salute while playing for Italian club Lazio.

After making the salute against Livorno he received a one match ban and a several thousand euro fine.

In 2005, he told the Italian news agency ANSA: "I am a fascist, not a racist."

When he joined Swindon Town in 2011, the GMB union reportedly cut its sponsorship deal with the club in protest over Di Canio's views.

The 44-year-old joined Sunderland on a two-and-a-half year deal on Sunday after Martin O'Neill was sacked by the struggling Premier League side.

He left Swindon Town in February, having guided them to promotion from League Two in his first managerial role.

Sunderland's American chairman Ellis Short said: "Paolo is hugely enthused by the challenge that lies ahead of him. He is passionate, driven and raring to get started.

"The sole focus of everyone for the next seven games will be to ensure we gain enough points to maintain our top-flight status. I think that the chances of that are greatly increased with Paolo joining us."

Mr Miliband recently announced he would be leaving British politics to take up a job with a charity in New York, saying it was the right move to allow the Labour party to progress under the leadership of his brother Ed.

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Plebgate: Mitchell's Scotland Yard Complaint

Ex-cabinet minister Andrew Mitchell has lodged a formal complaint against Scotland Yard over the apparent leaking of its report into the "Plebgate" affair.

The senior Tory MP has written to the Independent Police Complaints Commission (IPCC) accusing the Metropolitan Police of a continued campaign to "destroy" his career.

Mr Mitchell took the action after newspaper reports suggested a police file passed to the Crown Prosecution Service contained no evidence that officers lied about his behaviour.

He strongly denies calling officers "plebs" during an altercation over their refusal to allow him to ride his bike through the Downing Street gates last year.

And the politician - who quit as chief whip amid the storm over the incident - claims he is the victim of a conspiracy by officers to "toxify" the Tories and blacken his name.

In a letter to IPCC deputy chairman Deborah Glass, he wrote: "We are deeply dismayed that the Metropolitan Police appear to have leaked part of their Report prepared for the Crown Prosecution Service (CPS) to certain members of the Press and spun it to the advantage of the Police officers involved.

"This was an Enquiry into a dishonest and illicit attempt to blacken my name and destroy my career. It would appear that this police enquiry continues precisely that process."

Keith Vaz, Labour chairman of the Commons home affairs committee, said the latest development showed it was wrong for Scotland Yard to lead the inquiry into its own officers and called for the whole investigation to be taken over by the IPCC.

Scotland Yard is trying to find out how the Sun and Daily Telegraph obtained information about the "Plebgate" row and if it came from police.

It is also looking at a police officer's claim to have witnessed the altercation and allegations by Mr Mitchell that police had lied in a log of the event.

Three officers from the Diplomatic Protection Group have so far been arrested as part of the investigation. All three remain suspended.

Some 30 detectives have taken statements from all 800 officers in the DPG, which is tasked with protecting government officials.

Papers related to the case were passed to prosecutors on Thursday, but the CPS said it was not "a full file of evidence" and that is expected more.

"We now await the conclusion of the police investigation before considering charges," it said in what was seen as a rebuke to the force.

A number of newspapers subsequently reported sources as saying the file did not contain any evidence to back Mr Mitchell's claim of a conspiracy by officers.

Mr Vaz said the committee had argued from the start that Met Police Commissioner Sir Bernard Hogan Howe was wrong to allow Scotland Yard to conduct the investigation.

Britain's most senior police officer promised a "ruthless" investigation into the alleged conspiracy "no matter where the truth takes us".

It is being supervised by the IPCC and the commissioner invited the Greater Manchester force to provide an external review.

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Benefits Shake-Up 'To Cost Families Hundreds'

By Tadhg Enright, Sky Reporter

Changes to the welfare system will cost the average family £891 over the next year, according to research by Labour and the Institute for Fiscal Studies.

The Conservatives have responded by saying the biggest shake-up of the welfare state in history has already had an effect with a third of those claiming incapacity benefit giving it up to avoid a medical to prove their entitlement.

From Monday, millions of low income families will see an increase in their council tax bills.

The so-called bedroom tax will see extra charges levied on council house tenants with more bedrooms than they need.

And from next Saturday, the annual increase in tax credits and other working-age benefits will be cut to just 1%, well below the rate of inflation.

The personal income tax allowance for those aged under 65 will rise to £9,440 but the higher rate threshold will fall to £41,450.

Shadow chancellor Ed Balls says millions of families will lose out

The top rate of income tax will also fall from 50p to 45p which Labour claims will shave £100,000 off the annual tax bills of 13,000 people who earn more than £1m a year.

Shadow chancellor Ed Balls said: "These shocking figures show the huge hit millions of families are facing at the very same time as David Cameron and George Osborne are giving millionaires an average £100,000 tax cut.

"And while Ministers trumpet the small rise in the income tax personal allowance, they should admit that it is hugely outweighed by things like cuts to tax credits and child benefit, higher VAT, the bedroom tax and the granny tax.

"They are giving with one hand, but taking away much more with the other."

Mum-of-two Emma Kingsbury is one of 660,000 council house tenants who will have to pay the so-called "bedroom tax" because she only needs two of the three bedrooms in her home,

She told Sky News: "I've only ever needed two bedrooms and now, after placing us in this three bedroom when I didn't need or ask for it, they want us to pay for this room that we rarely use."

The bedroom tax will cost Emma and her boys £15 a week.

The 'bedroom tax' has prompted a number of protests

"The boys will have to stop some of their extra curricular activities, outings for Easter," she said.

"They haven't given anybody any time to try and downsize. I've had a month."

The Government insists it is vital to break the cycle of dependency on benefits and has claimed that welfare reforms have already succeeded in reducing spurious claims.

Out of 1.44 million medical assessments carried out on claimants of incapacity benefit, 837,000 were found to be fit enough to return to work.

A further 878,300 chose to give up their benefit instead of facing a medical to prove their entitlement.

Conservative party chairman Grant Shapps said: "Welfare makes up a third of this country's spending - so it's our job to make sure it's getting to the people who really need it.

"Our reforms are about freeing people from a system of dependency that's trapped them and their families for decades - and people are getting back into work as a result.

"These figures demonstrate how the welfare system was broken under Labour and why our reforms are so important."

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