In April, 5,000 households will be given nine months to either lose housing benefit and find the extra or move out of their homes.
It will affect households who pay the average rent in their area, as housing benefit will only cover the cost of accommodation in the bottom third of rental prices.
According to the Scottish Government, the changes will make it harder to meet its targets for reducing homelessness and that as many as 7,500 people aged between 25 and 34 could be forced from their flats into shared accommodation because of the limits on housing benefits.
In Dundee and Angus, people in that age bracket who receive housing benefit for a one-bedroom flat will see their allowance drop from £80.77 to £54.23 — a fall of £26.54.
In Fife, the drop will be £28.85 as the allowance for a one-bedroom flat falls from £84.23 to £55.38.
Those in Perth and Kinross will suffer even more — allowances will fall from £87.69 to £54.23, a drop of £33.46.
The UK Government has discussed plans to cap housing benefit for tenants in private accommodation from 2013 in a bid to slash £2bn from the annual £21bn bill.
In the coming weeks, it is set to publish a Welfare Reform Bill which is expected to propose further extensive cuts and changes to welfare and benefits.
The Scottish Government has announced that an expert group will be established in response to the impending and proposed changes.
It is also calling for powers on welfare and benefit payments to be devolved to protect Scottish people from the coalition government’s cut.
Alex Neil, Scottish housing minister said: “The veil has been lifted off the UK government’s reckless and ill-thought-through policies.
“We have exposed that thousands of families and elderly people in Scotland are going to feel the full force of savage cuts by the UK government, on top of the rises in VAT and inflation.
“There needs to be welfare reform but these measures are penalising the very people we should be protecting.”
He added: “It’s slash and burn economic policy — cutting too fast, too far and too quick and will force people out of their homes.”
Neil said the Scottish government is to set up a working group comprising members of the Scottish Parliament, local authorities and third sector groups to put forward a case against the cuts.
“In Scotland, we will be working with our third sector groups and local government to ensure we can continue to take the strongest possible case to the UK government to think again,” he said.
“We will also be protecting household budgets with innovative homegrown policies such as school clothing grants, freezing council tax, free heating help and abolishing prescription charges.”
