The town’s MP is calling on the Government to “close the loophole” which allowed GAP Property to serve “pre-emptive” eviction notices on hundreds of its tenants.

Melanie Onn , MP for Great Grimsby, slammed the company’s move, branding it “an outrageous way to treat people”.

She said it had left GAP Property’s 350 tenants “stressed and worried about their futures”.

As reported, the Grimsby-based housing management company wrote to all its tenants warning them they faced being turfed out of their homes if they were late paying their rent due to universal credit delays.

The letter, which was highlighted by Labour leader Jeremy Corbyn during Prime Minister’s Questions this week, gave tenants early warning of their two-month eviction notice, meaning residents could be made homeless in mid-January if they are late paying rent.

Melanie Onn, MP for Great Grimsby says the eviction noticed left tenants 'worried about their future'

Universal credit – the Government’s benefit reform which will merge six benefits into a single-monthly payment – is due to be rolled out in North East Lincolnshire on December 13, with at least 13,000 people in Grimsby set to be switched over in the coming months.

New applicants will have to wait a minimum of six weeks for their first payment but claimants in areas where the scheme was first trialled experienced waits as long as three months in some cases.

Ms Onn, Labour’s housing spokeswoman, said she had been advised that GAP Property had not acted unlawfully – much to the consternation of Labour and Tory MPs.

She put pressure on the Government, during a speech in Parliament, to change the law to prevent other tenants from receiving similar letters.

“Despite the very clear moral questions around this action, I am advised that it remains a lawful way of operating,” said Ms Onn, speaking in a universal credit debate on Thursday.

James Blake was one of the Grimsby tenants served with an eviction notice by Gap Property ahead of the start of the new universal credit

“It is completely legitimate – nothing prohibits it. Even if it were illegal, many of these people would not have the capabilities to seek legal redress. That is a real issue.

“I really hope that the Government will look at closing this loophole in future,” said the shadow housing minister.

Guy Piggot, director of GAP Property, has said he “had no other choice” but to send the letter, complaining his “business could go bust” if the majority of his tenants claiming housing benefit went into rent arrears at the same time.

However, Ms Onn said she was “really disappointed” that the Prime Minister had not condemned the letter when she was made aware of it by Mr Corbyn.

While Employment Minister, Damian Hinds, did not comment on the eviction notices, other Tory backbenchers also criticised the move during the debate.

Vicky Ford, MP for Chelmsford, told Ms Onn: “A number of us on the Conservative benches would like to join her in condemning that letter, which we believe is illegal.”

GAP Property sent a 'preemptive' letter to universal credit tenants warning they could be evicted

MP Ms Onn implored the Government to “press pause” on the roll-out of universal credit.

“I am really concerned that people in my town will pay a heavy price if the system does not work,” she said.

“I am pleading with the Government today to listen – press pause on the roll-out and get this right before moving ahead.​”

Martin Vickers , MP for Cleethorpes, told the Telegraph he has spoken to a “senior regional manager” at the Department for Work and Pensions to talk about universal credit’s incoming implementation.

“I have been given assurances that they feel on top of it,” said Mr Vickers.

“Provided applicants make the deadline they’ve been given, they [the DWP] feel they will be able to handle it.”

A group of Tory rebels are currently in talks with the DWP and Downing Street in an attempt to get the six-week wait for first payment reduced to four-weeks.