Plans aren't underway, their was an online petition thing that reached the required number of votes for it to be discussed in parliament is all. It will be discussed, but ministers have made it quite clear that courts will have the final say.
Whilst it is true that some rioters have been issued eviction notices, this comes under a completely different social housing clause that the people signed before they recieved the housing. Basically, if a family is moved onto a housing estate and members of that family have criminal records already, they sign an agreement stating that they accept that their keeping the housing relies entirely on them maintaining the peace.
As for benefit cuts, it's a silly idea for two reasons, first it assume that everyone who looted was on benefits, secondly, all it would do is create excuses for more theft. I could understand them losing a small fraction per payment to go towards compensation, however, that system is already in place for criminals who recieve benefits.