A hardship fund set up to support welfare claimants struggling to pay rent after the Tories’ housing benefit reforms is being cut by nearly a quarter.
Councils have been told that the budget for so-called discretionary housing payments will plummet from £165million to £125million from April.
Campaigners said reducing the funding would mean cutting the “parachute cord” for the most vulnerable families hit by the bedroom tax and the £26,000 annual benefit cap.
Child Poverty Action Group chief executive Alison Garnham said: “Discretionary housing payments have protected many families with children against some of the worst pain from severe benefit cuts and harsher eligibility rules.
“The need for them, among working and non-working families, has been – and remains – acute.
“Children have been hit hardest by benefit cuts and reducing DHP funding now will cut the parachute cord for the most vulnerable families.”