A government document leaked to The Observer shows ministers'​ concerns that up to 40,000 families could become homeless as a result of Tory welfare reforms.

According to the newspaper, the office of Communities Secretary, Eric Pickles, has warned PM David Cameron that plans, announced at last year'​s Tory party conference, to limit weekly income to £​500, will cost more than they save if implemented.

Channel 4 News quotes Nick Heslop, Pickle'​s private secretary, as saying: "​We are concerned that the savings from this measure, currently estimated at £​270 million from 2014-2015, does not take account of the additional costs to local authorities (through homelessness and temporary accommodation). In fact we think it is likely that the policy as it stands will generate a net cost."​

The two reports indicate that up to half of the 56,000 new affordable homes planned over the next 4 years may never even be built because developers won'​t be able to recoup even four-fifths of market value from tenants.

You can view the TV report by BBC political correspondent Gary O'​Donoghue on the BBC News website.

It'​s the latest controversy over coalition plans to make cutbacks to the welfare state and comes just a week after the news that a man with mental health difficulties took his own life whilst jobseeking -- having left a suicide note explaining his concerns about the impact of benefits cuts.


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