The cost of living crisis could have a ‘catastrophic' impact on homelessness and should be treated with the same level of urgency as the pandemic, Prime Minister Liz Truss has been told.

A new report from the Kerslake Commission on Homelessness and Rough Sleeping called for the reintroduction of a temporary ban on evictions and for an immediate increase in the benefit cap in response to rising inflation.

Commission chair Lord Kerslake said: ‘We, once again, need to see the strong, decisive leadership from the Government we did during Everyone In, backed by resources and funding.

'But this time the focus must be two pronged.

'It is no longer just about getting people off the streets - it is about ensuring people who are currently at risk of homelessness don't end up on them.

‘Failure to act could see this become a homelessness as well as an economic crisis and the results could be catastrophic; with all the good achieved in reducing street homelessness since the pandemic lost and any hope of the Government meeting its manifesto pledge to end rough sleeping by 2024 gone.'

Chief executive of charity Homeless Link, Rick Henderson, a member of the Kerslake Commission, added: 'While action on energy bills is welcome this is not the only pressure and, without further Government action, we are headed for a fresh homelessness emergency.'

A Government spokesperson said: ‘We are giving councils £316m this year to ensure families are not left without a roof over their heads.

‘This is alongside the action we are taking to support families with the cost of living this winter through our £37bn support package.'