The number of working people receiving housing benefit has soared by 86% since 2009, according to the National Housing Federation.

In a report published today, the organisation said 417,830 more working people now need housing benefit to help meet the rising costs of renting.

According to the federation, the cost of privately renting a home has increased by 37% in the past five years and looks set to rise by a further 35% over the next six years.

‘We now have millions of families struggling to keep on top of their rents, priced out of the housing market and nearly 10,000 more working families every month are now reliant on housing benefit to help pay their private rent,' said federation chief executive, David Orr.

‘These people are the strivers the Government wants to help, yet their future is looking bleak,' he added.

‘This cannot continue; we need action now to address the causes of rising housing costs, not just the symptoms. Only by addressing the chronic undersupply of new homes can we stem the financial pressure on families and Government.'