Housing the homeless is costing Harrow Council increasing amounts - and Government benefit cuts are to blame, according to its chief housing officer.

More than £1million each year is spent by the authority putting up families without a place to live in bed and breakfasts, hotels and temporary housing.

Harrow has more than 4,000 people on its waiting list for social housing and is struggling to cope with the demand as it does not have enough spare properties available.

Lynne Pennington, the council’s housing director, wrote in a report submitted to the authority's performance and finance scrutiny sub-committee on Tuesday: “The majority of potentially homeless households have always been assisted to avoid becoming statutorily homeless.

“We achieve this by either resolving issues so they can stay in their current accommodation, or by assisting them to obtain alternative private rented accommodation.”

Department for Work and Pensions data shows the benefit cap introduced by the Coalition Government last year - limiting the amount recipients can receive in state handouts - has hit 323 households, who have had their benefits curbed to the maximum sum, putting pressure on outgoings such as groceries, transport and particularly rent.

Mrs Pennington said in the report: “Welfare reform has made homelessness prevention far more difficult.”

Towards the end of last year, the number of people being put up in bed and breakfasts soared.

In April, 57 rooms were being paid for by Harrow Council, but by July the figure was 82, and by December 115 rooms were being temporarily rented by Harrow Council.

There are fears the situation could escalate further after the council conceded in the sub-committee report will not meet its target of obtaining 350 privately rented homes for subsidised housing across 2013 and 2014.

Housing campaigner and Labour backbench councillor Ben Wealthy said: “It's clear that the government's welfare cuts are causing significant homelessness in Harrow – for most people this is a moral disgrace.

“Harrow Council should commit to ending the use of bed and breakfast accommodation in the upcoming budget.

“We have a Tory council saying they believe in fairness, and this is a test of whether they'll take action or just walk by on the other side.”