Families in Epsom and Ewell will be an average of £91 a month worse off following Government cuts to the local housing allowance, a homelessness charity has warned.

Shelter commissioned research that estimated 134,000 households across the country will be evicted or forced to move when austerity measures kick in, because they will be unable to negotiate cheaper rents from their landlords.

It claimed that about 35,000 homes in England will approach their councils for housing assistance, which could cost the Government up to £120m a year.

Campbell Robb, chief executive of Shelter, said: “Shelter’s research clearly shows that these cuts will mean households in Epsom and Ewell are going to face a real struggle keeping a roof over their head. Unfortunately, an increase in homelessness is inevitable.

“That’s why Epsom and Ewell Council needs to start planning now to ensure their homelessness services can cope with the demand they are going to face.

“We urge Epsom and Ewell Council to set aside resources to ensure the most vulnerable, including children, pensioners and the disabled are protected from these cuts.”