The amount the government will pay to house large families in private accomodation will be capped in April.

A report out today revealed the taxpayer pays £2.4m to house 16 families in the capital alone, with an annual bill of more than £4bn.

The inquiry was started by Work and Pensions Secretary James Purnell after it was revealed a family of Afghani refugees were being housed in a seven-bed home in Acton at a cost of £2,875 per week.

The cap on the local housing allowance, paid by central government, will stop people renting houses larger than five bedrooms, and until April the DWP will keep an eye on the applications being pushed through.

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