MINISTERS could slash housing benefit costs by £3 billion a year by moving all families with children on means-tested benefits into social housing, researchers say.

Much of the £32 billion currently spent by the government on housing support lines the pockets of private landlords, a report published today said.

New modelling by the Institute for Public Policy think tank found that moving these families would also reduce relative poverty by 200,000, while also helping to contain the ballooning cost of temporary accommodation.