The government is giving £10 million to councils in London to help households affected by housing benefit reforms.
The money can be used to provide financial advice, renegotiate rents and help people move to more affordable accommodation if necessary.
Housing minister Grant Shapps also confirmed £750,000 to support the ‘No second night out’ rough sleeper project in the capital, which aims to stop 80 per cent of rough sleepers spending a second night on the streets by next year.
A further £1.5 million has been made available nationally for charities to help single homeless people access the private rented sector. This funding is on top of measures in the spending review.
This set funding for the Supporting People programme, which helps homeless people, victims of domestic violence and the elderly, at £6.5 billion over the next four years.
Mr Shapps said: ‘It is vital to Britain’s economic future that we tackle the record budget deficit that we inherited but we must also ensure that the most vulnerable in our society are protected.’