Tory-run councils are top of the list for local authorities using bed and breakfasts to house homeless families beyond the legal time limit, with such incidences increasing ninefold since the Con-Dems came to power.
New figures today exposed the 800 per cent increase and revealed over a third of the country's councils are unlawfully placing adults and children in B&Bs for more than six weeks.
Freedom of information requests by Labour to England's 325 councils - with 242 responding - showed that 125 authorities had resorted to putting destitute families in hotel rooms for six weeks or more since April 2010.
The information blows out of the water claims by ministers that only a small number of town halls put families in bed and breakfast accommodation beyond the legal limit.
Charities say that the reason for the ninefold increase is a combination of welfare cuts and lack of affordable social housing - and even the councils themselves have had to admit it.
Taxpayers have to cough up for homeless families staying in hotels and guest houses, which is meant to be a short-term solution to their problems while they wait to get the keys to council properties.
Of the 125 local authorities that responded to Labour's requests over half - 54 per cent - were Tory-run, with 35 per cent Labour.
Last week it came to light that the Tory flagship London borough of Westminster is spending almost £85,000 a week housing families in 10 West End hotels.
The council was forking out £22,500 a week to the Central Park hotel and more than £17,000 a week to the Copthorne Tara hotel in Kensington.
Labour shadow housing minister Jack Dromey said: "The government's housing and economic policies are failing and families with children are paying the price.
"Affordable house building has collapsed, rents are soaring and their ill-thought-through benefit changes are driving up homelessness.
"But the government's policies are not just causing desperate hardship for those affected, they're costing taxpayers millions of pounds every week."
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