Changes to the "homelessness duty" will mean councils can offer people private sector accommodation instead of being obliged to offer social housing.

BBC: At-a-glance: Localism Bill

Mr Forbes claimed the changes would not make the predicted savings because "the logical economic choice for a tenant who's getting the bedroom tax imposed on them is to move to more expensive, smaller private sector accommodation".

BBC: MPs debate impact of 'bedroom tax' changes in Wales

Mr Blackwood said the legislation would marginalise those on low incomes who will find it hard to get accommodation in the private rental sector.

BBC: Fears private rents could rise by up to ?25 a month