The number of homeless families in Islington has jumped five per cent in the last year, a new report warns.

In total, there were 947 households without a home to call their own in July, up from 900 in March 2011, according to Islington Council’s statement of finance, which was presented at last week’s meeting of the executive.

The report also predicts the number will reach 976 by the end of 2012.

– most of which is blamed on the Government’s new housing benefit cap.

Town Hall has a duty to provide temporary accommodation for these families, and the cost this year is �2.5million.

And with more government cuts on the horizon, Islington’s finance chief warns that things are only going to get worse.

Cllr Richard Greening, Islington Council’s executive member for finance, said: “Grant Shapps became housing minister and said homelessness would be his greatest achievement – and it’s on the rise already.

“We will do what we can to rehouse people, but the fact is these benefit cuts by the government are resulting in homelessness.

“There are more cuts scheduled for April and previous cuts are beginning to bite now. As the screw tightens we will see more and more of in impact.

“It’s going to create very serious pressure on our budget and the money has got to come from somewhere. Something’s got to give.”