FIVE hundred Birmingham families who receive up to £1,150 every month to privately rent five-bedroom homes will have their benefits capped under a government crackdown.

The city council is currently paying towards the rent of 28,000 private tenants who are on welfare benefits.

The Birmingham Mail has learned that the highest claimants have been handed cash to rent houses with at least five bedrooms in Small Heath, Sparkbrook, Northfield, Perry Barr and Sutton Coldfield.

New Department for Work and Pension caps are set to be introduced from next month.

Housing allowance for privately-rented homes for those on benefits will be capped at £700 for a maximum of four-bedrooms.

Rent for a two-bed house in the city will be capped at £500.

City mother Gabriella Sinclair has hit out at the plans after claiming her own housing benefit was cut completely because of an alleged administrative error.

The mum-of-three is awaiting the result of her appeal and is currently on maternity leave from her job as a nursery cook.

She rents a two-bedroom maisonette in Ladywood for £600 per month and has been receiving £485 from the city council. She has had to make up the remaining £115 herself.

Gabriella, aged 21, said: “I have been on the council house list since 2006 and I have never been offered a council property. There is simply not enough of them.