Two-thirds of councils say welfare reforms have made homelessness worse and 87% are struggling to support young homeless people, a report has found.

The study, by Crisis and the Joseph Rowntree Foundation, also found more than half of local authorities would like to see England follow Wales’ lead and expand prevention to all those in need.

The current system is geared to help those deemed a priority, such as families, said the report.

Jon Sparkes, chief executive of Crisis, said: ‘It’s a critical time for homelessness in England. Councils up and down the country are struggling to help single homeless people and fear that recent welfare reforms are likely to make the problem worse. On top of the desperate human tragedy, this will be incredibly expensive for the public purse as local services are forced to pick up the pieces.’

He said the Government had a ‘unique opportunity to act’ by ushering in new legislation.

Julia Unwin, chief executive of the JRF said: ‘A chronic lack of security in the private rented sector is putting more and more families at risk of homelessness. ‘In 2014 there were 16,000 households in England who were accepted as homeless after a private tenancy ended, four times more than in 2010.’

She urged local authorities, housing providers and Government to work closely together to increase the number of homes available ‘across all tenures’.

Professor Suzanne Fitzpatrick, lead author of the report, said: ‘The loss of a private tenancy is now the leading cause of homelessness in England, while recent housing and welfare changes could make it even harder for low income households to find a place to live. Faced with these developments, we have to ask, “who will house the poorest?”

‘As this report shows, councils across England are already struggling to help single homeless people and report that welfare cuts are fuelling the problem. The majority agree that we need a change in the law to expand homelessness prevention, and such a move could represent a major step forwards.

‘Nevertheless, without action to ease access to housing for those supported by benefits, it’s hard to see how councils will cope if homelessness continues to rise.’