RISHI SUNAK has been forced to admit that public-sector workers are not paid enough to rent so-called affordable homes.

The Prime Minister made the admission while being grilled by senior MPs over the cost-of-living pressures and the state of public services by the liaison committee.

Clive Betts, the Labour chair of the levelling-up committee, asked him: “Many people, of course, can’t afford a home, there’s no social housing to rent, end up in the private sector.

“Since 2020, the local housing allowance which helps the poorest families pay for the rent in the private rented sector has been frozen yet at the same time rents in the private sector have risen by 25 per cent.

“There’s now only one in 20 homes that are covered by the local housing allowance — how is it fair for government policy to impact so severely on the poorest families who no longer can pay for the rent?”

Replying that “it was frozen at a level that was significantly higher than it was before,” the PM claimed new “affordable homes” would help keep rents down.

Mr Betts continued: “But affordable homes are 80 per cent of market rates — they are not affordable to those people on the lowest incomes.

“In public service, workers: nurses, police and others can’t afford affordable rates in London — 80 per cent of market rates are just not in their remit.”

The PM said: “Yes, which is why we have taken huge steps to help people with their energy bills.

“What I will say is because of the support we have put in place, it’s actually disproportionately benefitting the most vulnerable families.”

Social sector units with rents of up to 80 per cent of market rents were introduced in 2011.

Harriett Baldwin, Conservative MP for West Worcestershire, and chair of the Commons Treasury select committee, said the Bank of England’s increases to interest rates had affected “a really small subset of the population that are having to do the heavy lifting in terms of reducing demand through this policy tool.”

Catherine McKinnell, Labour MP for Newcastle upon Tyne North, said: “One in seven are going without food because of a lack of money. That’s one in four in my region of the north-east.”

The PM replied: “Of course I know it’s a worrying time but there are very specific practical steps that are in place to help people.”