Disabled people are suffering "severe financial hardship and distress" as a result of the so-called bedroom tax, a cross-party committee of MPs has concluded.

The decision to reduce housing benefit payments to social tenants deemed to have a larger home than they need has hit vulnerable people who were not the intended targets of the reform and have little hope of moving to a smaller property, the Commons Work and Pensions Committee found.

The committee voted down a proposal from Labour MP Sheila Gilmore to call for the policy to be scrapped, but it did urge ministers to exempt anyone whose home has been adapted for disability, as well as any household with a claimant receiving disability benefits at the higher level.

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