Familes renting homes in Epping Forest will struggle to pay for basic needs such as heating if a proposed benefit cap is introduced, it has been warned.

Almost 600 households relying on housing benefit to pay rent in Epping Forest could have to move to cheaper parts of the country or even cut spending on food if a new Conservative government is formed after the May general election, according to housing association Moat.

Speaking on the Today programme last week, Prime Minister David Cameron re-affirmed the Conservative’s plan to reduce the annual benefit cap for an individual from £26,000 to £23,000 “within the first few days” of forming a new government.

In a report from Moat, a housing association covering the south east of England, it is claimed that all three-bedroom social homes in Epping Forest would become instantly unaffordable under the reduced cap, forcing 537 social households to make drastic choices.

Angelo Sommariva, policy manager at Moat, wrote the damning report.

He said: “The people hit worst will be families.

“The first thing I would expect is that people have to start making difficult choices as they slide into debt and unfortunately that is where we see unsustainable debt like credit cards, or they have to forego essential things like food or heating.

“Further on down the line, unfortunately we would expect people to move to cheaper parts of the country.”

People living in so-called “affordable” properties would also be hit, with 34 families at risk of not being able to pay rent.

Under the reduced benefit cap, all two-bedroom homes would become instantly unaffordable for Epping Forest families on housing benefit, according to Moat.

This would force families out and back into privately rented properties, said Mr Sommariva.

He said: “People may be forced into the private rental system, so they may start having to overcrowd. 

“People will have to make very difficult decisions about the kind of housing that they live in.”

According to the report, the only properties affordable for families dependant on benefits would be single bedroom properties, and these would cease to be affordable after eight years.