A leading Labour councillor has criticised the Government for not doing enough to help people on benefit in private rented homes.

Tehmtan Framroze, Cabinet member on Brighton and Hove City Council, said the Government was saving £3 billion a year on housing benefit because of a fall in unemployment.

Councillor Framroze, who has responsibility for housing in the city, said: "This is good news but I would like to know why some of this money cannot be redirected to helping the many thousands of people whose rent is in excess of their benefit.

"This would help reduce levels of housing poverty and bring much-needed stability to the private rented market."

He said: "I am very disappointed with the way in which the Government has avoided addressing the fundamental question on housing benefit.

"It is failing in its main purpose of helping tenants to pay their rents and thereby retain accommodation."

Coun Framroze has written to the three Labour MPs in the city, David Lepper (Pavilion), Des Turner (Kemp Town) and Ivor Caplin (Hove), asking for them to press the city's case with the Government.

He has given them a table showing how far housing benefit is behind the level of private rents.

While some London boroughs have had the cap on benefits lifted temporarily, the limits in Brighton and Hove remain low.

Coun Framroze is calling for a meeting with housing minister Nick Raynsford or a top civil servant.

Mr Lepper said he would support the plea and had already raised the issue several times with ministers.

Since he was elected in 1997, the MP has been pressing for changes to housing benefits and, in particular, wants a relaxation on restrictions imposed on people under 25.

The city council is having to house more and more homeless families, many of whom have lost their homes through being unable to afford private sector rents.