MPs in the UK have expressed concerns that a government housing scheme might undermine efforts to help reduce people’s dependence on state benefits for survival.

A committee has warned that the Affordable Homes Programme worth £1.8 billion will push poor people bacnk into the benefits trap and will undermine government’s plans to “make work pay”. The cross-party Public Accounts Committee estimates that the scheme could drive up the housing benefit bill by £1.4 billion in the UK.

The Affordable Homes Programme that was launched two years ago, aims to build 80,000 new homes by 2015 in order to address the issue of a shortage in housing in the UK. Firms that provide affording housing get an average government grant of £20,000 per home to build new housing to let out to social tenants.

However, as the amount of the grant is only about a third compared to the previous scheme, the providers are allowed to charge higher rent from the tenants. This could prevent people from renting new homes while others will start claiming more on housing benefits.

“The programme shifts costs from one government department to another, and it is unclear whether this will provide better value for money in the long term. Where higher rents are paid through increased housing benefit, tenants may find it even harder to find work that pays enough to be worthwhile, undermining the Government’s objective of ensuring that the benefit system makes work pay,” said Margaret Hodge, the committee’s Labour chair.