TENANTS hit by the ‘bedroom tax’ will be given cash to cover their losses from “day one” of a Labour Government, Ed Miliband said.

The Labour leader pledged that abolishing the controversial measure – which cuts housing benefit for private-sector tenants in ‘oversized’ homes – would be his top priority.

And he went further, announcing that local authorities would be given money immediately to make up the shortfall for “all families who currently pay it”.

That will include the vast majority of affected tenants in this region. Just 21 of 1,009 households in County Durham tenants affected had moved to a smaller home, according to figures last year.

The others have seen their housing benefit slashed of 14 per cent (for one extra bedroom) and 25 per cent (where there are two).

Mr Miliband said: “This bedroom tax is indefensible. It's cruel, it is unfair and it doesn't even work.

“We'll get to work immediately to ensure that families no longer lose out. We'll make new funds available to local authorities to offset the full costs of the tax for all families who currently pay it.

“So on day one of a Labour government, we free families from the burden of the bedroom tax.”

Labour said the move would cost about £100m – helping around 464,000 claimants – and funded by closing tax loopholes.

Councils would be given extra ‘discretionary housing payments’ to cover tenants’ extra costs, until legislation is passed to reverse the abolition of the so-called ‘spare room subsidy’.

During Thursday’s ‘Question Time’, a woman confronted David Cameron about the harsh effects of the policy telling him: “People have died from the bedroom tax.”

But the prime minister said further cuts in welfare spending are necessary and has insisted the bedroom tax is freeing up larger homes for families on the housing waiting list.