Brighton and Hove City Council was today handed £575,000 to end the scandal of homeless people being forced to stay in B&B accommodation.

The council has one of the worst records in England and Wales for placing homeless families with children in hotels.

It will be able to spend the money on creating more permanent accommodation places.

Only 44 local authorities have been granted Government money to solve the problem.

Hastings Borough Council is to get £84,000 to alleviate the problem.

Housing minister Lord Rooker said the funding would ensure that, in the next year, families will either move out of, or never end up in, bed and breakfast hotels.

He said: "We should not tolerate children being forced to stay in over-crowded and expensive hotels for weeks, months, and sometimes years, on end.

"Living in a cramped room without anywhere to do their homework or to play does not give them the start in life they deserve."

The Government has already issued advice to councils on the arrangements that should be put in place to ensure all babies and children placed in temporary accommodation receive health and development checks from health visitors.

Earlier this year, ministers also announced a £10 million fund to change housing benefit regulations which fail to punish local authorities if they put families in bed and breakfast hotels.

Louise Casey, head of the Homelessness Directorate, said: "Homelessness has risen slightly in all areas across the country, not just in areas of housing shortage.

"This confirms the need for our new approach to tackling homelessness - one that concentrates as much on people's problems as providing places to live."