A new report from the Children’s Society warns that increasing numbers of children, young people and their families are falling into destitution.

The charity says staff at its centres across the UK are reporting that they feel “overwhelmed” by the number of families contacting them who lack basic items like food, housing, or nappies and clothes for their children.

The report focuses on the Children’s Society’s new West Midlands Destitution Project, which saw a steady increase in the number of families it was working with throughout its first year.

The number of families being supported by the centre rose from 13 in the first three months to 42 by the end of its first year.

The charity said the rise in young people falling into destitution was as a result of the UK’s “chaotic” asylum system, which means that people who are refused asylum but cannot return home immediately are banned from working.

Although they can apply for section 4 support from the Government, it consists of a small amount of meal vouchers and hostel accommodation, which the charity said was often unsuitable for children. There is no further financial support for other needs.

According to the Government’s own statistics, there were more than 11,000 asylum seekers depending on section 4 support at the end of 2009, a 13 per cent increase on 2008.

The Children’s Society said some mothers were being forced into prostitution to survive while pregnant women could not afford to eat.

The Children’s Society said there were many other families who were receiving no help at all. It said that while local authorities had an obligation to ensure the welfare of children in their area, the only support they offered was to take them into care, separating them from their parents.

Bob Reitemeier, chief executive of The Children’s Society, said: “This report is based on the hard, bitter experience of working with destitute families over the last year.

“Staff based at our projects say they are overwhelmed by the scale of the distress they are dealing with.

“We call on the new Government to review these policies which are leaving children and families without financial support for years, in some cases.”