A FAMILY of 10 is getting paid more than £26,000 annually in housing benefit alone, as Oxford’s bill spirals to £80m a year.

The family’s payout – the highest in the city – was uncovered by the Oxford Mail as the Government battles to bring in a cap of £26,000 for all benefits. They have not been identified but it is understood they have lived in the privately-rented home in Cowley Marsh ward and have received more than £200,000 in housing benefit since 2004.

It is not known if they claim any other benefits, apart from council tax, which this year will be £1,256.86.

Four other families received between £17,902 and £20,164 last year in housing benefit, figures obtained by the Oxford Mail reveal, while the total bill for the city this financial year is expected to hit £80m.

The family of 10 will see their housing benefit cut, even without the Government forcing through its changes, when a separate cap on the payment will be put in at £20,520 from October.

Jan Bartlett, who runs East Oxford’s Premier Lettings, said: “It must be a massive house.

“If somebody said they were looking to rent something in Oxford for £2,000 a month I would be thinking major luxury.”

Neighbours in Cowley Marsh were surprised.

Richard Holmes, himself a dad-of-10, said he and wife Louise, 41, supported the seven children living with them in Reliance Way through working.

The 50-year-old porter at an Oxford University college said: “You say you have 10 kids and the first thing people say is ‘you must be claiming benefits’.

“That winds me up. I say ‘I have been working all my life’.”

Sales consultant Tom Goodban, who pays £1,200 a month in rent,said: “It is pretty sickening to be honest.”

The 26-year-old Reliance Way resident said: “People work hard every day and struggle to pay the bills and some get it all for free.”

Taxpayers’ Alliance spokesman Emma Boon said: “This is further evidence that the proposed welfare cap is a good idea.

“It cannot be right that some people are being supported in accommodation that is more expensive than many taxpayers can afford for themselves.”

Labour-run Oxford City Council paid out £43.8m housing benefit in 2005/06, but this has risen to £61.1m so far this financial year.

Deputy council leader Ed Turner said the final bill, paid by the Government, could top £80m.

He said rising unemployment had boosted payouts, adding: “The sad truth is there aren’t enough properties to go around and that is why you get sad cases like this.”

Benefit cuts will not make landlords cut rents as hoped by ministers, he said, as demand is high from non-claimants and more social housing is needed.

Oxford East Labour MP Andrew Smith said: “The way to bring down the housing benefit bill is to build more affordable homes and grow the number of jobs.”

Trying to justify the Government’s proposed cap – which received a setback this week then the Lords voted to exclude Child Benefit from the £26,000 limit – Department of Work and Pensions spokesman Owen Brace said: “It’s not fair that benefit claimants can receive higher incomes than families who are in work.”