The Local Government Ombudsman has ordered Oxford City Council to pay £5,500 to a homeless family after forcing it to live in overcrowded conditions.

Today, Jerry White found the council responsible for maladministration causing injustice, when it processed an application from the family in 1995.

In 1993, the couple and their adult daughter, who have not been named, declared themselves homeless. In 1995, the council removed the daughter from the family's application. As a result, the family lost its eligibility for a two-bedroom home. They moved into a one-bedroom bungalow a year later and have been living there since then.

Following their complaint, the ombudsman ruled the council should ofer the family the next suitable two-bedroom home, pay them £5,500 now and £1,000 every year this does not happen.

A council spokesman said it would report back to him on what action it plans to take.