Three-quarters of claimants will not be able to avoid hardship under the government's new benefits regime by moving house or getting a job.
A study by the Local Government Association (LGA) has shown that housing and other benefit cuts affecting the UK's 1.18 million workless households will lead to hardship for most.
On average a household claiming benefits will be £31 per week worse off after the government's reforms, around 14% of their entire income.
The higher cost of housing in London mean claimants in the capital will see even higher falls.
The effect of changes including below-inflation benefit rises, the benefit cap, housing benefit cuts, tax credit cuts, bedroom tax and others means the 45% of all households that receive a government payment will see a big income drop.
The report points out that 59% of all welfare cuts fall on working families, despite the government's 'skiver versus striver' rhetoric being designed to make workers believe they are targeted at the unemployed.
Those who want to move to cheaper areas to avoid the worst of the changes should beware; the LGA makes it clear that cheaper housing is almost always based in areas with fewer employment opportunities, and shifting workless families to these areas is likely to make long-term unemployment worse.
Figures released yesterday showed long-term worklessness rising, and it is at its highest level for 16 years.
Councils fear being left holding the baby when this deprivation hits home, and estimates that at least four out of every five households affected will need financial assistance to deal with the impacts of welfare reform.
Cuts to their budgets mean money for this may have to be taken from other vital services including education and social care.
Sharon Taylor, chair of the LGA finance panel, said:
"Unless more is done to create new jobs and homes, households will be pushed into financial hardship and we will see a huge rise in the number of people going to their councils asking for help to make ends meet.
"Local government can help generate the necessary jobs and new homes but the government has to give councils more influence over employment schemes and more freedom to borrow to build new houses.
"Demand for discretionary housing payments will significantly outstrip the money the government has made available to councils to mitigate the changes. This will have a massive impact on local government budgets."
The LGA wants the government to publish better information on the likely impact of its benefit changes, and to work better with other agencies including councils to understand the problems and develop ways around them.
It also wants more funding to help those suffering, and to see a major house building programme including social housing.