Tories have been accused of putting "huge numbers" of Ukrainian refugees at risk of homelessness by failing to deal with the energy cost crisis.
It is feared thousands of British sponsors may pull out of hosting those who fled the war-torn country next month because of escalating bills.
Today the UK's refugees minister, Lord Harrington, said he had been lobbying the Treasury "very hard" for "thank you" payments to hosts to be doubled, as pressure mounts on the government to provide extra support.
A source suggested Lord Harrington is trying to "embarrass" the government into action as the crisis deepens.
Today Labour hit out amid fears thousands of British sponsors may be forced to pull out from hosting because of escalating bills.
Shadow levelling up secretary Lisa Nandy said: “British households across the country have stepped up to help Ukrainian families fleeing this dreadful conflict, but the Conservatives' inaction on the cost-of-living crisis means thousands could be left out of pocket for opening up their home.
“If the Government do not act now, they will risk a huge number of Ukrainian refugees becoming homeless this winter."
It is feared that a quarter of hosts could quit the scheme next month - potentially leaving more than 19,000 Ukrainian refugees with nowhere to go.
Currently each household that provides accommodation to Ukrainian refugees receive a 'thank you' payment of £350 a month - but refugees minister Lord Harrington of Watford has called on this to be doubled to reflect the soaring cost of living.
This would cost the Treasury around £17 million a month.
He told The Times that many in "quite deprived" parts of the UK have given up their homes, adding: "I’m hoping that if I get this increase from the Treasury, it’ll encourage people to renew and will help compensate them for the increased costs that they’ve got."
Lord Harrington also told PA news agency: "The costs... they're paying maybe a big chunk of rent themselves, the mortgage payments have gone up and everything, and I think it's perfectly reasonable, in my view, to increase the amount that we're paying them."
A government source suggested Lord Harrington was trying to “embarrass” the Treasury into action.
They told the Mirror it was “not far off” the £350 payments starting to expire and “we need to find homes for thousands of Ukrainians for the next six months.”
They added: “At the end of the day it’s with the Treasury. It’s still with the Treasury and until they say yes it can't happen."
Lord Harrington said he had asked for extra money - in the "low tens of millions" - for English language support for refugees to help them into employment.
The refugees minister also called on landlords to waive their requirements for credit histories, as many who fled do not have the necessary documents.
Earlier this month a survey by the Office for National Statistics (ONS) found that three quarters of sponsors intend to carry on beyond the initial six months - but 6,000 said they were no longer able or willing to do so.
This means an estimated 19,000 Ukrainians could have nowhere to go after September 18.
Since Vladimir Putin's illegal invasion in February 81,7000 refugees have arrived under the UK sponsorship scheme, with around 25,000 Brits signing up to help. More than 60,000 more people fleeing the war have applied, but have yet to arrive.
Lord Harrington said some councils have pledged to act as guarantors for those wanting to rent homes - which he is trying to expand.
He said: "I suspect some of them will need an extra budget to do it, but again, I can argue to the Treasury - it's my job to say: 'Well, you actually save money, because people then are not becoming homeless'."
The Mirror has contacted the Treasury for comment.
It told PA that the monthly thank you payments for hosts are to "recognise their generosity", and do not affect benefit entitlement nor council tax status.
A spokeswoman said: "We have already acted to make sure these payments are exempt from tax, and continue to monitor and review the support provided under the scheme."
