By Nathalie Knowles Money Box Web Producer

The Minister in charge of housing benefit, Malcolm Wicks, has admitted to the BBC that the system in some areas is 'dire'.

Speaking to the BBC's Money Box programme after the publication of a damning report by the Audit Commission Malcolm Wicks said:

"We would be the first to admit there is a problem... Some local authorities do it very well but in some it is still dire."

The Audit Commission report revealed that thousands of tenants are facing eviction because of growing delays in the processing of their claims.

More than a third of applications are not dealt with inside the government's target time and even good councils can average 36 days to deal with a claim.

Under Labour, the time taken to process a claim has grown by around 25% even though the number of claims has fallen by a third.

The Commission says the government should take urgent action to protect what it calls some of the most vulnerable people in society.

Delays are so severe that over 1.2 million families are affected, according to Alastair Jackson of the Housing Charity Shelter, who told Money Box:

"Many landlords are refusing to let to families that rely on housing benefit.

The families concerned have got nowhere to turn to but the local authority.

Poor housing benefit administration is meaning more people in bed and breakfast hotels and expensive temporary accommodation".

But Malcolm Wicks claimed action is being taken.

He said the first set of performance standards had been published a few months ago and they were finding ways to simplify and speed up the system.

The delays, he says, are being caused by necessary checks to prevent fraud:

"It is perfectly proper that we ask detailed questions... to cut out fraud. In doing that that will cause some delay and we recognise that".

The Minister promised significant improvements over the coming years but admitted:

"At the moment the service is not good enough. We must improve it."