The Observer prints leaked letter on welfare reforms.

I blogged on Wednesday about the Shelter report warning of a projected rise in homelessness as a result of proposed changes in housing benefit. Well things have now got very interesting thanks to a leak from within the office of Eric Pickles, communities secretary. The letter is printed, in full, in today's Observer. The most worrying statistic is a projected 40,000 families losing their homes as a result of changes to welfare.

This whole story is building up into the most enormous row. I do wonder if this is going to be the policy that'll pull the coalition apart. What's worrying for the government is that major document leaks have usually been a very bad sign of disunity within departments.

Can't help but think this story is shaping up to be one of those turning points and I'd be amazed if this is the last time I mention it here.