The Welsh nationalist party Plaid Cymru is pledging tax credits for private tenants whose rent and utilities bills add up to more than 30 per cent of their income.

A spokesman for the party said at the announcement of its manifesto for next month’s General Election that almost half of the households renting in the private sector in Wales pay 30 per cent or more of income on rent.

Plaid estimates that 37 per cent of private renters in Wales earn less than £15,000 a year.

The tax credit would take the form of up to £25 a week to each household paying above the 30 per cent threshold.

Plaid will also create a National Housing Company to build 20,000 green new homes across Wales over five years, and would support local authorities wishing to build new council housing.