After a committee of MPs said the bedroom tax unfairly affects disabled people, Tim Farron says his party will push for change.
The mother of a disabled child described how she struggles to make ends meet after having her housing benefit cut by 14%.
The minister in charge of the controversial 'spare room subsidy' welfare reform will not be in the Commons to defend it today.
A father of a disabled boy who will have to pay money back under the "bedroom tax" has hit out at the "dreadful" scheme.
Jimmy Daly from Stoke told Daybreak he was moved into his current two-bedroom home to help him cope with his son's disabilities, but because his son does not live with him full time, Jim has to pay some money back.
"I was moved in here because of his disabilities, and now they're saying because your son is disabled you have to pay this dreadful tax. It's wrong."
The bedroom tax has been "mismanaged from the start" and has failed to free up larger properties, according to Labour.
Shadow welfare minister Chris Bryant said:
– Chris Bryant
This ill-conceived policy has been mismanaged from the start.
It's failed to free up larger properties because there simply aren't smaller properties to move to.
It's hitting the most vulnerable hardest, and failing to save the money that David Cameron had predicted.
The Government has no reason to keep it - if they won't repeal it, a Labour government will.
The bedroom tax has failed to save the taxpayer £115 million of the £445 million that was expected, a leading social policy charity has found.
A report by the Joseph Rowntree Foundation said savings from the so-called bedroom tax - a reduction in housing benefit for social housing tenants deemed to have more rooms than they need - were lower than expected but fewer people had been affected.
Around 498,000 people had been affected altogether, the report said, compared with an initial Government estimate of 660.000.
Report author Steve Wilcox said: "There are options to alleviate the worst effects of the policy - particularly in the provisions for people with disabilities, bedrooms too small to share, and those unable to move.
"The savings from the size criteria are modest, and will decline over time, but they have been achieved at disproportionate costs for tenants and landlords."
The Liberal Democrats wants to see the so-called 'bedroom tax' changed so that people do not face moving out of their home with nowhere to go, the party's president has told ITV News.
Current policy means social housing tenants who have a spare room face having their housing benefit reduced.
Speaking to Deputy Political Editor Chris Ship, Tim Farron said Nick Clegg shared "the view that this is something that we want to see changed".
Citizens Advice has said an extra room "can be a lifeline" for a disabled person, calling it "as vital as a guide dog or a wheelchair".
Chief executive Gillian Guy said for many people a spare room "is essential to their wellbeing" as it is needed for dialysis equipment or room for a carer.
Ms Guy said: "Many sick and disabled people have bedrooms which have been adapted to help them to cope with their condition.
"Moving disabled people out of their houses is not only a potential risk to their health, but can cost the individuals affected and councils significant amounts of money if they need to start from scratch in a new home."
The head of homeless charity Crisis has said the Government risks forcing poor people out of their homes because of changes to housing benefit such as the 'Bedroom Tax'.
– Leslie Morphy, Chief Executive of Crisis
"The Government must listen to this verdict from MPs across the political spectrum and rethink its cuts to Housing Benefit, particularly for those who cannot change their circumstances by working or who are struggling in low paid jobs. Without prompt action, the Government risks driving homelessness still higher."
Shadow work and pensions secretary Rachel Reeves said it was "completely unfair" that many disabled people were hit by the "bedroom tax" and charged for the space used to store essential medical equipment.
"Britain can't afford another year of David Cameron and Nick Clegg's tax on bedrooms," Ms Reeves said.
"If they won't listen to the country and scrap their hated bedroom tax, then a Labour government will," she added.
The chair of the Work and Pensions Select Committee has said those being hit by the withdrawal of the spare room subsidy are often not those the policy was intended for.
Dame Anne Begg said: "Many of the people being hit by the so-called 'bedroom tax' are in vulnerable groups, very often people with disabilities who can't move house."
The Government has reformed the housing cost support system with the aim of reducing benefit expenditure and incentivising people to enter work.
But vulnerable groups who were not the intended targets of the reforms and are not able to respond by moving house or finding a job are suffering as a result.
– Dame Anne Begg, House of Commons Work and Pensions Committee chair
The Government's reforms are causing severe financial hardship and distress to vulnerable groups, including disabled people.
Discretionary housing payments (DHPs), which local authorities can award to people facing hardship in paying their rent, are not a solution for many claimants.