Mitchell Keenan, 32, was diagnosed with frostbite six weeks ago after his family discovered his blackened toes and rushed him to hospital.
Mitchell was living in the tent with his father Keith, 62, following their eviction from their four-bedroomed home in Birch Green, Skelmersdale, Lancashire, last year when they fell behind with their repayments.
Keith was also diagnosed with severe health problems including malnourishment, scabies and dementia.
Dawn Doyle, 54, is Keith's sister, who tried to find them shelter.
"They lived in their home for thirty years and got into difficulty last year.
"They had their benefits sanctioned and things just spiralled out of control, they both have neurological conditions and disabilities and kept missing job interviews, so the problem got worse and worse.
"In July they lost their home and I tried everywhere to get them accommodation but nowhere would take them."
Dawn was eventually forced to buy her brother and nephew a tent, which they pitched on the Beacon in Skelmersdale.
Dawn said: "I felt awful that I couldn't take them in, but I'm a single parent, with my own disabilities and I just knew I couldn't cope.
"I tried my best for them and contacted so many different organisations, but just kept getting turned away.
"Social Services said they couldn't come and assess them because they were in a tent - it was just farcical.
"When we saw Mitchell's toes we were horrified, that this can happen to people in the 21st century is disgusting."
Mitchell has now been given temporary accommodation by West Lancashire Borough Council and Keith has been taken in by Stonham housing.
Dawn said: "The bedroom tax is an awful thing, it's affecting people's lives all over the country and needs to be repealed."
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