Peter Rolfe believes the £180,000 taxpayer-funded home violates his human rights because it can house only five of his children.
The benefits claimant, whose children are by 10 different mothers, claims his council has failed in its “duty of care”.
Single father Mr Rolfe, 62, who has not worked for 20 years, said yesterday that living in a three-bedroom terrace in Newport, Isle of Wight, deprives him of a proper family life.
He said: “It’s worse than a prison cell. Convicts have more spacious accommodation.
“The council are breaching my human rights. I have a right to live with all my children. If the council cannot find a house big enough they should buy two houses and knock them into one. I don’t know why taxpayers would have a problem with it.”
Mr Rolfe gave up work as a chef to care for his family and relies on housing benefit and child tax credit. He shares his home with Peter, 19, Rose Anne, 18, Marie Anne, 15, Carrie Anne, 14, Leeanne, 17, and her one-year-old twins. Four other children come to visit but he is not in contact with the remaining offspring.
The Local Government Ombudsman agreed with his complaint that the home is too cramped. It said he was the victim of a “serious injustice” as a result of failings by Isle of Wight council.
The council has conceded it is considering buying a property worth at least £300,000 or may buy two and knock them together.
A spokesman said: “The council has a statutory duty to provide housing to those eligible. We are continuing efforts to identify accommodation large enough. These include acquiring another property or identifying two properties that could be reconfigured to one larger property.”
The move was branded outrageous by Jonathan Isaby, chief executive of the TaxPayers’ Alliance.
He said: “Mr Rolfe already has a large home at taxpayers’ expense and the idea that it is his human right to be given a larger one is insulting to those struggling to afford their own homes.”