Figures published this week by the charity and campaign group showed that more than half of families housed in temporary accommodation after being accepted as homeless by their local authority are in work.
Around 33,000 families are now working homeless, which is a 73 percent increase over 19,000 families in 2013.
The charity said the working homeless are "working every hour they can" to earn a decent life, Xinhua news agency reported.
They are among thousands of working households in low-paid, part-time or contract jobs that are no longer able to afford rents and are therefore being forced into poor and overcrowded temporary accommodation, according to Shelter.
A mix of expensive private rents, a housing benefit freeze and a chronic lack of social housing is blamed for the problem.
Chief executive of Shelter, Polly Neate, said, "The government must urgently come up with a new plan for social housing that delivers the genuinely affordable homes we desperately need."
A spokesman for the Ministry of Housing, Communities and Local Government said the government was investing 1.2 billion pounds (157.4 billion US dollars)to support homeless people.