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EU savings would sort housing fraud

Wednesday, 27th October 2010

THE release of a shock report on local authority housing has prompted calls for an immediate solution to the problem by UKIP.

“More needs to be done to crack down on housing fraud”, said UKIP's Local Government spokesman, Cllr Peter Reeve.

“Too many local authority homes are being occupied illegally. This is ripping off taxpayers and blocking the supply of much-needed homes for vulnerable families."

Cllr Reeve's comments follow the release of the Audit Commission’s latest national report ‘Protecting the Public Purse 2010’, which estimates that as many as 50,000 houses and flats in the UK, which should be available for legitimate social housing tenants, are in fact being illegally sub-let.

The report suggests that the fraud menace is draining money from cash-starved councils. It says housing tenancy fraud is now significantly affecting the country’s economy with temporary accommodation for homeless families costing almost a billion pounds a year.

UKIP Policy is that from the saved UK contributions to the EU, UKIP will spend £1.5 billion a year on building new quality social housing and demolishing poor quality houses especially failed tower blocks and low quality buildings. Instead of social housing being let at below-market rents with tenants liable for full Council Tax – with social tenants entitled to claim income-related Housing Benefit and Council Tax Benefit – local councils should charge social tenants an all-inclusive rent (rent plus Council Tax), set at a flat percentage of the tenant household’s gross income.
 

Housing Benefit and Council Tax Benefit for private tenants should be phased out and replaced with ‘Workfare’ jobs, which will be administered by local councils, to ensure that those who would otherwise not be able to find work can still cover their rent and Council Tax, as well as contributing something of value to the local community.

UKIP will encourage the building of new local council homes by local councils instead of forcing developers to provide social housing on new developments which amounts to a ‘homeowners development tax’.

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