Prisk announces £9.5m to tackle housing fraud

Mark Prisk said 62 councils will share the money to bolster their activity to crack down on fraudulent behaviour by hiring specialist investigation teams or improve data systems.

The minister said this work was vital to ensuring that the valuable resource of social housing goes to those who need it most.

In November the government backed a private member’s bill by Conservative MP Richard Harrington, which makes sub-letting a criminal offence.

The Prevention of Social Housing Fraud Act, which is due to come into force this summer, will mean perpetrators could face a fine and a custodial sentence of up to two years, while councils will be able to recover the proceeds of sub-letting social homes.

Mr Prisk said: ‘Tenancy cheats and fraudsters deny social homes to people in genuine need of this valuable resource, while costing the taxpayer hundreds of millions of pounds.

‘That’s why we’re cracking down on this criminal behaviour with a £9.5 million fund to back locally-led efforts to tackle the tenancy cheats and giving greater powers to the police and councils so perpetrators face the full force of the law.’

The Audit Commission estimated in 2009 there were at least 50,000 unlawfully occupied social homes in England.