Housing Scam Reaps Millions

Thousands of unemployed benefit claimants are being “warehoused” in small rooms in terraced houses that landlords are presenting as flats in order to obtain the highest possible housing benefit, a Sunday Times investigation has revealed. Council officials say the bogus flats, which have been found in London, the West Midlands and Leeds, are costing taxpayers tens of millions of pounds in wasted housing benefits. A two-bedroom terraced house can be divided into up to six rooms with lavatories without planning permission. Landlords say the units are single rooms for the purposes of avoiding planning enforcement, yet insist they are flats when claiming housing benefit.  Read more on the Sunday Times website.

IDS in Bid to Tax Disability Cash and Cap Child Benefit

Benefits for the disabled could be taxed and child benefit capped for those with more than two children under plans to further cut the welfare bill. Iain Duncan Smith is arguing that disabled benefits should be increased for the poor and subsidised by taxing the handouts for better-off claimants. He is also pressing a reluctant David Cameron and George Osborne to restrict child benefit to two children for new claimants. As well as saving money, he believes it would encourage welfare claimants to have smaller families. Read more on the Sunday Times website.