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Barmy Benefit System - update

Thu 09 Oct 2008
Ealing Council has just realised it is forking out £12,500 per month in rent for an Afghan family in Acton. This is twice the market rate in Acton and almost 5 times what they should be paying.

When Ms Toorpakai Saindi, who has three sons and four daughters, approached the council after being made homeless in July, it had a legal obligation to find her a seven-bedroom home.

Ealing Council was more than happy to oblige, as one of their 3 immediate priorities is cost effective services and offering "Value for Money".

Now it has sacked three temporary staff following the incident. Their excuse as well as the Councils was they only blindly followed the rules.

The Government Rent Service, which runs the Local Housing Allowance, allows landlords to view the maximum amount councils will pay.

Ealing Council believes that publication of maximum rent levels should be ended to enable them to be able to negotiate more competitive rent agreements.

They said "In cases such as this, where there are very few seven-bedroom properties, landlords will obviously seek the absolute maximum." Yet, there are lots of seven-bedroom properties available in the area for a quarter of the price.

A similar house in the same street is available at almost a fifth of the price at £2.800 a month, that’s £9,700 a month cheaper, could save the taxpayer £116,000 a year.

Most people would disagree with Ealing Councils assessment. Publishing maximum rent levels is not the problem. The setting of these above the market rate and Councils being more than happy to oblige is the real problem.

Neither should the Council be obliged to house any homeless person in the most expensive part of the area.

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