Council tenants who sublet their homes could face fines and possible jail terms, under new plans outlined by the Government.
A new consultation, expected to be announced by housing minister Grant Shapps today, could make it illegal to rent out homes to private tenants, with penalties of up to £50,000 and a maximum jail term of two years.
Mr Shapps said: ‘Tenancy cheats are taking advantage of a vital support system for some of the most vulnerable people in our society and getting away with a slap on the wrist while our waiting lists continue to grow. I want these swindlers to pay the price.
He added: ‘I want everyone to know that our country’s social homes are going to those in genuine need, not providing a ‘nice little earner’ to someone who could afford to live elsewhere.
Recovered proceeds from fraud will also be recycled back to landlords rather than returned to the state, with moves to oblige banks and utility companies to provide data on suspected offences.
The announcement comes as the Government attempts to crackdown on abuse of the system, with an estimated 160,000 social homes under illegal occupation across the country.
The housing minister had earlier told the Sunday Telegraph that such abuse was a ‘scandal’, costing tax payers between £5 billion and £10 billion a year.
