Millionaire Private Landlords Abusing Britain’s Welfare System, Says GMB

Greedy private landlords are raking in billions of pounds of public money in housing benefits payments, new research shows.

Freedom of Information Requests by the GMB union reveal that private landlords received a staggering £9,296 billion in housing benefit in 2013/14.

GMB says this abuse of Britain’s welfare system has been allowed to go on for far too long. Millionaire landlords are exploiting low-income families in need of housing and who could otherwise be left homeless.

There are 4.2 million households living in private rented accommodation in Britain. 1.59 million of these (38%) pay part or all of their rent using housing benefit.

More people now rent privately than from councils and housing associations. The switch away from cheaper social housing to the more expensive private sector has resulted in an increase in private tenants claiming housing benefit.

The Conservatives have pledged to open up social housing to buy-to-let private landlords. This could reduce an already dwindling social housing stock and further increase the housing benefit bill.

GMB has named and shamed twenty private landlords abusing Britain’s welfare system. These include:

  • Private landlord Mr Mohammed Taj was paid £3,219,858 of taxpayer’s money direct as housing benefits by Watford in 2013/14.
  • Investing Solutions Ltd was paid £2,239,915 by Merton, Brent, Lambeth, Hammersmith and Fulham, Ealing and Wandsworth councils.
  • Thorney Bay Park Ltd was paid £1,924,226 by Castle Point council in 2013/14.
  • Mr Alastair Kerr was paid £1,616,951 by Ealing, Hammersmith and Fulham and Hounslow in 2013/14.

Paul Kenny, GMB General Secretary, said:

“This research lifts the lid on the mainly secret payments to landlords who are the real winners from Britain’s welfare system.

“We see taxpayers cash subsidising buy-to-let empires with £9.2 billion of hard earned taxpayer’s cash paid into private landlords’ bank accounts – much of it ending up in tax havens.

“The abuse of housing benefit by private landlords has gone on for too long.

“Millionaires take sackloads of cash for exploiting those in housing need or stuck on low pay. It’s incredible that the Tories want to extend this billions pound rip off.

“It’s time to close the offshore tax dodgers charter, cap rents and use the billions being sucked up by property speculator landlords to build affordable homes for people again.”

Source –  Welfare Weekly, 28 Apr 2015

http://www.welfareweekly.com/millionaire-private-landlords-abusing-britains-welfare-system-says-gmb/

Advertisements

4 comments

  1. Chris

    Dear Mr Paul Kenny, GMB General Secretary

    So why does not GMB trade union fund, please, the campaign for election of TUSC – with so many trade unionists running as MP and councillor candidates?

    There are other parties, but TUSC is after all, Trade Unionist and Socialist Coalition.

    Or the 632,000 GMB union members, send a quid each to TUSC for their campaign funds, to get past the total media blackout about them, please?

    TUSC OFFER – REVERSE RISE IN RETIREMENT AGE – PAY DECENT STATE PENSION – LIVING WAGE £10 PER HOUR
    END WORKFARE – BAN SANCTIONS – STOP BENEFIT CUTS (WHICH WILL HIT THOSE IN WORK IN 2016)

    NO I AM NOT A MEMBER OF ANY POLITICAL PARTY
    We have enough parties to bring in a 250 multi party group of parties that are guaranteed anti austerity
    that would be equal in size to either Tory or Labour and maybe even more than them:

    http://www.anastasia-england.me.uk

  2. A6er

    Reblogged this on Britain Isn't Eating and commented:
    The real benefit scroungers are the Landlords of Social & Privately rented homes.
    To have the public purse pay nearly £10 Billion, yes thats right, £10,000,000,000 to these profiteers is a fkin disgrace.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s