Neighbours from hell to be housed in 'sin bins'

They are to be moved from their homes into residential units to be supervised round the clock by staff living with them.

The tough action is aimed at reducing the misery caused by "neighbours from hell" and should also cut the cost to the taxpayer of dealing with them.

Many will be placed under curfew and banned from having late-night or other unsuitable visitors. Others will be required to undergo drug or alcohol dependency treatment.

Parents thought to need slightly less intensive action will be monitored in their own homes but forced to abide by contracts stipulating what they and their children must do.

Newham, Camden, Hackney, Lambeth, Southwark, Tower Hamlets and Westminster councils have signed up to the £15million scheme which is part of Home Secretary John Reid's "respect" action plan.

Newham will set up the capital's first permanently staffed sin bin, while the other six authorities will use "managed" properties to supervise problem families after moving them out of their homes.

None of the families dealt with under the scheme will be legally compelled to take part, but will instead be asked to do so to avoid permanent eviction, prosecution for offences triggered by their conduct or the removal of their children into care.

The scheme has been prompted by concern that existing, less hardline, methods have failed to curb the activities of a minority of disruptive families. Critics are likely to question the extent of state intrusion into the lives of families and to raise doubts about whether the "tough love" approach can work.

But Louise Casey, the Government's "respect czar", said: "This is about tackling a minority of feckless and disruptive families who make life hell for their neighbours and the community around them and telling them that enough is enough."

Researchers estimate that problem families can cost the taxpayer between £250,000 and £350,000 a year through the bill for tackling the crime and social problems they cause. By contrast, the cost of a place in one of the new sin bins is estimated to be about £15,000 a year.