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£1m council home sparks review of housing benefits
Kiran Randhawa10 Oct 2008
An inquiry into housing benefit has been ordered today after an Afghan family was placed in a £1.2 million home paid for by the taxpayer.
Work and Pensions Secretary James Purnell ordered a complete overhaul of a system that allowed single mother Toorpakai Saiedi and her seven children to move into the property at a cost of £12,000 a month.
He demanded a full report from Ealing council, which housed the family in July, and vowed to close loopholes that enabled Mrs Saiedi, 35, to receive £170,000 in benefits.
The move came as the three council employees sacked over the debacle revealed senior housing benefit officers gave the go-ahead for the family to have the seven-bedroom Acton home.
The former staff also told how the council department had the authority to cap the £150,000-a-year rent, yet approved the claim with no questions asked.
David Lewis, 37, who was manager of the department instructed to house the family, is furious that he and two colleagues have lost their jobs.
He added that the council had frequently approved moving families into five-bedroom homes, costing the public £50,000-a-year.
"The housing benefit department have the authority and the power to reduce the rent paid out by the council," he said. "They can choose to cap it they feel it is too high. The tenant's claim has to be assessed by them. On this occasion, they did not do that."
He added: "We have frequently placed families in five-bedroom houses and the cost to the taxpayer comes up to around £50,000. These are always approved as long as the family meets the relevant criteria. The astronomical amount is never questioned."
Mr Lewis, from Balham, south London, was sacked on Wednesday with Gemma Calliste and Salma Khan. The three, on temporary contracts, said that they had been made scapegoats after the story was leaked.
The Saiedi family had been referred by the homeless persons unit and the council was required to find a property from a private landlord within rent guidelines set by government agency Rent Services.
The council said the employees were sacked because it was "consolidating' its housing department.
A shocked Mr Purnell said: "It was never intended that the local housing allowance should result in a payment of this magnitude.
I have already asked my officials carefully to examine this issue as part of our current review of housing benefit."
Reader views (11)
Wow, If you work and pay taxes, real taxes, those derived solely from the privet sector. You should be ready to vomit on your presidents shoes. I think you call him a prime minister. I say give those “pushers” that got sacked a years wages for a promise to never work a public sector job again. They “the pushers” will then become part of the solution instead of the problem. That motherly touchy feely goo they call socialism never works, unless of course you want communism, and a wrecked economy. We the countries with opportunity need to get back on path to what made us that way Ingenuity, integrity, hard work, and compassion. Without a government willing to mug us of our last dollar. I HOPE we can CHANGE back to a path of doing the right thing.
- Uncleoki, California USA, 18/03/2010 11:18
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this is disgusting, i live in exeter and have done my whole life, i am 25 years old and i have always had a job bar 6 months of unemployment after i had my daughter, i am in a small 2 bed flat with 3 chilren and one on the way, it rediulously small for my family and i am at university full time studying law making me not entitled to benefits. i am busting my ass to make my life better and these people come to the uk and live like kings and queens, all i ask from this government is to give me a 3 bed house with a garden for my children to play in. do i get that NO and i al a full rent paying citizen, it makes me sick!!!!!
shame on you UK. it sad to see what we have become as a nation, not looking out for our own people before others, what happent to charity ( noyt that im asking for it) beginning at home, enlishmen are loosing their jobs left right and centre and are turned away from help while the foreigners come pouring in.!!!!!!
enough said!!!
- Kim, exeter, devon, 27/04/2009 14:45
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You motley lot have no compassion,you need to give a car as well, so they fit in with the surroundings,
Ps my tax contribution to HMRC for 2006 was £248,000
pleased it's spent wisely,
- Dan Lyons, london, 24/10/2008 12:20
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Yes we should help the destitute but do they all need their own bedrooms? even people who work and earn that kind of money stick two kids of the same sex into the same room. We need to be sensible. If the council consistently mispends money like this the UK will have to start turning other worthy causes away. The numbers just don't work. Ridiculous.
- Nellie, London, UK, 10/10/2008 13:59
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Annie Chohan, get a grip on reality.
The small island that we are, these people would have travelled through countless 'safe' countries to make it here. And why do they choose to do so, because they know what benefits await them.
We're at bursting point, and the economy is in a mess,so how on earth do you expect us to continue helping not only our own freeloaders, but the rest of the worlds too.
- Scott, London, 10/10/2008 13:40
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i can't comment..it would be too rude to print. i'm an OAP on state pension fed up with eating OOD and sub-standard food,going to bed at twilight to keep warm. then you read twaddle from the likes of annie chohan.i could explode.
- Ann Foley, wimbledon, 10/10/2008 12:48
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Annie Chohan, Croydon. These parasites were not forced to come here, they passed through dozens of safe countries where they could easily claim asylum - but chose to come to a magnanimous country where they were guaranteed to get free houses, education, health services and massive benefits. The three eldest "children" are all of working age (in their twenties), but are content to live off our taxes. One of them even complained about an equally large (and expensive) alternative property "because it doesn't have a driveway and I need to park my car". And you claim they are "unfortunates who have a mere existance". The mother is festooned with gold jewelry and has obviously had expensive dental work. Unfortunate? I think it is the poor British taxpayer that is unfortunate being landed with these scroungers who will probably never work and live off us forever.
- Jo, London, UK, 10/10/2008 12:39
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Most of the people in Local Authorities aren't bright enough to get a job in the private sector but some how end up running millions in the Local Authorities... beggars belief!
- Oscar, London, 10/10/2008 11:40
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PLEASE!!!!!! dont blame theses unfortunate people for their dire situations, leaving their countries, we are supposed to be a chartible country.I would have detested to leave my home, and be pushed here and there what a misery to leave all your family back home.
Blame the system its a mess, like everything else here, dont blame it on the unfortunates who have a mere existance,and anyway have we less food on our plates, and have our lifestyles changed in anyway due to this situation, we are such a bloody moaning nation, maybe due to the lack of sunshine guys. regards Annie
- Annie Chohan, croydon, 10/10/2008 11:20
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Blimey! You'd think that they were members of the Freeloading Politicians' Club.
- L.Taubler, London / UK, 10/10/2008 11:18
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Of course they always authorise these type of large payments.
After all it's not their money is it?
Privatise the Local Authorities, most of the staff are not even good enough to be tossing burgers in a burger bar.
- P I Staker, london, 10/10/2008 10:32
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