Letting agents are among those who have received large sums of money in direct housing benefit payments, it has been claimed.
The union GMB has been campaigning against what it calls “billions going into fat cat wallets”.
According to GMB, the money would be better used on building homes.
GMB, which has been sending Freedom of Information requests to local authorities across Britain, names Martin & Co, which it says received £3.1m, and Northwood, the lettings franchise chain, which it says received over £2.3m last year.
A London letting agent, Zeta Home, is said to have received £102,434.32 from Tower Hamlets.
However, GMB does not clarify in its campaign material whether the agents are themselves landlords who are entitled to receive Local Housing Allowance, or whether they are acting as agents and collecting the money on behalf of landlords.
In 30% of LHA cases, the money is payable direct to the landlord.
A total of 311 councils were issued with Freedom of Information requests asking about the top 20 private company landlords, ranked by the amounts received. Of these councils, 69 refused to divulge the information.
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 where the money ends up tax free in tax havens. This is made possible by out of control rents and a lack of affordable and council homes that so many hard-working people and their families desperately need.
“These billions going into fat cats wallets and offshore tax havens would be better spent building houses and homes for real working people.”
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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 where the money ends up tax free in tax havens. This is made possible by out of control rents and a lack of affordable and council homes that so many hard-working people and their families desperately need.
These billions going into fat cats wallets and offshore tax havens would be better spent building houses and homes for real working people.”
What a load of hot air and rubbish this man spouts. Where is his proof that this money is going off-shore? As the article points out there is no clarification on whether, for example, Martin & Co OWN the properties claiming benefit or are collecting the rents on behalf of client landlords.
I own one house (former family home) and co-own some flats. Does that qualify me as a fat cat or a flea bitten moggie?
This has to be better than paying the money direct to tenants who are seeing other benefits cut and will be tempted to spend the money on other expenses, leading ultimately to eviction and a real need for the public housing that no Government of any colour has shown a commitment towards for years. It’s easy to talk about the cash going off-shore but how much does? Where’s the evidence? Why is GMB upset about secrecy? In any other circumstances this would be called privacy, protecting the identities of those on benefits.