COUNCILS in Wiltshire will be given £40,000 to crack down on tenancy cheats in the hope of recovering dozens of council homes suspected of being fraudulently sub-let.

Housing Minister John Healey, who announced this week that Swindon and Wiltshire were among 147 local authorities benefiting from a share of £4 million, also promised £500 to members of the public whose tip-offs helped take back the first 1,000 homes, which would then be released to those in real need.

Tenancy cheats live elsewhere and can earn thousands of pounds a year by unlawfully sub-letting their properties at higher rental rates. If caught they will lose their tenancy, and could lose their right to social housing in future.

The Audit Commission has suggested that the number of social homes unlawfully acquired or sublet could range from one in 100 up to one in 20 in some inner-city areas.

This would suggest that at least 100 council homes in Swindon, which will receive £10,000 from the fund, and about 50 in Wiltshire, which is getting £30,000, are being illegally rented out to other families.

The cash will be used by councils to set up their own anti-fraud initiatives, including special hotlines and crack squads to investigate allegations of fraud. Public tip-offs are vital to tackling the fraudsters, with half of all homes recovered from cheats said to be done so after tip-offs from neighbours.

Mr Healey also handed over to councils and housing associations about 8,000 leads to follow to potential tenancy cheats in their communities, found through “data sweeps” by the Audit Commission matching tenancy records against records held by councils, housing associations and other public bodies.The minister said: “We can’t allow cheats to hang onto the tenancies of council houses they don't need and don't live in. I want people to feel the system for housing families who need homes is fairer and that's why I'm launching this national crackdown on tenancy fraud.”

Councils and housing associations are also being given practical advice on how best to tackle housing fraud, as well as access to posters and leaflets that they can adapt to meet their needs, to encourage people in their area to come forward with any information they may have on local fraudsters.