02 July 1999
A front-page story in the Daily Mail on Monday predicted the demise of the benefit, which is paid to 4.5 million people a year at a cost of £11.2bn.
The current local authority-administered system would be replaced by housing tax credits through central government.
'The present housing benefit system can't continue – it needs to be reformed,' Darling said. 'The case for change is overwhelming.'
New Labour dislikes housing benefit because it sees it as a disincentive for many to find work and because it is often the victim of fraudulent claims. It is estimated that housing benefit fraud costs the country £840m a year.
Confirmation of the abolition of housing benefit could be included in the green paper on housing due later this year.
PFjul1999
