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Shapps targets council tenant "fat cats"

Wednesday, 5 October 2011 2:49 PM

Housing minister Grant Shapps has revealed plans to charge high-earning council tenants the full market rent on their homes.

He briefed the media about his "pay to stay" plan at the Conservative Party conference in Manchester this week.

It would apply to a claimed 6,000 people who earn more than £100,000 a year and still live in council homes on a subsidised rent. Shapps says that this is unfair while five million people are still on the waiting list for homes.

He told the Daily Telegraph: "Labour did nothing to encourage their fat cat friends to give up their subsidised homes for those in real need.

"That's why for higher earners on six-figure salaries we're introducing 'Pay to Stay' with a simple message. You can keep your social home as long as you pay a market rent so that we can use your cash to build homes for the most vulnerable people on the waiting list."

Critics of the scheme question the figures and say it includes households where two or three people may be earning. They also point out that the "fat cats" will still be eligible for increased right to buy discounts announced by the Conservatives this week.

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