Carrots not sticks for tenants

Policy influenced by weaker economy

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Showpiece proposals to throw work-shy tenants out of social housing are predicted to be knocked aside by the nose-diving economy.

Housing minister Caroline Flint floated the controversial proposal that council tenants who do not accept offers of jobs or training should lose their homes when she was appointed to the post in February.

Ms Flint said she wanted to crack down on the "no one works round here" culture. But those close to her said the housing reform green paper, due in November, was more likely to focus on incentives to reduce worklessness, rather than punitive measures amid concern that there will be fewer jobs.

A source close to the minister said: "We are facing rising unemployment, but the problem is not unemployed people, it is those that will not take the jobs and skills training that is on offer. Rather than punitive measures, I think the government's efforts will focus on incentivising measures."

Incentives could involve giving council tenants greater mobility, for instance by making it easier for them to move closer to where they work or their child's school, the source predicted.

National Federation of Arm's-Length Management Organisations policy officer Gwyneth Taylor said: "We expect the green paper will focus on tenancy, worklessness and a more holistic approach to housing, with local authorities taking a lead role.

"But the current economic climate could influence it. We cannot be ignore that there will be more people unemployed going forward."

Chartered Institute of Housing head of policy Abigail Davies agreed that the economic crisis would influence the direction of the paper.