Serious Internal Housing Fraud Uncovered at Newham Council
A staff member at Newham Council has been discovered manipulating housing allocation systems to improperly assign 35 social homes to people who were not eligible for them, the local authority has revealed.
How the Fraud Was Discovered
The "serious internal housing fraud" was brought to light thanks to a whistle-blower who alerted the council's fraud team. According to a council spokesperson, an internal investigation was immediately launched after the report was received.
When the housing officer suspected of the manipulation was confronted, they "immediately resigned" from their position. The council confirmed it is now "working with the police to pursue a criminal investigation" into the matter.
However, the Metropolitan Police has stated there is "currently no active police investigation" underway, creating some uncertainty about the immediate legal proceedings.
Broader Context: Newham's Housing Crisis
This fraud discovery comes at a critical time for Newham Council, which is facing an escalating temporary accommodation crisis. Temporary housing is essential for preventing homelessness among families and vulnerable people.
The borough currently has the highest number of people in temporary accommodation in England, with more than 7,500 households requiring this support.
The financial burden is substantial, costing the council approximately £100 million annually, with projections indicating this will grow by £12.8 million next year and potentially reach £140 million by 2028.
Council's Response and Policy Changes
In response to the housing pressures, council leaders agreed last month to implement a new policy that could see people placed in temporary accommodation outside the borough.
The policy outlines that:
- Those with "a clear need to remain within commuting distance of Newham" could be placed up to 90 minutes away by public transport
- Others might be placed even further afield, potentially outside London altogether
- Homes within the borough or within 30 minutes by public transport will be prioritised for residents with health issues or vulnerable children in the household
The council emphasised that the availability of suitable, affordable homes in Newham remains "insufficient" to meet current demands.
The fraud allegations were detailed in a report on the council's anti-fraud work, scheduled for discussion by its audit and governance committee. As this remains a live legal case, the council has stated it cannot comment further while recovery efforts for the 35 improperly allocated properties continue.
