Council tenants on above £100,000 will be told to pay market rent

Housing Minister Grant Shapps is to announce the crackdown amid concern that hundreds of thousands of people are waiting for social housing while up to 6,000 tenants are in homes while pocketing a six-figure salary.

The move is being billed as part of the “most radical reform of social housing for a generation and will see Labour politicians and union chiefs among those who will be ordered to pay market rate under the “Pay to Stay” scheme. Mr Shapps said: “Labour turned a blind eye to the 5m people languishing on housing waiting lists that doubled under their watch. And they 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.”

The move came after Communities Secretary Eric Pickles used his conference speech yesterday to take a swipe at former Deputy Prime Minister John Prescott, the ex-Hull East MP, for using the Government credit card to “wine and dine” staff at his favourite Chinese restaurant, Mr Chu’s.

Confirming last week’s announcement that he will make funding available for councils to restore weekly bin collections, he also pledged to strengthen the Green Belt.

The coalition’s proposals to revamp planning laws leading to a presumption in favour of sustainable development sparked claims housing estates would be built on protected land.

But the Local Government and Communities Secretary vowed: “Our countryside is one of the best things that makes Britain great, and we will protect it.”

He also announced a crackdown on public sector staff who work full-time for trade unions while being paid by the taxpayer.

Mr Pickles said the move would save £250m a year.