Key workers plan 'wastes cash'

Large sums of cash have been wasted on getting too few key workers onto the property ladder, MPs have said.The Committee of Public Accounts said inefficiencies in the Government's HomeBuy scheme had led to poor targeting of help, with tens of thousands in genuine need missing out.And MPs warned that there is a genuine risk low-cost home ownership assistance could increase demand for houses in property 'hot spots' and drive prices up further if misdirected.Around £500 million is spent annually on helping people onto the property ladder through the HomeBuy scheme.It helps households purchase a share of a house with the option of increasing the size of this share to full ownership.However, poor targeting and insufficient controls are allowing less deserving individuals to gain assistance at the expense of households that are genuinely in need, the committee said.Edward Leigh MP, chairman of the Committee of Public Accounts, said: "Increasing the level of home ownership among low income and other priority groups is a highly desirable social objective."With house prices rising at a greater rate than increases in average earnings, however, a growing number of people cannot afford to buy their own places - especially those trying to buy for the first time."But inefficiencies and poor targeting of low cost home ownership assistance are wasting large amounts of money. And information on the effectiveness of the assistance is thin."He said the Department for Communities and Local Government is in the dark over the effect of its assistance on local housing markets - in particular the extent to which it could actually drive up house prices.Mr Leigh said: "This is a well-meaning scheme but, without much tighter managerial grip and better information on how the money is being used, the first rung of the home ownership ladder will remain beyond reach for many needy families."Liberal Democrat housing spokesman Dan Rogerson said: "The Government has clearly failed to provide enough affordable housing but has no idea why its policies aren't working."Ten years of a Labour Government have produced a crisis in affordable social housing. Gordon Brown only made vague promises in the Budget last week, but the thousands of young people struggling to get on the housing ladder need action now."Housing Minister Yvette Cooper disagreed saying: "This analysis is out of date and doesn't take account of the full benefits of shared ownership schemes, nor the ongoing improvements being made to them."Nearly 80,000 households have already been helped to get a foot onto the housing ladder, and we will double this by 2010 as a result of improvements to the scheme."© Independent Television News Limited 2007. All rights reserved.

ITN | March 27, 2007

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