Housing Minister John Healey has launched the second phase of the biggest council house building programme for almost two decades.

He also stated that councils must include details of how they will create new apprenticeship schemes if they expect to get a slice of Government cash.

Mr Healey wrote to all council leaders in England encouraging them to consider submitting bids to deliver around £180m of investment that could fund construction of a further 1,200 new council homes, create or safeguard 7,500 new jobs and over 180 apprenticeship schemes.

The Minister also added that he is keen to see bids that will see new council homes built to high energy efficiency standards, helping cut CO2 emissions and reduce energy bills for the families that live in them.

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The £180 million available for this second phase of the programme comes on top of money already allocated as part of the Prime Minister's £1.5bn Housing Pledge - announced as part of Building Britain's Future. This commitment will help build the homes the country needs and help people into jobs.

Successful second wave schemes will be announced later this year with construction beginning on the first of these sites by March 2010.

Mr Healey said: "I launch phase two of the biggest council house building programme for almost two decades. This is a real opportunity for councils to tackle the shortage of affordable homes in their communities as well as help young people get a career in building through the apprenticeship scheme. I'm asking all council leaders to consider how they might use this money to make a real difference to families looking for a home and local people looking for a career.

"These new council homes, along with the 2,000 plus homes I gave the go ahead to earlier this month, show how we are using the power of public investment to help Britain through the recession. It is helping build the homes we need and is a major boost to both business and employment in the construction industry."

(CD/BMcC)