Thousands of cheats who are keeping homeless and needy families out of scarce social housing will be targeted in a new Audit Commission initiative.

The public spending watchdog is extending the reach of its National Fraud Initiative (NFI) to help detect fraudsters who illegally occupy or sublet multiple council and housing association flats and homes.

The move extends the Commission's National Fraud Initiative. This is the programme that since 1996 has been matching data held by councils, fire and police authorities and the Government to prevent and detect fraud. To date an estimated £500 million of fraud and overpayments have been identified by the initiative. Data matching is strictly controlled to ensure compliance with data protection and human rights legislation. The NFI has attracted international praise and attention.

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Steve Bundred, Chief Executive of the Audit Commission said: "For every illegal tenancy there is a homeless tenant or family who stands to lose out. This is because housing that should have been theirs is occupied illegally by some one else holding two or more tenancies. It also represents a waste of taxpayers' money.

"We are delighted to be working with government and local authorities on this initiative to root out the fraudsters who exploit the social housing system for personal gain. Extending our National Fraud initiative will help to prevent this type of fraud occurring in the future."

(CD/KMcA)