RADICAL reforms planned for the housing benefit system could save Warrington more than £400,000 a year.

The Government plans to overhaul the fraud-riddled system in a bid to beat benefit cheats and save the country an estimated £1 billion every year.

Housing benefit payments in Warrington run at £21.5 million for the year, with more than 11,000 people receiving help to pay for their housing.

The council's benefit's fraud squad netted 200 cheats last year and they believe that the swindlers cost the town about £400,000.

Plans will be unveiled in a Green Paper at the end of the year when it is expected that housing benefit will be scrapped completely, instead tenants would receive help to pay their rent but would also have to contribute themselves.

Finance chiefs at the council say they are adopting a 'wait-and-see' approach until the full extent of the scheme is announced in the Green Paper.

Converted for the new archive on 13 March 2001. Some images and formatting may have been lost in the conversion.