Robert Oxley, of the Tax Payers’ Alliance, said the case showed why benefit reform was ‘necessary – to ensure that there is a safety-net for the poorest and most vulnerable, while protecting taxpayers against paying for big, expensive houses’.
A spokesman for Islington Council said: ‘Islington has a desperate shortage of affordable homes and is a high-value area.
The family use housing benefits to pay a heavily discounted rent for the four-storey house in Islington – close to Tony Blair’s former home – which boasts a variety of period features, including chandeliers and wood flooring.
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This council home has been owned by the council for many years and is currently let to an Islington family who were in great housing need.’ Islington council is converting this £1.8m property into one house after it had been split into two flats.