Companies exploiting welfare system by using residents as 'cash cows', BBC finds

Some private companies are making huge profits and exploiting the welfare system by receiving housing benefits on behalf of residents but failing to give them the support they are required to, BBC Panorama has found.

Property agents are drawing people into the taxpayer-funded system using social media videos that offer free rooms, PlayStation consoles and even holidays.

The system - called supported exempt accommodation (SEA) - is designed for people in the UK with additional needs, including former prisoners, people recovering from addiction and women fleeing domestic abuse. It provides housing along with care, support and supervision.

For many residents it works well to help them get back on their feet, but wanderers, governors and residents tell us parts of the system are being exploited.

There are often complicated, multi-layered financial and management arrangements in place.

Rather than going to residents, most welfare payments are made to non-profit registered providers. In many cases these providers then hire profit-making private companies to manage properties and deliver support.

Source: BBC News Health RSS (Open Press / Translated Full Text)