Thousands of tenants live in council houses even though they earn more than 100,000

The six-figure council house tenants: 6,000 who earn more than 100,000 can stay in home 'if they pay market rent'

Thousands of tenants living on six-figure incomes in council houses subsidised by the taxpayer are to be thrown out unless they agree to pay far higher rents.

A Whitehall analysis leaked to the Daily Mail suggests there are 15,000 tenants in social housing even though they have household incomes of more than 80,000 – with 6,000 earning more than 100,000.

Ministers are to target those who could afford to buy a house privately but instead choose to continue living in council homes at a vastly reduced rent.

Sitting pretty: As a minister Frank Dobson lived in a three-bedroom flat in his London constituency in the council block pictured right

Under plans being drawn up, they are to be hit with demands to pay the market rate or move out – a change which would save the taxpayer more than 100million.

Most are expected to decide to leave their properties rather than agree to massive increases in what they pay, since they could probably expect to live in better areas if they were paying the market rate.

Almost a fifth of council households – some 720,000 – earn more than the national average wage. For some London properties, tenants would have to pay 70,000 a year more than they are charged at the moment if they were renting their homes on the open market.

Ministers believe voters will be ‘staggered’ to learn that people on such high incomes enjoy council homes subsidised by the taxpayer.

The Conservatives have suggested they want to end the principle of council housing for life, but measures have been resisted by their Liberal Democrat Coalition partners. Under the current system, once granted tenancy, a resident can keep hold of a council house for life, regardless of whether their financial circumstances change.

Ministers are now understood to be considering introducing a ‘pay to stay’ policy which would apply to any households earning more than 80,000.

Anyone not prepared to pay the full market rent would be evicted. The money saved would be ploughed back into housing those on waiting lists, which doubled under Labour.

Housing minister Grant Shapps said higher earners on six-figure salaries can keep their social home as long as they pay market rent

It is expected that the policy will apply to the two top earners in a house – in other words, either where one earner is on 80,000 or two are each on 40,000.

Tories highlight the example of Frank Dobson, the Labour MP who was still living in his council home, despite becoming a Cabinet minister under Tony Blair and drawing a six-figure salary.

Mr Dobson became a minister while living in a council flat in his London constituency. The three-bedroom flat is in a mansion block where properties once belonging to the council sell for between 900,000 and 1million.

Though he still earns an MP’s salary of 66,000 a year, he claimed last year that he could not afford to rent privately.

‘Market rents in our area are phenomenal,’ he said. ‘I wouldn’t be able to afford it.’

He added: ‘Very large numbers of people, who in any other part of the country would be regarded as reasonably well off, are not comfortably off in London because of house prices and rents, which are insane.’

Housing minister Grant Shapps said: ‘For higher earners on six-figure salaries we’re introducing “pay to stay” with a simple message: “You can keep your social home as long as you pay a market rent so that we can use your cash to build homes for the most vulnerable people on the waiting list”.’

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Thousands of tenants live in council houses even though they earn more than 100,000