THE Government has announced that Middlesbrough is to be one of ten councils chosen to spearhead a major shake-up of Housing Benefit.

Work and Pensions Secretary Andrew Smith said the scheme will give more power to tenants, cut fraud and help people back to work.

Under the plan, money will be paid directly to tenants.

This will create ''a simpler, fairer system,'' said Mr Smith.

He is inviting the councils to meet him to discuss the best way to put the initiative into action.

The key proposal is a new flat-rate standard local housing allowance for private sector tenants. Tenants who move to a cheaper property will be able to keep the difference between the rent they pay and this standard rate.