Proposal is part of Housing Bill, but councils will not have duty to provide designated areas

The Housing Corporation will pay registered social landlords to build and manage Gypsy and Traveller sites as part of a cross-party deal, Housing Today has learned.

The measure will be added to the Housing Bill, which is now in committee stage at the House of Lords.

It will form part of a shake-up of provision for Gypsy and Traveller sites, to be unveiled by the ODPM in autumn.

The ODPM will not, however, insist that councils provide sites for Gypsies – formerly a statutory duty but revoked in the 1994 Criminal Justice Act.

The changes follow growing concern at the increasing number of illegal Gypsy sites and a campaign to restore councils’ statutory duty.

Labour peer Lord Eric Avebury has tabled an amendment to the Housing Bill calling on the government to reinstate the obligation on local authorities.

But a source said the ODPM would instead launch a consultation calling for the provision of Gypsy and Traveller sites to be treated as a housing issue rather than a planning problem.

This means councils would be forced to take account of Gypsies and Travellers in their housing needs assessments.

“This should bypass the need for placing a statutory burden on councils, with the deeply unpopular cost to the taxpayer that that implies,” the source said.

There are 2000 illegal Gypsy and Traveller sites across England.

A 2002 report for the ODPM estimates that 4000 legal sites need to be provided by 2007.

Registered social landlord Novas-Overtures manages nine legal sites. Its service development manager for Travellers, John Wilson, said: “We’d be happy to be part of a new scheme, but we still feel a statutory duty for local authorities is needed. At the moment it’s too easy for them to miss Travellers out.”

The ODPM is also considering whether to set criteria for sites, including distance from schools.

Housing minister Keith Hill refused to comment on the measures under consideration. “There’s nothing we can say at the moment,” he said. “But the issue is highly salient and we are always considering what changes we need to make to the Housing Bill.”

The corporation was not available for comment.