"NEIGHBOURS from hell" will be stripped of their housing benefit under proposals that could become law by the end of the year.

The Government has insisted people who inflict misery on their neighbours should no longer enjoy what ministers call a "subsidy from the taxpayer".

Now Swindon Council has been asked to put forward its views on how the controversial scheme should be put in practice.

One option is for housing benefit to be docked from anyone who is convicted of an offence involving anti-social behaviour, but a separate proposal favoured by ministers would give councils the power to act after receiving complaints from neighbours.

Council leader Mike Bawden (Con, Old Town and Lawns) - Pictured- said: "I believe there should be maximum discretion for local authorities and would feel comfortable if the council was given the necessary power to act. It's vitally important that residents don't cause undue hassle to their neighbours.

"Everyone has a social requirement to ensure that good harmony exists between all residents."

But critics say the proposals breach human rights and would make vulnerable people homeless increasing the problem of anti-social behaviour.

The council pays housing benefit to tenants on low incomes depending on their earnings, savings, age and other benefits received. It is paid up to the level of the "eligible rent" that the council considers appropriate for a particular property.

Andrew Smith, the Work and Pensions Secretary, added: "The Government strongly believes in the principle that state welfare should combine rights with responsibilities.

"The rights we gain from civil society including the right to financial support when we need it must be balanced by our duty to behave responsibly towards our fellow citizens.

"The aim of a housing benefit sanction would be to provide a workable measure that could be applied swiftly and fairly in response to such behaviour."

He added that any sanctions would have to avoid excess bureaucracy, be accepted as fair and not increase poverty.

The Government was forced to back track on similarly controversial plans to dock child benefit from the parents of persistent truants and troublemakers. Ministers are determined to target benefits after becoming frustrated with the reluctance of the courts to use anti-social behaviour orders against unruly tenants.

The consultation ends in August, which could allow the sanction to be introduced as part of the Anti-Social Behaviour Bill currently before Parliament.

Andy Albinson (Con, Dorcan), Swindon Council's lead member for housing, said: "Housing benefit is a complex issue and the council would have to look at all the options."