John Prescott's plan to transfer one million council homes to private not-for-profit social landlords will cost the taxpayer an extra £1.3 billion, the National Audit Office claims today.

Edward Leigh, the Conservative chairman of the Commons public accounts committee, said: "The transfer of a million homes over the next five years will cost the taxpayer an estimated £1.3 billion more than paying local authorities to carry out the same amount of renovation.

"The Office of the Deputy Prime Minister needs to be sure that the benefits justify spending this sum."