Council officials have launched a joint investigation with Wolverhampton City Council, after an Echo story revealed travellers left the Midlands to set up camp in Crays Hill.

Basildon Council leader Malcolm Buckley is in urgent talks with counterparts in Wolverhampton over our revelations about the Dale Farm site last week.

He said information had also been passed to the Department for Work and Pensions, which is investigating possible benefit fraud.

Mr Buckley said: "Our officers are liaising with Wolverhampton.

"Depending on the outcome, we will assess what action is needed, if any. Our housing department will be looking at claims made by travellers at Dale Farm for homelessness, to make sure they are valid.

"There could be implications if people hold tenancies up there while making homelessness claims in Basildon."

Mr Buckley also said the council would find out of if any new information it unearthed could be passed to planning inspector Ruth MacKenzie, who chaired last week's public inquiry into the site.

A Department for Work and Pensions spokesman said: "We take all allegations of benefit fraud very seriously and will investigate where appropriate."

David McPherson-Davis, Ramsden Crays Parish Council chairman, has forwarded the Echo's expose to secretary of state Ruth Kelly, who will have the final say over the site's future.

He is calling for a joint agency investigation into travellers' finances at Oak Lane and wants to know why they were granted legal aid for the inquiry when many ran companies in Europe.

Reports from visitors to the side said many plots were boarded up and closed off with barbed wire, while occupants were away working on the continent.

Campaigner Grattan Puxon claims many have block paving companies in France, Germany and Spain, and travel there to work, leaving behind only older relatives and children.

Essex County Council has confirmed it has paid for the London Care agency to look after elderly travellers while their relatives are away.

Mr McPherson-Davis said: "A Basildon Council report showed most families received benefits and hardly any men were registered living at the site.

"We know the latest inquiry was funded by legal aid. It now appears a number of men are apparently in gainful employment. This warrants investigation."