Laura Sharman 30 August 2016

Councils facing bill of millions to implement Pay to Stay policy

Councils will be forced to invest millions in new IT systems and staff in order to implement the government’s new Pay to Stay policy by April 2017, new research has warned.

The Local Government Association (LGA) said the new policy – which will see people on a higher income paying closer to market rents – will be impossible to implement in time due to the administrative complexities involved.

The LGA found more than 70,000 social housing tenants will be facing rent increases of an average £1,000 a year under the policy. Councils will need to write to social housing tenants to explain the changes, as well as approving individual tenant bills by January.

Figures produced for the LGA show the increased rents is likely to generate £75m a year, despite the Government originally forecasting returns of £365m in 2017/18.

Cllr Nick Forbes, LGA senior vice chair, said: ‘Pay to Stay sounds straightforward but it is a policy with initially unseen complexities, and which could generate large numbers of costly legal appeals and challenges from tenants.

‘The Government has committed that councils will be able to keep reasonable administrative costs. In many local areas, these costs will outweigh the additional rent collected leaving little or no extra income for the Treasury to keep, and leave the councils out of pocket.

The LGA is calling on the Government to allow councils to decide if they would like to introduce Pay to Stay for their tenants, or at least delay implementation to allow councils to pilot different ways of introducing it.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Park Operations Assistant - Weald Country Park

Essex County Council
Up to £25959.0000 per annum
Park Operations Assistant - Weald Country ParkPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Electoral Services Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£30,225 - £42,888 per annum
Electoral Services Officer�... Twickenham, Middlesex
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Group Leader- Planning Policy and Strategy

Kirklees Metropolitan Council
£54,495 to £58,462
As the Planning Policy and Strategy Group Leader, you will have specific responsibility for directing and overall management Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Relief Cleaner

North Yorkshire Council
£13.28 - £13.28 per hour
You will be a valued member of our team who will be reliable, dependable and have a strong work ethic. Selby, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.47 per hour
You will be a valued member of our team who will be reliable, dependable and have a strong work ethic. Easingwold, York
Recuriter: North Yorkshire Council
Linkedin Banner