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.

Devolution and putting place first image

Devolution and putting place first

The real lesson of Andy Burnham's Makerfield success, argues Dr Jonathan Carr-West, is that place – not personality – is the key to Britain's future.
SIGN UP
For your free daily news bulletin
Highways jobs

Housing Revenue Account (HRA) Strategic Financial Advisor

London Borough of Richmond upon Thames and London Borough of Wandsworth
£48,873 - £59,220 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Team Manager

Cheshire East Council
£48,072 - £54,994
At Cheshire East Council we are resident, and partner focused with a vision to enable prosperity and wellbeing for all. Crewe, Cheshire
Recuriter: Cheshire East Council

Youth Worker

Cheshire East Council
£31,537 - £34,434
This role of the Youth Worker is assisting the Senior Youth Worker with the day-to-day delivery of our targeted youth work programme Cheshire
Recuriter: Cheshire East Council

Youth Support Worker

Cheshire East Council
£25,583 - £25,989
This role supports the Senior Youth Worker and Youth Work to plan, deliver and evaluate targeted diverse youth work programmes Cheshire
Recuriter: Cheshire East Council

Best Start for Life Assistant

Cheshire East Council
£25,583 - £25,989
An exciting opportunity has become available to join Cheshire East Council as a Best Start for Life Assistant. Cheshire
Recuriter: Cheshire East Council
Linkedin Banner