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.

SIGN UP
For your free daily news bulletin
Highways jobs

Homelessness Prevention and Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 to £47,229 per annum
We are looking for a capable and ambitious individual keen to help families and individuals facing homelessness to help support them in their homelessness journey and adhere to legislative guidance as well as policy and procedures. Who are we looking fo Twickenham
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Waste Management Officer - North Herts Council

Essex County Council
Up to £13.5000 per hour
Waste Management Officer - North Herts CouncilGrade 4 - £13.50 PAYE37 per week2-3 Months ContractImmediate StartLocation
Recuriter: Essex County Council

Assistant Transport Planner

Oxfordshire County Council
£31537 - £34434
Are you looking for a varied and challenging role which really gets you thinking and makes a difference for the lives of communities across Oxfordshire. If so, this might be the role for you. The role sits within the Transport Strategy and Policy team and Oxford, County Hall
Recuriter: Oxfordshire County Council

Customer Experience Manager - Town Halls

Kirklees Metropolitan Council
£34,434- £37,280
Our Town Halls are at the heart of civic, cultural and commercial life, supporting the Council’s daily business. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Residential Workers

Durham County Council
Grade 7 £30,024 - £33,699
Residential Workers - Opportunities are available across the County Durham Area Salary
Recuriter: Durham County Council
Linkedin Banner