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

Care Support Assistant (Obelisk House)

West Northamptonshire Council
£26,083
Obelisk House provides exceptional levels of support in residential and Dementia care. It is situated in a residential suburb in Northampton and it offers a wonderful living environment in which our residents can enjoy an enhanced quality of life. We ha Northampton
Recuriter: West Northamptonshire Council

Revenues and Recovery Manager - Braintree District Council

Essex County Council
£48945.0000 - £53082.0000 per annum
Revenues and Recovery Manager - Braintree District Council Full-Time, Permanent 37 Hours per Week £48,945 - £53,082 per annumClosing Date
Recuriter: Essex County Council

Part Time Digital Skills Tutor

Essex County Council
£15 - £15.74 per hour
Part Time Digital Skills TutorPermanent, Part Time£30,377 per annum, full time equivalent / equal to £15.74 per hourLocation
Recuriter: Essex County Council

Head of Regeneration and Growth

Cherwell District Council
£68,930.00 - £73,320.50 per annum
We need someone with experience, drive and commitment to lead and manage the service. Banbury, Oxfordshire
Recuriter: Cherwell District Council

Passenger Assistant

North Yorkshire Council
£24,796 - £25,989 per annum pro rata
They are a team of over 300 drivers and passenger assistants that operate at locations throughout North Yorkshire. North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner