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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Residential Environmental Health Team Leader

The Royal Borough of Windsor & Maidenhead
£55,296 - £60,286 per annum
The role would suit an already experienced team leader, or an environmental professional Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Senior Housing Strategy Officer

The Royal Borough of Windsor & Maidenhead
£39,526 - £50,446 per annum
It will be part of a small team which has the primary responsibilities for key activities Maidenhead, Berkshire
Recuriter: The Royal Borough of Windsor & Maidenhead

Roadworker Apprentice - Level 2 (2 Posts)

Derbyshire County Council
16 - 17 £8.00 per hour, 18 - 20 £10.85 per hour and 21 and over £12.71 per hour.
You’ll gain experience in a service that maintains a large and complex highway network across urban Derby, Derbyshire
Recuriter: Derbyshire County Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.92 per hour
You will be a valued member of our team who will be reliable, dependable and have a strong work ethic. York, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner