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

Travel Trainer (Ealing)

Essex County Council
Up to £28621.00 per annum
Travel Trainer (Ealing)Permanent, Full Time£28,621 per annumLocation
Recuriter: Essex County Council

Project Support Officer - Planned Works

Royal Borough of Greenwich
SO1 - £39,519 to £40,575
The post holder will support the Planned Works Team to ensure that projects are effectively coordinated London (Central), London (Greater)
Recuriter: Royal Borough of Greenwich

Business Change Accountant

Royal Borough of Greenwich
PO3 - £47,262 to £50,676
Our Accountancy Partnering Service provides accounting and business support across a range of the Council’s Directorates London (Greater)
Recuriter: Royal Borough of Greenwich

Electrical Supervisor - QS

Royal Borough of Greenwich
PO4 - £50,676 to £53,919
Supporting the Electrical Delivery Manager and Supervisors you will play an instrumental role London (Greater)
Recuriter: Royal Borough of Greenwich

Family Practitioner

Middlesbrough Council
£37,563 - £39,481
This role is rewarding and requires you to work with vulnerable children and their families Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council
Linkedin Banner