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

Graduate Highways Engineer

West Northamptonshire Council
£31,324 - £33,017
This is a fantastic opportunity to begin a career that shapes the way communities grow and move. We’re looking for a motivated, analytical, and curious individual to join our Highways Development Management team at West Northamptonshire Council Northampton
Recuriter: West Northamptonshire Council

Graduate Trainee - Procurement

Essex County Council
£28090.00 - £33047.00 per annum
Graduate Trainee - ProcurementFixed Term, Full Time£28,090 up to £33,047 per annumLocation
Recuriter: Essex County Council

Assistant Director - Resources - South Yorkshire Pensions Authority

South Yorkshire Pensions Authority
£93,559 to £102,865 plus benefits and relocation support
We are looking forward to recruiting a new Assistant Director - Resources who will further develop our thinking and help us realise our ambitions. Barnsley, South Yorkshire
Recuriter: South Yorkshire Pensions Authority

Part Time Business Support Assistant

Essex County Council
Up to £25081.00 per annum
Part Time Business Support AssistantFixed Term, Part Time£25,081 per annum (Full Time Equivalent)Location
Recuriter: Essex County Council

Senior Highways Maintenance Technician WMF2510e

Westmorland and Furness Council
£34,434 - £35,412
In this role, you will work as part of the Furness area Highways team, preparing, designing and processing highway Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner