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

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner