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

Virtual School Advisory Teacher

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
Virtual School Advisory Teacher
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Business Architect

Essex County Council
£60049 - £70645 per annum + Hybrid working, Flexible working
Please note this vacancy is available as a fixed term contract or secondment opportunity for up to 12 months.Join a Council Shaping the Future of Pub England, Essex, Chelmsford
Recuriter: Essex County Council

Electrical Manager

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take on a pivotal leadership role in managing electrical systems across Derbyshire’s highway network? Derbyshire
Recuriter: Derbyshire County Council

Senior Service Product Manager

North Yorkshire Council
£47,181 - £51,356 per annum
Do you have experience in product management are looking to build your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner