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

Fostering Panel and Data Performance Advisor

Essex County Council
£55892.0000 - £69241.0000 per annum
Fostering Panel and Data Performance AdvisorPermanent, Part Time£55,892 to £69,241 to per annum (full time equivalent) Location
Recuriter: Essex County Council

Freedom of Information (FOI) Officer - Braintree

Essex County Council
£32319.00 - £36900.00 per annum
Freedom of Information (FOI) Officer - Braintree District CouncilBraintree District CouncilPermanent, Full Time£32,319 up to £36,900 per annumLocation England, Essex, Braintree
Recuriter: Essex County Council

Corporate Director - Planning

Dorset Council
£97,966 - £126,181
Do you share our ambition for Dorset? Dorset
Recuriter: Dorset Council

SETDAB Senior Communications Officer

Essex County Council
£37435.0000 - £44041.0000 per annum
SETDAB Senior Communications OfficerFixed Term, Part Time 28 Hours Per Week£37,435 to £44,041 Per Annum Full Time EquivalentLocation
Recuriter: Essex County Council

SEL Fostering Hub Programme Manager

Royal Borough of Greenwich
PO6 (£54,267 - £57,402)
The role will provide strong programme management oversight, ensuring projects are well planned, effectively delivered London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner