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.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Director of Education and Learning

Lambeth Council
Up to £141,000
We're looking for an exceptional leader to become our next Director of Education and Learning. Lambeth, London (Greater)
Recuriter: Lambeth Council

Head of Adult Services

Neath Port Talbot County Borough Council
£89,565 - £98,298
As a member of the Council's Corporate Leadership Team, you will provide strategic leadership across a diverse portfolio of services Neath Port Talbot (Castell-nedd Port Talbot)
Recuriter: Neath Port Talbot County Borough Council

Deputy Director of Quality and Practice

Stoke-on-Trent City Council
£101,978 - £107,137
You will help turn our Families First Partnership ambitions into excellent frontline practice Stoke-on-Trent, Staffordshire
Recuriter: Stoke-on-Trent City Council

Service Directors

Cambridgeshire County Council
Up to £137,000
To succeed, you’ll already have an impressive and comprehensive track record of effectiveness, with particular experience in service improvement Cambridgeshire
Recuriter: Cambridgeshire County Council

Director of Digital, Data and Technology

Royal Borough of Greenwich
circa £130,000
As our new Director, you will be responsible for shaping and delivering digital transformation across the council and beyond. London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner