The Government’s much maligned pay to stay policy faced a hat-trick of defeats in the House of Lords yesterday.
Originally, the proposals would have forced councils to charge the full market rent to households earning £40,000 in London and £30,000 outside the capital.
However, peers passed an amendment, which raised both thresholds by £10,000.
A further change to the Bill gave councils the discretion to ignore the measure, rather than making it mandatory.
The Government was forced to concede a third time after Lords voted to dampen the taper from 20p in the pound to 10p, which would lessen the impact on lower-paid families.
The Government has now suffered six defeats in the House, with more expected in the final two days of report.
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