Section: Housing Management
Consultation on Proposed 'Pay to Stay' Scheme Published
Posted 09.10.15
The Government has published consultation on its proposed legislation for a 'pay to stay' scheme for social housing tenants.
It reflects the Government's view that subsidised rent for social housing should go to those people who genuinely need it.
The key points in the consultation are:
- Social housing tenants with household incomes of £40,000 and above in London, and £30,000 and above in the rest of England, will be required to pay an increased level of rent for their
accommodation if their rent is currently being subsidised below market rent levels.
- This will build on the current 'pay to stay' policy which is available to local authority and housing associations to operate voluntarily.
- Money raised by local authorities through increased rents will need to be returned to the exchequer to contribute to deficit reduction. Housing associations will be able to use the additional income to reinvest in new housing.
- The starting assumption is that the policy will operate in broadly the same way as the current Pay to Stay policy.
- The Government will use primary legislation to bring forward powers to implement the policy and ensure it is in place from April 2017 onwards.
Click here to read the consultation document.
