Section: Research & Surveys

'Pay to Stay' Will Discourage People From Increasing Earnings or Finding Work

Posted 02.12.15

The Government's 'pay to stay' policy will discourage people living in social housing from increasing their earnings or finding work, housing professionals fear.

Pay to stay, which was announced in the summer budget, will see social housing tenants in England with a household income of £30,000 or more (£40,000 in London) paying higher rents.

In a survey of Chartered Institute of Housing (CIH) members, 77% of people who responded said the policy was very likely or likely to discourage tenants from increasing their earnings.

In addition:

Almost all of the CIH members who responded to the survey (97.8%) said the policy was very likely or likely to increase administration costs for landlords - potentially cancelling out the extra income it will generate for housing associations. Local authorities have been told that they will have to give any extra income to the Treasury, which CIH has argued is unfair.

Overall, 62% of CIH members who responded to the survey said they disagreed with the policy.


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Reporting on December 2015

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