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Social housing tenants 'will be priced out of home areas' | Social housing tenants 'will be priced out of home areas' |
(about 1 hour later) | |
Many families in England could be forced out of their council homes and be unable to afford alternative housing in the same area, new research says. | Many families in England could be forced out of their council homes and be unable to afford alternative housing in the same area, new research says. |
Subsidised rents for households earning more than £30,000, or £40,000 in London, will be scrapped in April 2017. | Subsidised rents for households earning more than £30,000, or £40,000 in London, will be scrapped in April 2017. |
Social housing tenants will be asked to pay rent at or near market rates. | Social housing tenants will be asked to pay rent at or near market rates. |
Ministers say it "better reflects people's ability to pay" - but Labour and the Local Government Association say it would hit hard-working families. | |
The department for communities and local government argues that is "not fair that hard-working people are subsidising the lifestyles of those on higher than average incomes, to the tune of £3,500 per year". | The department for communities and local government argues that is "not fair that hard-working people are subsidising the lifestyles of those on higher than average incomes, to the tune of £3,500 per year". |
'Families penalised' | 'Families penalised' |
Housing Minister Brandon Lewis said people who could afford to pay more in rent "should do so" - but it would be graded, so that those on lower incomes would not have to pay full market rates. | Housing Minister Brandon Lewis said people who could afford to pay more in rent "should do so" - but it would be graded, so that those on lower incomes would not have to pay full market rates. |
"We have always said we would consider carefully how much more people pay as they move through the pay scales, once they get over £30,000," he told BBC Radio 5 live's Pienaar's Politics. | "We have always said we would consider carefully how much more people pay as they move through the pay scales, once they get over £30,000," he told BBC Radio 5 live's Pienaar's Politics. |
He said the government would "listen to what comes in before we make a final decision in the period ahead of us". | He said the government would "listen to what comes in before we make a final decision in the period ahead of us". |
According to the LGA-commissioned study, almost 60,000 households in England will not be able to afford to pay rents at the market rate or take advantage of the right to buy. | According to the LGA-commissioned study, almost 60,000 households in England will not be able to afford to pay rents at the market rate or take advantage of the right to buy. |
Councillor Peter Box, housing spokesman at the LGA, which represents hundreds of local councils in England, said: "Many social housing tenants across the country will be unable to afford market rents or take up the offer to buy their council home under this policy. | Councillor Peter Box, housing spokesman at the LGA, which represents hundreds of local councils in England, said: "Many social housing tenants across the country will be unable to afford market rents or take up the offer to buy their council home under this policy. |
"A couple with three children, earning £15,000 each a year, cannot be defined as high income. Pay to stay needs to be voluntary for councils - as it will be for housing associations. | "A couple with three children, earning £15,000 each a year, cannot be defined as high income. Pay to stay needs to be voluntary for councils - as it will be for housing associations. |
"This flexibility is essential to allow us to protect social housing tenants and avoid the unintended consequence of hard-working families being penalised, people being disincentivised to work and earn more and key workers, such as nurses, teachers or social workers, having to move out of their local area." | "This flexibility is essential to allow us to protect social housing tenants and avoid the unintended consequence of hard-working families being penalised, people being disincentivised to work and earn more and key workers, such as nurses, teachers or social workers, having to move out of their local area." |
Taxpayer subsidies | Taxpayer subsidies |
The LGA figures, compiled by the estate agent Savills, show that almost 215,000 social housing tenants will be affected by the "pay to stay" policy. | The LGA figures, compiled by the estate agent Savills, show that almost 215,000 social housing tenants will be affected by the "pay to stay" policy. |
The policy is expected to save £245m a year by 2019-20, ending a situation where higher-income social tenants benefit from taxpayer-funded subsidies of up to £3,500 per year. | The policy is expected to save £245m a year by 2019-20, ending a situation where higher-income social tenants benefit from taxpayer-funded subsidies of up to £3,500 per year. |
Former head of the civil service, Lord Kerslake, now a crossbench peer, will attempt to amend the housing bill, which is being scrutinised next week in the House of Lords, to place the scheme at the discretion of local authorities. | Former head of the civil service, Lord Kerslake, now a crossbench peer, will attempt to amend the housing bill, which is being scrutinised next week in the House of Lords, to place the scheme at the discretion of local authorities. |
The peer, who is now chairman of the Peabody Trust housing association, has warned that the proposals were part of a package that could "threaten the future of social housing". | The peer, who is now chairman of the Peabody Trust housing association, has warned that the proposals were part of a package that could "threaten the future of social housing". |
He told The Observer: "When this was originally discussed in the coalition government, it was intended to deal with the very small number of high earners on over £60,000. | He told The Observer: "When this was originally discussed in the coalition government, it was intended to deal with the very small number of high earners on over £60,000. |
"The current proposals will affect a lot more households with earnings of half that." | "The current proposals will affect a lot more households with earnings of half that." |
Labour's shadow housing minister John Healey said: "This new research backs Labour's concerns that this Tory 'tenant tax' could force thousands of working families from their homes. | |
"As the Housing and Planning Bill is debated in the House of Lords over the coming weeks, ministers should take a hard look at the effect their plans will have and use this opportunity to think again." | |
Are you affected by plans to raise social housing rents? Are you a 'higher income' tenant who could be priced out of your area? Email haveyoursay@bbc.co.uk with your stories. | Are you affected by plans to raise social housing rents? Are you a 'higher income' tenant who could be priced out of your area? Email haveyoursay@bbc.co.uk with your stories. |
Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also contact us in the following ways: |
Or use the form below | Or use the form below |