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You can find the current article at its original source at https://www.theguardian.com/money/2016/nov/04/pay-to-stay-uncertainty-leaves-tenants-too-little-time-says-council
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| Pay-to-stay uncertainty leaves tenants too little time, says council | |
| (35 minutes later) | |
| Thousands of council tenants could face just weeks’ notice of rent hikes if new pay-to-stay rules are not confirmed soon, an east London council has warned. | Thousands of council tenants could face just weeks’ notice of rent hikes if new pay-to-stay rules are not confirmed soon, an east London council has warned. |
| Under changes contained in the Housing and Planning Act, tenants in social housing with household incomes of more than £40,000, and £31,000 outside the capital, will have to pay higher rents if they want to stay in their homes. | Under changes contained in the Housing and Planning Act, tenants in social housing with household incomes of more than £40,000, and £31,000 outside the capital, will have to pay higher rents if they want to stay in their homes. |
| Research has suggested that 70,255 households in England and Wales will be affected and face average rent increases of £1,065 a year. | Research has suggested that 70,255 households in England and Wales will be affected and face average rent increases of £1,065 a year. |
| The increases are due to be introduced in April 2017, but the government has not set out the details of the change, or how the extra rent will be collected. | The increases are due to be introduced in April 2017, but the government has not set out the details of the change, or how the extra rent will be collected. |
| Labour-led Hackney council said that this meant it would have just a few months to write to about 20,000 people living in its homes to ask what their income is, calculate increases based on that and give the affected residents notice of rent rises. | Labour-led Hackney council said that this meant it would have just a few months to write to about 20,000 people living in its homes to ask what their income is, calculate increases based on that and give the affected residents notice of rent rises. |
| That could leave families facing little time to adjust household finances to pay any increase, the council said. | That could leave families facing little time to adjust household finances to pay any increase, the council said. |
| Under the government’s rules, if a tenant does not respond to a request for information about their income, councils may be forced to increase their rent to market level. | Under the government’s rules, if a tenant does not respond to a request for information about their income, councils may be forced to increase their rent to market level. |
| Hackney council said that the government should delay the implementation of the policy for a year to minimise the risk of errors that could leave families paying large increases they should not have to. It estimates it will spend £500,000 to set up and run the new system. | Hackney council said that the government should delay the implementation of the policy for a year to minimise the risk of errors that could leave families paying large increases they should not have to. It estimates it will spend £500,000 to set up and run the new system. |
| Philip Glanville, mayor of Hackney, said: “Not only is this tenant tax a damaging policy that will penalise low-paid working families, it is at risk of becoming a shambles as ministers rush to bring in these changes without any idea of how the system will work. | Philip Glanville, mayor of Hackney, said: “Not only is this tenant tax a damaging policy that will penalise low-paid working families, it is at risk of becoming a shambles as ministers rush to bring in these changes without any idea of how the system will work. |
| “That could leave council tenants already struggling to make ends meet facing a bureaucratic nightmare, and the threat of huge increases in their rent with just a few weeks’ notice.” | “That could leave council tenants already struggling to make ends meet facing a bureaucratic nightmare, and the threat of huge increases in their rent with just a few weeks’ notice.” |
| Under the plans, for every pound a household earns over £40,000, they will pay 15p a year more in rent, up to a cap based on market rate. | Under the plans, for every pound a household earns over £40,000, they will pay 15p a year more in rent, up to a cap based on market rate. |
| Councils have warned that nearly one in 10 social tenants in London and the South-east can expect rent rises, with those living in the capital facing an average monthly rent rise of £132. | Councils have warned that nearly one in 10 social tenants in London and the South-east can expect rent rises, with those living in the capital facing an average monthly rent rise of £132. |
| The Local Government Association, which represents councils in England and Wales, has previously urged the government to rethink the policy. | The Local Government Association, which represents councils in England and Wales, has previously urged the government to rethink the policy. |
| It said councils needed to invest millions in new IT systems, hire new staff and write to more than 1 million social housing tenants to try and understand household income and approve individual tenant bills by January. | It said councils needed to invest millions in new IT systems, hire new staff and write to more than 1 million social housing tenants to try and understand household income and approve individual tenant bills by January. |
| Nick Forbes, LGA senior vice chair, said: “Pay-to-stay will affect thousands of social housing tenants across the country, with the average affected households seeing their rents rise by £1,065 a year. | Nick Forbes, LGA senior vice chair, said: “Pay-to-stay will affect thousands of social housing tenants across the country, with the average affected households seeing their rents rise by £1,065 a year. |
| “For families, this will cause anxiety, uncertainty and costs. For councils it will generate bureaucracy and new administrative costs and complexities. And at the end of it, for government, it will generate nowhere near the financial return it had originally expected,” he said. | “For families, this will cause anxiety, uncertainty and costs. For councils it will generate bureaucracy and new administrative costs and complexities. And at the end of it, for government, it will generate nowhere near the financial return it had originally expected,” he said. |
| He added: “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.” | He added: “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.” |
| A spokesman for the Department of Communities and Local Government said: “It’s simply not fair that hardworking people are subsidising the lifestyles of those on higher-than-average incomes, including tens of thousands of households earning £50,000 or more. | A spokesman for the Department of Communities and Local Government said: “It’s simply not fair that hardworking people are subsidising the lifestyles of those on higher-than-average incomes, including tens of thousands of households earning £50,000 or more. |
| “Pay-to-stay better reflects tenants’ ability to pay, while those who genuinely need support continue to receive it. It means households in London earning £41,000 would see rents rise by just a couple of pounds a week.” | “Pay-to-stay better reflects tenants’ ability to pay, while those who genuinely need support continue to receive it. It means households in London earning £41,000 would see rents rise by just a couple of pounds a week.” |