Home > Update: Pay to stay – new proposals
Should high earners pay full market rent? and how is the cap to be monitored? are just two questions coming out of the Government’s ‘pay to stay’ proposal.
Plans to charge social housing tenants on higher incomes increased rent have been backed by the Government and are expected to proceed. The Housing Minister Grant Shapps has announced the proposed ‘pay to stay’ scheme which would mean that social housing families earning over £60,000 have to pay full market rent.
The anticipated threshold was higher than this, it was originally thought to be around £100,000. It is now expected that a government consultation will suggest a range of options, the lowest being £60,000.
Research shows that as many as 6,000 social rented homes in England alone are lived in by people who earn a combined income of more that £100,000.
A consultation paper suggested the levels of cuts and expanding on exactly how the scheme will work will be published next month. It will be interesting to see how tenant’s income levels are to be monitored and policed.
Posted on 24.05.12
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