Government to propose £60,000 ‘pay to stay’ limit
Plans to charge social tenants on high incomes more rent look set to be introduced at a lower than anticipated threshold of £60,000.
Housing minister Grant Shapps has previously suggested the government is keen on introducing a ‘pay to stay’ limit on household earning of around £100,000 a year. Tenants earning above this amount would be expected to pay higher rents than other tenants, or move out.
According to reports over the weekend a consultation to be launched next month will suggest the limit should instead by set at £60,000. Further details of how the scheme might work are expected in the consultation.
The measure appears to have the backing of the prime minister, with a Number 10 source that is quoted in several newspapers saying: ‘It’s not right that high earners benefit from taxpayer funded housing subsidy. Just as we have introduced a cap on housing benefit and welfare payments to make the system fairer, now we’re acting on social housing too.’
A Communities and Local Government department spokesperson said: ‘The department intends to consult on a “pay to stay” scheme to allow landlords to charge high earning tenants a higher rent to stay in their social homes. The consultation paper will be published shortly.’