'Pay to Stay' housing scheme dropped

The local Lib Dems have welcomed the Government's decision to make the 'Pay to Stay' scheme for Council housing tenants earning over a certain income will now be voluntary, not compulsory.

The Housing and Planning Act, currently working its way through Parliament, was going to require local authorities to charge tenants with a household income in excess of £30,000 a higher rent than they currently pay. However, in the run up to the Autumn Statement, the Government has conceded its plans were misguided and will no longer force councils to charge social housing tenants to 'Pay to Stay'.

Lib Dem Group Leader on Woking Borough Council, Councillor Will Forster, said:

"The Lib Dems across the country are pleased the Government has accepted our call for 'Pay to Stay' to be voluntary for councils, which will be a huge relief to households across the country."

"Making 'Pay to Stay' mandatory would have affected thousands of Council housing tenants across the country, with the average affected households seeing their rents rise by £1,065 a year. Local authorities would have needed to invest millions in new IT systems, hire new staff and write to over a million social housing tenants to try and understand household income and approve individual tenant bills."

"I am calling on Woking Borough Council not to bring in 'Pay to Stay' locally. The Council has previously admitted that this policy would be a difficult, lengthy and costly process to implement - it would also cause anxiety for families and be hugely unpopular with Council housing tenants. Woking Council should immediately signal that it will not bring in any form of 'Pay to Stay'."