[Kizzy]

Higher-earning tenants in social housing, will pay a fair level of rent to continue living there, under consultation proposals.

Higher-earning tenants in social housing, will pay a fair level of rent to continue living there, under consultation proposals published today (9 October 2015) by Housing Minister Brandon Lewis.

Households in social housing with a total income of more than £40,000 in London and over £30,000 elsewhere, will pay a rent at market or near market levels.

This will put an end to the situation where higher-income social tenants benefit from taxpayer-funded subsidies of up to £3,500 per year.

Instead, social rents would increase as tenants’ incomes rise above this threshold – meaning those in real need continue to pay a subsidised rent, while continuing to ensure that work always pays.

Housing Minister, Brandon Lewis, said:

It’s not fair that other hard-working people are subsidising the lifestyles of higher-earners to the tune of £3,500 per year, when the money could be used to build more affordable homes.

’Pay to stay’ will ensure that those tenants on higher incomes who are living in social housing have a rent that reflects their ability to pay, while those who genuinely need support continue to receive it.

The money saved by councils by removing this subsidy will help contribute to the government’s £12 billion of welfare savings, and housing associations will be able to retain the additional income raised to help support their role in providing new housing.

There are currently more than more than 40,000 social rented tenants with household incomes in excess of £50,000 per year; and a further 300,000 with incomes over £30,000.

Strivers slapped back down again, what is the real issue here... Are they attempting to force those who can afford to purchase do so?
This will indeed create distinct 'them and us' communities with families on the same street in social housing paying wildly differing rents.
Instead of bringing private rents down, social rents are being raised in line with them. :/


https://www.gov.uk/government/news/f...ts-pay-to-stay