Experts warn George Osborne’s little noticed ‘pay to stay’ scheme will leave an estimated 250,000 people in social housing worse off
Hundreds of thousands of council tenants are facing a steep rent rise of up to £3,000 a year.
Experts warn George Osborne ’s little noticed “pay to stay” scheme will leave an estimated 250,000 people in social housing worse off. Under the Budget measure anyone earning more than £30,000 a year (£40,000 in London) will have to pay the market rate for rents.
The Institute for Fiscal Studies (IFS) think tanks calculates this would see nearly one in ten council and housing association tenants having to pay an extra £3,000 a year on average. The IFS also said the Chancellor ’s plan to cut rents by 1% for all other tenants will “be of little or no direct benefit” to most of the 3.9 million households in England living in social housing.
It says as most of their rent is covered by housing benefit, they will not be better off. And because councils and housing associations will have less rental income fewer houses will be built, the IFS says.