The Guardian and Telegraph reported this weekend that the government is to publish a consultation paper next month on its ‘Pay to Stay’ proposals which would see tenants of councils and housing associations earning above a certain income level being required to pay the full market rent on their homes.
The idea was first raised last June when housing minister Grant Shapps revealed the plans to the Telegraph. The move now appears to have the prime minister’s backing, with a No 10 ‘source’ telling the Guardian:
‘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.’
The new limit is more likely to be £60K household income, which could raise an additional £122.4m of rental income, whereas the £100,000 threshold originally suggested by Shapps would only raise £21.6m (only 6000 tenants woudl have been paying on the £100K limit)