Statement on Pay to Stay policy

Hounslow Council has confirmed it will not introduce a Pay to Stay policy for council tenants.

Published: Thursday, 1st December 2016

Hounslow Council has confirmed it will not introduce a Pay to Stay policy for council tenants.

The policy, also dubbed the ‘Tenant Tax’, had been proposed by central government and would have forced the council to increase rents to near market levels for tenants with a household income of £40,000 or more.

The government has now announced that Pay to Stay will not be mandatory for councils or housing associations.

Councillor Katherine Dunne, Cabinet Member for Housing, Hounslow Council, said “We are pleased that the government will not force councils to implement the Pay to Stay policy and I can confirm that Hounslow Council will not be doing so.

“This government U-turn follows campaigning by housing campaigners, tenants’ groups and Labour councillors who pointed out that Pay to Stay would force families out of their homes, act as a disincentive to work, and place an additional administrative burden on councils who would not have been able to spend any extra income locally as this was to be passed on to the Treasury.

“This announcement will come as a relief to around a thousand households in Hounslow who would have faced an uncertain future had this policy been implemented.”

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