The government’s ‘pay to stay’ policy will see working families forced out of social housing, according to a Guardian reader callout.
The policy, set to come into effect next April, has been heavily criticised by local councils as being expensive and difficult to implement. The policy is unlikely to make the kind of savings claimed when the scheme was first presented to parliament.
Some respondents worried the rent increases will force them into private rented accommodation, which they would then be unable to afford.
We heard from readers taking pay cuts, avoiding promotions or considering giving up work in order to keep within the pay threshold, set at £40,000 in London and £31,000 outside. And most of all, we heard from tenants who felt that pay to stay was part of a concerted government effort to push people in employment out of the social housing sector altogether.
Below are a selection of the responses we received.
‘The Tories are punishing us for not being well off’
I moved in with my wife who has social housing tenancy, after living in private rented sector for 11 years. We’ll be affected as our joint income is over £40k. My wife works in childminding. I’ve been divorced twice previously and had to give up my home twice - I have no chance of starting another mortgage now that this new policy is coming in as we won’t be able to save any money.
I just feel for my younger children and what their future is. I’m also really insecure about my and my wife’s prospects as retirement is round the corner but it just seems that once again the Tories are punishing us for not being well off.
Simon, 57, project manager, east London
‘It is creating huge uncertainty’
We are waiting to find out if our housing association will opt to implement pay to stay, but the whole idea will be a disaster for Oxfordshire. It is creating huge uncertainty as we will have to consider leaving our home and work of over 25 years if it is implemented. I am a nurse; my partner is in receipt of disability benefits.
Like a lot of public sector workers we are already struggling. Oxford residents pay London prices for housing yet don’t get wages that reflect this. For instance NHS staff in London get a weighting allowance of up to £6342 a year. In Oxford we get no additional help.
The only way I can carry on living and working here is down to the lower social rent.
Already NHS services have major problems recruiting and retaining staff to work in the area. Pay to stay will only serve to make a bad situation worse.
The pay to stay regulations do not reflect the fact that Oxford tenants lack the additional income of London, but they will be expected to pay to stay with a household income of only £31K unlike London’s £40k - this means Oxford council housing tenants will face having rents increased to reflect market values similar to London without the additional protection London tenants get.
Ian Mckendrick, Oxford
‘We feel that we are being punished for being social housing tenants who work’
I live with my mother who is a council tenant. We currently earn below the so called ‘High Income’ threshold. However, I am due for a promotion next year but will turn it down as it will take us to the threshold figure. I can’t risk our rent increasing - we just about get by as it is. Mum is eligible for housing benefit on her low pay, but we stopped claiming this quite a few years back as the hassle and stress of being means tested - we had to continuously deal with with incorrect ‘overpayment’ decisions from the council - had taken its toll.
We are extremely concerned that we will face the same problem when they start means testing again to determine our rent levels. We feel that we are being punished for being social housing tenants who work.
Steve, London
‘This will cause massive hardship’
It’s unfair, people in social housing will almost invariably have debts and working hard to work their way out of debt, then the government hits them with this extra rent. A couple might jointly earn 31K ( which would make them lower paid in the first instance ) but if they have children and debts then an extra increase a month potentially on top of their current rent will cause massive hardship. Even a single person living alone may have debts and be pushed into further hardship
What a lot of people don’t realise also, if it is a Housing Association then the Pay to Stay increase is voluntary on the part of the Association. I have that in writing from the MP who is overseeing these matters. My housing association has implied it is a Governmental instruction, but that is a misleading untruth on their part.
Sean, office worker, Manchester
‘It will be very difficult to make ends meet now’
Pay to stay will prevent me from working for not for profit organisations. I could cope with the much lower pay as my rent was more reasonable.
I took up residence social housing as a result of my partners illness and subsequent death - it’s taken me 10 years to get back on my feet financially.
All of my forward planning - including my pension - was based around my assured tenancy and regulated rent. Now those sums just don’t add up - and for a woman of my age that is nothing short of a disaster.
I’ve contacted Shelter and Liberty to see if they can help me - but Shelter say unless I am homeless they cannot help and Liberty did not get in touch either. I’m at a loss that I have a legal document that can just be overturned at the whim of a government minister.
It will be very difficult to make ends meet now. I’m really worried about the future - I’ve got an assured tenancy - which should mean I can live here for life. With the current callous and capricious government, I just don’t have that assurance anymore. What will they do next?
Finally, for anyone suggesting I just buy my home - well I have always felt that I am just it’s custodian for my lifetime and it would pass onto another family in the future.
Claire, 47, works in the charity sector
Some names have been changed
