Concerned about Government plans for social housing

fusionx212

Hi All, is anyone else concerned about the government plans for social housing
I earn just under 37k a year, with 2 kids and a wife who is in full time education. I rent a housing association house, I have arrears which are being paid off and I had quite severe debt problems. This is going to sting my family massively and potentially ruin all my plans of becoming debt free.
I have no chance in hell of ever escaping renting and owning my own property.

I'm surprised this is not being picked up more by the media and other families in the same situation.

is there anything we can do or is being done.

This government seems to be out to really screw over hard working people,

andyfromotley

What is the proposed change and how will it impact upon you?

fusionx212

http://researchbriefings.parliament.uk/ResearchBriefing/Summary/SN06804

Social housing: 'pay to stay' at market rents
Published Monday, March 21, 2016
This House of Commons Library briefing paper provides information on the ‘pay to stay’ scheme in England under which social landlords can charge tenants with an income of over £60,000 market or near market rents. The Government has included measures in the Housing and Planning Bill, currently before Parliament, to make higher rents compulsory in due course for council tenants earning over £40,000 in London and £30,000 elsewhere. Housing associations will have discretion over whether or not to implement higher rents for tenants with these income levels.


Following a consultation exercise in 2012 the Coalition Government gave social landlords in England the discretion to charge market or near market rents to tenants with an income of £60,000 or more a year. It was argued that high income families should not be paying social rents (typically half the market rent) when they could afford to pay more. The scheme is known as ‘pay to stay.’ It is unclear how many social landlords have implemented this approach.

Respondents to the consultation exercise raised concerns over:

administration - social landlords do not gather information or monitor tenants’ incomes;
affordability – affected tenants could face substantial rent increases;
the potential work disincentive effect; and
residualisation of the housing stock as higher earners are incentivised to move out.
Compulsory 'pay to stay' & lower income thresholds

As part of the Sumer Budget 2015 the Chancellor announced that the discretionary ‘pay to stay’ scheme would be made compulsory (in England) and that new, lower, income thresholds would be introduced. These thresholds are expected to be £40,000 in London and £30,000 elsewhere. Local authorities will be expected to repay the additional rental income to the Exchequer ‘contributing to deficit reduction’ while housing associations will be able to use the additional income to reinvest in new housing. Following the declaration by the Office of National Statistics (ONS) at the end of 2015 that housing associations are public sector bodies, the Government announced that pay to stay would be discretionary for these landlords.

Measures to introduce a mandatory pay to stay scheme for local authorities have been included in the Housing and Planning Bill which is currently before Parliament. A consultation exercise, Pay to stay: fairer rents in social housing, was conducted between 9 October and 20 November 2015, the results of which were published on 8 March 2016: Pay to stay: fairer rents in social housing - consultation response. The Government has confirmed that a taper will be applied above the minimum income thresholds and that households in receipt of Housing Benefit will be exempt from paying higher rents. The Government’s aim is to implement the mandatory pay to stay scheme from April 2017.

Commentators have echoed concerns raised during the 2012 consultation exercise.

The Chancellor’s reference to social housing rent levels as subsidised by ‘other working people’ has drawn comment on the degree to which social housing is actually subsidised, particularly compared to other housing tenures.

I pay the rate at which the government deems for my property. I am now looking at paying nearly £1100 a month for my house in rent alone compared to market rates where I live. this is going to cause me massive money troubles and means I'll have to look at moving my family away from the area we have lived in most of our lives because of this.

andyfromotley

I dont disagree in principle that those with higher incomes should pay more to live in social housing. I guess the tricky bit is setting it at a fair level of earnings before you pay more.

I'm sorry this is impacting you so badly. It must really suck.

fruitisbad

If you're earning over 30k a year it doesn't seem like you'd require social housing, I though they'd be for those in desperate need.

fusionx212

37k a year to cover a family of 4's needs as well as a full time student, I'd like to see anyone else who can do it.

I am under 30 and have no money or rich relatives to give me funds for buying a house. I wasn't handed a massive pot of money when I hit 18, nurses and teachers will be impacted by this would you deem that they don't deserve social housing?

it's not reserve just for everyone in desperate need.

I'd happily rent private but the rent is not at fair affordable rates, I am a computer technician, I've had to work hard to claw my self out of money issues and get a decent wage with out attending a university. this isn't a sob story it's the truth and these new rules make the average person suffer.

ReadingTim

fusionx212 wrote: »

is there anything we can do or is being done.

This government seems to be out to really screw over hard working people,

Yes - vote. Vote for another government with different priorities. Assume you voted last week, and in the general election last year?

fusionx212

Yup I did vote last year and last week, but the point here is that the policy is potentially very damaging to average families.

I get people don't care because it doesn't affect them, people in ivory towers and all that

girlsmum

I can understand why you are worried but surely it won't be an issue for ever as i assume your wife will one day finish her full time education and will then be able to contribute financially when she gets a job. It will be a struggle in the interim.

suki1964

fusionx212 wrote: »

37k a year to cover a family of 4's needs as well as a full time student, I'd like to see anyone else who can do it.

I am under 30 and have no money or rich relatives to give me funds for buying a house. I wasn't handed a massive pot of money when I hit 18, nurses and teachers will be impacted by this would you deem that they don't deserve social housing?
it's not for everyone in desperate need I'd happily rent private but the rent is not at a fair affordable rates, I am a computer technician, I've had to work hard to claw my self out of money issues and get a decent wage with out attending a university. this isn't a sob story it's the truth and these new rules make the average person suffer.

Your partner has chosen to be a full time student

If you can't afford it, she should go back to work and study part time


I feed 3 adults for no more then £35 a week

Get yourselves over the debt free and old style boards and I'm sure you will receive plenty of help in reducing your outgoings to clear those debts


Oh, and yes I started off 25 years ago in social housing ( was very grateful as well ) but me and DH new we wanted to own our own home so worked bloody hardship for years to get us our home. We never had any handouts either. Indeed DH's dad, when he knew he had terminal cancer, SOLD his car to DH rather then give it to him lol

Now in our early 50's we are mortgage free and life is finally becoming easier

fusionx212

you have 3 adults on a budget I have one more than you and 2 of them are children.

I use those boards like you. I have been pretty good in getting my debts down.

suki1964 like you said you used social housing to get into your own home. this new plan takes away that possibility not for just me but also many other families.

the point of view in regards to students is pretty ignorant in my opinion. She's choosing to study to have a better life for all of us as well. she wants to be a midwife.

so she should be one of the many who should in reality benefit from the system of social housing but instead will not.

the current system is adequate enough I can keep my head above water, however the new system puts all that into jeopardy.