There is to be a crackdown on ‘rich’ council tenants.
‘Rich’ council tenants to pay more rent under new rules.
According to Sky news, George Osborne is set to announce these new plans, which are, anyone earning over £40,000 in London or £30,000 outside the capital will lose benefits and have to pay the full market rent.
These changes are expected to save taxpayers £250m a year.
In a quote from Sky news, they say, ”It is aimed at the likes of Frank Dobson, who still lives in a council flat near the British Museum, despite serving as a Cabinet Minister under Tony Blair and earning a six-figure salary. The late Bob Crow lived in a council house in east London, thought to be paying just £150 a week in rent, while he was the militant leader of the RMT union with a pay and perks package of more than £140,000. When challenged, he said he made “no apology” for living in social housing.”
At the moment, when a tenancy is granted, a resident can stay in a council house for life, regardless if their financial circumstances change and they get higher paid jobs.
The only way a council tenant can be evicted is through the courts if they fail to pay rent, cause serious problems for neighbours or in other exceptional circumstances. If they die, the tenancy can be passed to a partner or child.
The new scheme will be called Pay To Stay.
The Government says Pay To Stay is aimed at making local housing more fairer and will unlock council homes for 1.9m people on the waiting list.
”Critics argue the drive could discourage the unemployed to find well-paid work as they may lose their tenancy as a result. They add it could increase the chances of council estates becoming ghettos of the workless poor and say the scheme fails to address the fundamental problem, which is a lack of affordable housing.”