Government drops compulsory ‘Pay to Stay’ policy

The Government last night announced that it would not be proceeding with plans to implement rent increases for Camden tenants whose household income is over £40,000 – the policy commonly known as ‘Pay to Stay’.

Camden Council has shared residents’ concerns about proposed changes to housing legislation set out in the Housing and Planning Act and sought to influence the emerging policy at every opportunity to make its impacts less damaging for our residents.

There will now be no obligation put on councils to implement Pay to Stay.

Councillor Sarah Hayward, Leader of Camden Council
“Pay to Stay would have been a brutal tax on our tenants who work to support their families. The prospect created massive insecurity for social tenants who face a London-wide housing crisis - good riddance it’s gone. This hard-fought change is a major victory for our tenants.

“We will continue to work with Tenants and Residents Associations, our unions and our tenants to challenge the government and call for the reversal of other damaging parts of the Housing and Planning Act, to press for affordable and secure housing for everyone in Camden.”
Councillor Sarah Hayward, Leader of Camden Council

Pay to Stay was part of the Housing and Planning Act and would have seen tenants pay an extra 15p rent for every pound earned over the £40,000 threshold. For example, a family on £45,000 would have paid an additional £750 in rent per year, which would have gone directly to Government. The policy would have been extremely complex and expensive for councils to administer.

This Housing and Planning Act will affect all housing tenures, not just the social rented sector. It will reduce the availability of genuinely affordable homes, drive up rents, reduce our ability to build new homes and damage the sustainability of London’s socially mixed communities and its economy.

For more information about Camden Council’s response to the Housing and Planning Act, visit our website.