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To: Brandon Lewis MP - Minister of State for Housing and Planning

Increase the threshold for Pay to Stay

Please increase the threshold for Pay to Stay for working households living in Social Housing.

This petition is to ask for consideration that the threshold for Pay to Stay be increased to at least £60,000 per household (£70,000 for London). This would ensure that the average family is able to live without poverty, keep a roof over their head and still be able to save a little each month for a deposit to buy their own home, freeing up social housing without first making more people homeless.

Why is this important?

Whilst many of us do agree that high earners should probably pay more for living in social housing, an entire household on £30,000 (or £40,000 in London) a year just isn’t high or wealthy. That would consist of a couple earning just £15,000 each, and we know how hard it is to get by on that meagre amount.

The current government are contradicting themselves when they say they’ll “make work pay” and they’re the party for the workers; yet if a social housing tenant works, they will now be penalised for it. If you live in social housing and you work, you will now face the prospect of losing your home.

Many of these working families in social housing (just like most other people) have aspirations to get out of the poverty trap and use the opportunity of social housing to save for a deposit to one day buy their own home, thus freeing up the home for the next family who needs it. Now it is as though they are not allowed to have dreams or better themselves. All hope of saving for a decent mortgage have been ripped out from under their feet while they are pushed back down into the ground where they apparently “belong”. It is increasingly depressing that there is near to no hope for people’s futures.

Mortgages aside, many families, especially those with children, will find it increasingly hard to manage day to day. These families could be forced to private rent, but not their own self contained flat as before, as the rents would again be too high, they will be forced into renting a room and sharing a house. Is this the way a family should live? We are regressing back to the days of overcrowded houses with notorious rip off landlords.

The ONS says that a family of four will spend on average £517.30 per week. If both parents earned a total of £31,000, they would (after tax), have only around £465 to spend per week, this is well below the UK average. When their rents are raised to market level, where will they get the extra money from? This will result in more poverty, tenants giving up jobs or reducing their hours to earn under the threshold, or in worst case scenarios, couples splitting up or living apart to avoid being penalised for having a job or older working children being kicked out to reduce the household income. If these children are under 21, and on a low wage, how will they find housing without a Housing Benefit top up?

Let’s cut out the “luxuries” of living, the ONS estimates that to live basically (rent/mortgage not included), a household will spend an average of £350 a week on bills, food, basic clothing, travel and health. This would leave a £30,000 earning home with about £100 a week to spend on their social housing rent. The average UK market rent is £960 per month, or £222 per week. How will these households meet the shortfall of market rent? Where will these families go?

This petition is to ask for consideration that the threshold for Pay to Stay be increased to at least £60,000 per household (£70,000 for London). This would ensure that the average family is able to live without poverty, keep a roof over their head and still be able to save a little each month for a deposit to buy their own home, freeing up social housing without first making more people homeless. The current proposed threshold will only make one family homeless to rehome another, thus not bringing down homeless levels, and increasing the housing benefit spend.

A consultation paper was produced which asked the opinions of experts in the field – Local Authority landlords, Private Registered Landlords, Tenant Representative Bodies, Private Landlords, and Individuals. A brief quote from the paper is below. Why was there a consultation when the majority of the views were not taken into account?

“About a third of respondents thought that the threshold of £60,000 was appropriate. A smaller proportion thought that £80,000 should be the minimum, while the least favoured was £100,000. Social landlords largely preferred £60,000. There were also views that the threshold could be lower than £60,000, though not a consensus in favour of lowering the threshold. If the threshold was below £60,000 it could act as a disincentive to work, particularly for larger households and in high demand areas such as London.

Those who favoured the threshold of £60,000 suggested it was reasonable and consistent with other Government policies involving income thresholds, such as access to affordable home ownership (although it was noted that the threshold may need to be adjusted to £74,000 for London, to align with London schemes) and the child benefit “cap”.

There were also views that no more than 30% of a household’s income should go on housing costs; otherwise, it could start to impact detrimentally on the household’s budget.”

Updates

2015-12-16 10:47:09 +0000

1,000 signatures reached

2015-10-15 03:11:06 +0100

500 signatures reached

2015-07-23 19:23:14 +0100

100 signatures reached

2015-07-20 09:03:47 +0100

50 signatures reached

2015-07-17 23:19:30 +0100

25 signatures reached

2015-07-17 12:57:18 +0100

10 signatures reached