Rent Changes for Council Tenants Housing and Planning Act 2016

The government has passed a new law which will mean some big changes for Council tenants in the future, including rent increases for some tenants. Some of these changes have not been finalised yet, but we want to make sure residents know about the rent increases, so you can start to think how you might be affected and review your household spending.

Pay to Stay (High Income Social Tenants: Mandatory Rents)

From April 2017 the amount of rent council tenants pay will be decided by their household income. For every £1 above £31,000 a household earns, they will have to pay an extra 15 pence in rent. The extra rent has to be paid by Councils to the

government.

In future the amount of rent council tenants pay will be decided by their household income. The current date proposes is from April 2017 however this may be delayed as there may not be enough time for the regulations to be issued.

Only the incomes of the two highest earners will be counted, this could be from the tenant, the tenant’s partner, or joint tenants. The incomes of adult children will only count if they are joint tenants and they are one of the two highest earners. See

examples below:

Gross Household Additional rent each year Additional rent to pay each

Income (before week (allowing for non-payment

deductions) weeks)

£35,000 £600 £12.50

£40,000 £1,350 £28.13

£45,000 £2,100 £43.75

£50,000 £2,850 £59.38

If your household’s annual income is less than £31,000, or if you receive Housing Benefit or Universal Credit, you will not be affected.

As details of Pay to Stay become clearer, we will write to you if we think you may be affected and advise you about what information you need to provide and where to get independent advice from. In the meantime if you would like to discuss this

further please contact your Neighbourhood Housing Officer, telephone 01793 445503 or email: housing@swindon.gov.uk

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