The Department of Communities and Local Government (DCLG) is proposing that council tenants should pay a market value rent if their joint income is above £30k.
For a working couple this could mean a dramatic rise in rent, despite earning little more than the Minimum Wage of £7.20 an hour (around £14k a year each).
Birmingham City Council’s cabinet member for Neighbourhood Management and Homes, Cllr John Cotton, said: “We are opposed to these proposals. They will hit working people hard, by handing them a rent rise for simply trying to get on in life. It’s also clear that they will hold back those tenants who are trying hard to get back into work
Cllr Cotton also raised concerns about the proposal that any additional income raised should go direct to the Treasury, adding “This is an appalling suggestion. Any money paid by Birmingham’s tenants should stay in Birmingham. It proves that this policy has nothing to do with meeting housing needs and is simply a way of raising additional money for the Treasury at the expense of hard working tenants.”
For further media information contact Press and PR Officer Debbie Harrison on 303 4476
Cllr Cotton has also blogged on the ‘Pay to Stay’ proposals – http://birminghamnewsroom.com/why-pay-to-stay-is-a-new-tax-on-work/