Hard-working families will not have to worry about huge rises in rent, as the Government’s controversial ‘Pay to Stay’ scheme has been rejected by Sheffield City Council.
Almost 3,000 households across the city would have been affected if the council proceeded with the new legislation.
Local authorities were given the choice of making households which earn more than £31,000 ‘pay to stay’ in their council homes.
This move would only apply to those in work, with people on benefits excluded from any rises.
The Government initially made these plans compulsory but backed down in the summer after deciding it did not support working class families.
A Sheffield Council welfare reform report said: “The Government has made Pay to Stay discretionary, under which local authority tenants with taxable incomes over £31,000 (or £40,000 in London) would have been required to pay a market, or near market, rent,”
“The decision has been made in Sheffield not to implement this.”
The same report also warns of the number of households affected by the housing benefit cap from January.
An estimated 800 Sheffield households will see a reduction in their housing benefit, joining 113 families already affected as a result of the benefit cap.
The report said: “In total, these households who will be affected by the reduced benefit cap contain 3,446 children.”