Housing Bill: 13 House Of Lords Amendments Rejected As Government Defends 'Pernicious' 'Pay To Stay'

Reconstruction job thwarted in Commons
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Dominic Lipinski/PA Wire

The Government has seen off attempts to have to its flagship housing reforms demolished as it made a fierce defence of forcing council tenants to "pay to stay".

Ministers were handed 13 amendments to its Housing and Planning Bill from the House of Lords - a significantly higher total than is typical.

But the Commons blocked the changes, with the Government winning five that were forced to a vote.

Critics warn the cumulative effects of the Bill will fatally undermine the social housing sector, while threatening council house tenants with higher rents and subsidising well-off homebuyers.

But Government says it is poised to deliver the "largest programme of house building for a generation".

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Housing Minister Brandon Lewis
Parliament TV

Among the Lords' amendments were four to limit the impact of "pay to stay" - charging council house tenants full market rates if parents or couples earn above £30,000 between them, or £40,000 in London.

The Lords wanted to make the policy voluntary, increase the threshold and rate at which the extra charge was levied, and link the premium to inflation.

Labour's Shadow Local Government Minister, Roberta Blackman Woods, described the policy as "pernicious" and a "tax on tenants and aspiration".

She said: "It will lead to many people having to leave their homes or increase their levels of personal indebtedness.

"The Minister should have talked to the group of tenants from Hackney whom I met a few weeks ago.

"They are not high-income families. How could anyone describe as high a household income of £17,000 and £23,000 inside London; or £12,000 and £18,000 outside London?"

But Housing Minister Bradon Lewis said a voluntary scheme would "substantially reduce the revenue" to tackle the deficit, and that it would be unfair if councils applied the policy differently.

He went on: "We do not suggest that people over that income should not stay in their home, or that they should move to private rented accommodation.

"We are saying that as people earn more money, they should contribute a little more into the system.

"That is reasonable, and it ensures that we make the best use of those properties for the people who need them most."

Other changes rejected included moderating state subsidies for Starter Homes, which start at £450,000 in London, and watering down forced sale of council housing.

Blackman Woods said: "The Bill does little to solve our housing crisis, yet will make things a whole lot worse for the supply of genuinely affordable housing."

But Lewis claimed "people are frustrated" about delays to the policies because Labour MPs are "trying to stall them through political posturing at pretty much every opportunity".

The Bill now returns to the Lords as part of parliamentary "ping-pong". 

Before You Go

21 Times The Housing Bill Has Been Re-drawn
Defeat: Raid on council coffers(01 of21)
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The Treasury has been blocked from keeping the proceeds of the forced sale of high-value council houses - to fund Right-to-But discounts - without parliamentary approval (credit:John Stillwell/PA Archive)
Defeat: £100k discount on new homes(02 of21)
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A flagship scheme to hand well-off first-time buyers a taxpayer-funded 20% discount on a Starter Home has been moderated (credit:Scott Barbour via Getty Images)
Defeat: Forced house-building(03 of21)
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English councils can decide how many starter homes are built in their area (credit:TOBY MELVILLE via Getty Images)
Defeat: Making "pay-to-stay" mandatory(04 of21)
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Peers voted in support of a Labour-led amendment to give local councils the discretion over whether to implement “pay to stay”, a market rate charge for better-off tenants (credit:Yui Mok/PA Wire)
Defeat: Charging “pay to stay” at market rates(05 of21)
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Peers to back an amendment to lower the “pay to stay” taper rate from 20p to 10p in every pound, so lower-paid families would not be hit as hard (credit:John Stillwell/PA Archive)
Defeat: “Pay to stay” threshold(06 of21)
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The Lords voted 266 to 175 to increase the “pay to stay” threshold by £10,000 (credit:Yui Mok/PA Archive)
Defeat: "Pay to stay" inflation-linked(07 of21)
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Peers voted for "pay to stay" thresholds to be increased in line with inflation every three years. (credit:Dominic Lipinski/PA Wire)
Defeat: Replacement of council homes(08 of21)
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Ensuring a one-for-one - and like-for-like - replacement of council homes where housing shortages can be demonstrated. (credit:John Stillwell/PA Archive)
Defeat: Automatic planning consent(09 of21)
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Wide open “planning permission in principle” powers are to be limited to housing development (credit:Gareth Fuller/PA Wire)
Defeat: Local power(10 of21)
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Parish councils and local forums right to appeal against developments they think go against a "local plan" (credit:Stefan Rousseau/PA Archive)
Defeat: 'Green' housing(11 of21)
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An amendment to require all new homes in England built to achieve new standards in cutting carbon dioxide emissions (credit:Rui Vieira/PA Wire)
Defeat: Rural 'affordable' housing(12 of21)
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Local planning authorities can ask developers of 10 houses or less in a rural area to make some of them 'affordable' compared to local salaries (credit:Tim Goode/EMPICS Entertainment)
Defeat: Improved drainage(13 of21)
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Brings in new standards for implementation of rainwater drainage (credit:ASSOCIATED PRESS)
U-turn: Rural protection(14 of21)
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The Government is to look at backing down on the forced sale of council homes in national parks and areas of national beauty (credit:Olaf Protze via Getty Images)
U-turn: Landlord restrictions(15 of21)
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Ministers have accepted a proposal to make it harder for landlords to evict vulnerable people that have abandoned their homes (credit:Anthony Devlin/PA Wire)
U-turn: Rural house-building control(16 of21)
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The Government has been forced to consider giving councils discretion to exclude building homes in rural areas (credit:Andrew Matthews/PA Wire)
U-turn: Council house for life(17 of21)
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Ministers backed down on replacing lifelong secure tenancies with contracts lasting up to five years, and agreed to extend maximum to 10 years (credit:Matt Cardy via Getty Images)
U-turn: Protecting tenants' money(18 of21)
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Ministers will insist letting agents have to put money in to a Client Money Protection account to stop stop "rogues" running off with deposit (credit:Oli Scarff via Getty Images)
U-turn: Basement re-development(19 of21)
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Ministers agreed to review planning laws relating to basement developments amid fears councils cannot control the growth of “subterranean development” (credit:Kansas City Star via Getty Images)
U-turn: "Back-door" eviction(20 of21)
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The Government will look again at private landlords being able to reclaim properties when the become vacant after concern that it was open to being used as a “back-door” way to evict tenants (credit:Matt Cardy via Getty Images)
U-turn: Council tenancies(21 of21)
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Secured tenancies to cover the period that a child is in school (credit:Jonathan Brady/PA Wire)