U-turn on income-based housing policy welcomed by MP John Healey

MP John Healey welcomed a U-turn on a housing policy he said would have hiked Rotherham rents by an average of around £1,850 a year.

The Government had proposed an income based rents policy, requiring local authorities to set higher rents for higher income council tenants.

Critics described the controversial move as part of the Housing and Planning Act 2016 a “pay to stay” policy and the “tenant tax”.

But Tory ministers have now announced that the plan will be shelved.

Housing Minister Gavin Barwell said: “We have listened carefully to the views of tenants, local authorities and others and as a result, we have decided not to proceed with a compulsory approach. Local authorities and housing associations will continue to have local discretion.”

Shadow housing secretary John Healey welcomed the rethink and urged ministers to look again at other policies, including “the forced sale of vital council homes and the huge cuts to investment in new genuinely affordable homes”.