Work more lose house or work less keep house is official Conservative policy!
The budget red book says a couple both earning the so-called living wage “will be better off in work” yet they will be £2300 pound per year WORSE OFF if they live in social housing,
The budget red book lies and shows the couple will be better off by about £2000 per year in net income YET the couple will have to pay an additional £4,500 per year in rent due to pay MORE to stay
The chart looks as if the household will be better off yet this is a deliberate deceit when you look at the very highly contrived source calculations.
The couple both working 35 hours per week is 70 hours per week at the proposed 2020 Osborne version of the living wage of £9.00 per hour is a household income of 70 x £9 or £630 per week – which is £32,760 per year – which takes this household over the Pay MORE to Stay limit of £30,000 per year.
If this couple lives in a council or housing association property the social rent they pay will increase to the average private rent level which nationally is over £85 per week more (£4,435 pa) than the average social rent level today and will be over £90 per week more (£4696 pa) by 2020
PMS is a crude and deliberate incentive for working social tenants to take up Right to Buy as the massively increased rent will be far more than a mortgage yet it means the work will always pay more mantra is not the case for a tenant in a council or housing association property.
It means social tenants can only aspire to home ownership and not have the option of choosing to remain a social tenant if they earn the minimum wage.
The couple who both get a low paid can’t afford social housing, private rented or a mortgage
Social housing in the governments view is a case of if the plebs aspire they are well and truly shafted with the pay MORE to stay policy which has the perverse incentive of work more lose house and work less keep house
Please note – the Osborne “living wage” is £7.20 in 2016 rising to £9.00 per hour (or more) by 2020 so rising by £1.80 per hour over 4 years or £0.45p per year.
2017 = £7.65 per hour so a couple working average week of 39 hours each will have a household income of over £31,000 so this pay £4000 more to stay will happen from April 2017 not from 2020 as in the above