TAX ON WORKERS
You may be aware that the government are proposing, that those residents living in Social housing and Housing associations properties earning more than £40,000 per year per two highest earners within one tenancy, will be forced onto the higher 80% of market rents payments system, even though they have existing tenancy agreements.
The income from this to local councils will go to the governments treasury debt to counter the Tory's austerity debt, whereas income from this increase to housing associations will be kept for re-investment.
Currently this proposal exists within local councils but up to the earnings of £60.000 Gross per house hold, but on a discretionary basis. At the moment very few authorities have implemented this as its clearly unfair.
The government proposal to reduce this £60,000 cap to £40.000 will effect many low paid households. Two nurses living together earning £21.000 each will fall into this catchment as the income per household will be £42,000.
The additional money taken as a result goes to the government therefore it can only be seen as income tax, which could lead to a number of legal challenges.
