Who will be able to afford to "pay to stay" in social housing?

When people can't afford "affordable" rents, housing policy is broken.

InsideHousing has a fantastic scoop on quite how broken the government's "pay to stay" proposal is. The scheme is designed to tackle the "Bob Crow problem", when people who were given social accommodation in the past end up earning significantly higher salaries while still having subsidised rents. That aim is questionable enough as it is – the Guardian's David Walker argues compellingly that it would lead to ghettoisation – but in some parts of London, it is impossible.

The way the scheme, as proposed, will work is that any person earning more than £60,000 will have to pay the full market rent on their property, or leave.

But InsideHousing explains:

Exclusive data from consultancy Hometrack reveals that in four boroughs this will not be possible for tenants paying affordable rents.

This is because tenants would need an income of up to £82,226 to pay the rent even if it is set at 63 per cent of the market rate - the average proportion charged under the scheme - rather than the 80 per cent maximum allowed.

In other words, there are councils in London (Kensington and Chelsea, City of Westminster, City of London and Camden) where the income required to pay the average affordable rent is higher than the income which the government says is enough to throw people off social housing schemes entirely.

It gets even worse if you break it down by area; InsideHousing reports that there are "88 wards across 16 boroughs with a total of 131,000 social homes that could only be afforded by households earning more than £60,000 a year if rents were set at 63 per cent of the market rate."

The full table of incomes required to pay "affordable" rents is quite something; head to their site to take a look. But in the affected boroughs, at least, it's pretty clear that "pay to stay" means little different to "ask to leave".

Housing placards. Photo: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.