The High Court has ruled that retrospective changes to the LGPS exit credits regime were lawful – and gave some helpful guidance around the new discretion to pay an exit credit.
- Those working in struggling neighbourhoods will continue to see the fall out from the squeeze on the welfare budget. The tightening of the benefit cap and the current and future restriction of tax credits will impact directly on the poorest families, both in and out of work. Local charities and community organisations tell us they are already picking up the “fall out”, and this is likely to put a greater strain on organisations working with these communities.
- Many community organisations and social enterprises work closely with social housing providers. The latter got some nasty shocks in the budget, and are reeling from the potential impact of the “pay to stay” proposals for higher earners in social housing, combined with the plans to reduce rents in the social sector by 1% in each of the next 4 years. This, combined with the introduction of Universal Credit, will see housing associations going through a major review of their finances. The concern is that this will see housing providers reduce their support for social enterprise and the community sector significantly, further undermining an already stretched resource.
- Tenant Management Organisations and other community based housing providers will feel the impact of the rent reductions directly and will need to review their financial projections urgently. We understand that the “pay to stay” provisions will also apply to those in local authority housing, so TMOs will have to digest the implications – both financial and practical – here too.
- Social enterprises and co-ops will have many staff in lower paid roles, and will therefore need to review the financial impact of the national living wage. Whilst supporting people on low wages is laudable in principle, the burden is being passed from the state to the employer. In the public sector and in community organisations, of course, there is little or no scope to take account of this through pricing.
- Charities should note that on Budget Day, the government also announced plans to further review business rates and the associated reliefs. We have already seen social enterprises being refused discretionary rate relief and the scrutiny here is only likely to increase.
So in conclusion, some major implications to digest, especially for those close to the social housing sector or working in deprived communities. Like you, we will be watching the detail of how these proposals unfold carefully.
For more information
Contact David Alcock.
The Government has brought forward draft laws to allow independent schools to close the Teacher’s Pension Scheme to new joiners but to allow existing members to continue.
The Government has started consultation on the regulations providing the detailed framework for collective money purchase pension schemes.
In June we took on the challenge to become a Sepsis Savvy organisation - I'm really pleased to announce we've done it!
In 2020 the court rules were changed to require that all residential tenants must be given 14 days’ notice of an eviction. What happens though if the eviction is cancelled on the day?
We are delighted to announce that our private wealth law department has continued to maintain its Band 2 position in the latest edition of Chambers and Partners High Net Worth.
The new CHF is set to launch and open for applications with £4 million set to be allocated to community-led housing groups to support an increase the supply of affordable housing in England.
Charities, like other organisations, may be subject to or choose to voluntarily comply with the reporting requirements under the Modern Slavery Act 2015.
The draft regulations making it mandatory for anyone entering a registered care home in England to have been double vaccinated unless they are clinically exempt were made on 22 July 2021.
Doug Mullen and Michelle Knight discuss the recent judicial review of regulations changing the regime governing exit credits in the local government pension scheme.
To receive invitations to our events, as well as information and articles on legal issues and sector developments that are of interest to you, please sign up to Newsroom.