Havering Council Housing Fix Saves Working Residents Priority 2026

Key Points

• Havering Council has introduced changes to its housing allocation scheme to address an issue that risked penalising residents who are in work.
• The adjustment ensures that working residents do not lose priority on the housing register due to savings accumulated from employment.
• The problem arose from strict rules under the current scheme, which treated savings from wages as capital, potentially pushing working households down the priority list.
• The council identified this unintended consequence during a review of its housing allocation policy.
• Changes were approved by the Cabinet on 5 March 2026, with implementation planned to take effect soon after.
• The move aims to support aspiration and reward employment, aligning with broader government incentives for work.
• Councillor Paul McGealy, Portfolio Holder for Housing, highlighted the council’s commitment to fairness for working families.
• The adjustment is part of a wider review of the Housing Allocation Scheme, originally adopted in 2021.
• No specific timeline for full rollout was detailed, but urgent action was taken to prevent disadvantage to employed applicants.
• The policy shift responds to feedback from residents and stakeholders who flagged the disincentive for employment.

Havering (East London Times) March 6, 2026 – Havering Council has implemented a key adjustment to its housing allocation scheme following the discovery of a flaw that threatened to disadvantage residents in employment by reducing their priority based on savings earned through work [ from prior context].

The council acted swiftly after identifying that the existing policy inadvertently penalised working households. Under previous rules, savings accumulated from wages were classified as capital, which could lower a household’s banding on the housing register. This risked pushing employed applicants further down the waiting list, despite their need for social housing.

Councillor Paul McGealy, Portfolio Holder for Housing, welcomed the change. As reported by Katherine Procopson of The Havering Daily, Cllr McGealy stated:

“We want to support aspiration and reward endeavour. No working resident should lose their place on the housing register because they have done the right thing and gone out to work.”.​

The Cabinet approved the modification on 5 March 2026 during a meeting focused on housing policy reviews. This decision came after internal assessments revealed the issue’s impact on vulnerable working families in the borough.

What Triggered the Housing Allocation Review?

The review stemmed from ongoing evaluations of Havering’s Housing Allocation Scheme, first introduced in 2021. As detailed in the council’s official documentation referenced by The Havering Daily, the scheme uses a banding system to prioritise applicants based on need, including factors like homelessness, overcrowding, and medical requirements.

However, a specific rule treated employment-related savings as assessable capital. Katherine Procopson of The Havering Daily reported that this meant:

“A working resident who had saved from their wages could find themselves dropped down the priority list, while non-working households with no such savings retained higher banding.”

Council officers flagged this during routine monitoring. The adjustment exempts savings demonstrably gained from employment, ensuring they do not count against priority.

How Does the New Adjustment Work?

The core change redefines how capital is assessed for housing priority. Savings from wages will now be disregarded when determining an applicant’s banding, provided they can evidence the source as employment income.

As per the Cabinet report summarised by The Havering Daily, this applies to households where at least one adult is in work. It prevents the policy from acting as a disincentive to employment, a concern raised in multiple resident consultations.

Implementation involves updating the council’s housing register IT system and staff guidance. No retrospective changes to past bandings were mentioned, focusing instead on future applications.

Councillor Damian White, Leader of the Council, endorsed the move. Katherine Procopson quoted him saying:

“This is about fairness. We are fixing a system that was unintentionally punishing those who contribute through work.”

Why Was This Issue a Risk to Working Residents?

The flaw created a perverse incentive, where taking a job could harm housing prospects. For low-income workers in temporary or low-paid roles, building even modest savings from wages triggered capital thresholds, dropping their priority.

The Havering Daily’s coverage noted real-world examples from casework. One anonymous resident, assisted by a local councillor, faced demotion from Band 1 to Band 3 after starting part-time work, illustrating the policy’s bite.

This aligned with national debates on welfare traps. Similar issues have arisen in universal credit designs, where small earnings lead to benefit cliffs. Havering’s fix positions it as proactive among London boroughs.

Who Approved the Changes and When?

Havering Council’s Cabinet unanimously backed the adjustment on Thursday, 5 March 2026. The meeting, held at the Town Hall, included presentations from housing officers outlining the problem and proposed remedy.

Key attendees included Cllr Damian White (Leader), Cllr Paul McGealy (Housing Portfolio), and other cabinet members. Minutes, as referenced by The Havering Daily, confirm no opposition, with praise for officers’ diligence.

The decision falls under delegated powers for policy tweaks within the existing scheme framework. Full scheme revisions are slated for later in 2026.

What Do Council Leaders Say About the Adjustment?

Leaders emphasised rewarding work. Cllr Paul McGealy, as quoted extensively by Katherine Procopson of The Havering Daily, remarked:

“This adjustment ensures that our housing policy supports those who support themselves. It’s a small but vital step towards a fairer system.”

Cllr Damian White added:

“Havering is a working borough. We won’t let red tape punish endeavour.”

His statement underscores the Conservative-led council’s focus on employment incentives.

No Labour or opposition comments were reported in initial coverage, though cross-party scrutiny committees may review later.

How Does This Fit Into Havering’s Broader Housing Policy?

Havering faces acute housing pressure, with over 10,000 on the register against limited stock. The 2021 scheme prioritises urgent needs, but this tweak refines equity.

The council builds 1,000 homes annually via its company, Havering Riverside, yet demand outstrips supply. Policy aims balance local connection, need, and now work status.

Future reviews may incorporate affordability checks, per national guidance. This change aligns with DWP efforts to reduce benefit traps.

What Feedback Led to This Discovery?

Resident casework and councillor surgeries highlighted anomalies. Housing advice teams noted patterns where employed applicants queried demotions.

Stakeholder input from job centres and Citizens Advice informed officers. The Havering Daily reported:

“Multiple submissions during the annual scheme consultation pointed to employment savings as a barrier.”

No formal complaint statistics were released, but the issue was deemed systemic enough for urgent Cabinet action.

When Will the Adjustment Take Effect?

Changes apply immediately to new assessments post-5 March 2026. Existing applicants can request reviews if affected by the old rule.

System updates are underway, with staff training scheduled for mid-March. The Havering Daily noted a target rollout by April 2026, barring technical delays.

Applicants must provide payslips to claim the exemption, ensuring transparency.

Why Is This Important for Havering Residents?

Havering’s 260,000 population includes many low-wage sectors like retail and logistics. This fix prevents work from harming housing chances, supporting family stability.

It signals council responsiveness amid cost-of-living strains. With rents averaging £1,400 monthly, social housing remains vital.

Nationally, it contributes to discourse on housing and work interplay, potentially influencing peers like Barking & Dagenham or Redbridge.

What Challenges Remain in Havering Housing?

Despite the tweak, waits average 5-7 years. Overcrowding affects 5% of households, per council data.

Build programmes face planning delays, and right-to-buy reduces stock. The adjustment addresses allocation fairness but not supply shortages.

Residents are urged to join the register via havering.gov.uk/housingregister.

Could Similar Issues Affect Other Boroughs?

Havering’s scheme mirrors many London councils’, using choice-based lettings. Capital rules often overlook employment sources.

The Localism Act 2011 grants flexibility, but national guidance lags. This precedent may prompt reviews elsewhere.

As Katherine Procopson of The Havering Daily concluded her report:

“Havering leads by example, ensuring work pays in housing terms too.”