The pricing structure is also a strong disincentive to use the iPad app at all, of course.

Regulators defended the change, with Bank of England Governor Mervyn King saying on Sunday that a strong disincentive will be built into the changes.

The result is a drop in confidence, acting as a strong disincentive for businesses to invest and hire, he wrote in a note to clients.

I think there will be strong disincentives for even Europeans to come here.

Laura Gardiner, senior economic analyst at the foundation, said: Enforcing near-market rents for council tenants earning over £30,000 risks creating strong disincentives to earn more.