Agenda item

- to approve the introduction of the revised Decoration Allowance Policy

The Housing Manager submitted a report proposing a revised Decoration Allowance Policy and Procedure to address concerns identified by the Audit Commission and contribute to the delivery of a three star Repair and Maintenance Service.

The Audit Commission had identified the need to revise the Policy to ensure that allowances were allocated equitably and performance and satisfaction were systematically evaluated.  The current Policy and guidance for issuing decoration allowances was limited.  The Lettings Policy stated that £25.00 could be offered for each habitable room but it gave no guidance in what circumstances an allowance may be offered.  The figure had also been used as a guide by officers using an allowance where decorations had been disturbed by improvement programmes.   There had been no identification of the duty that the Local Authority had under the Landlord and Tenant Act 1985 to replace like with like and/or compensate for decorations damaged during repair work.

The current system of payment to the customer also lacked choice.  All payments were made using Focus vouchers.  This arrangement was negotiated with a 10% discount for the Authority by RBT procurement.  Complaints had been received from customers about the accessibility of stores.

The main features of the revised procedures were that it:-

-        Ensured an equitable service by defining a decoration standard for voids and provided guidance in what circumstances an allowance could be paid;

-        Expanded the allowance to non-habitable rooms such as hall and stairways;

-        Recognised that some rooms were more expensive to decorate than others and set a sliding scale of allowance to match;

-        Explained the obligations that arose from the Landlord and Tenant Act 1985;

-        Improved accessibility of the scheme by expanding the choice of payment methods to include cheques and a credit on the rent account;

-        Included a decoration allowance leaflet to improve the customer’s awareness of the service;

-        Introduced a decoration allowance contract with the customer which clarified the responsibility of the customer and improved the audit of the service;

-        Allowed for the future improvement of the service by introducing service standards and a customer satisfaction survey to identify customers’ needs and aspirations.

The revised Policy and Procedure would be monitored on a 6 monthly basis to audit the equitable distribution of allowances and satisfaction with the Service.

The Decoration Allowance budget for empty properties and compensation for damage caused by repair work in 2004/05 was £50,000.  The total value of allowances paid in the first 6 months was £23,460 with all but £645 being allocated to customers taking new tenancies.  If the same rate of expenditure was to continue to the end of the year, the budget would be 94% spent.  On average decoration allowances were allocated to 36% of all new tenants, the average amount being £66.32 to decorate approximately 3 habitable rooms.

A Decoration Allowance budget of £75,000 was provisionally allocated in the draft Annual Maintenance Plan for 2005/06.  This was based on the maximum amount per room for voids remaining at £25.00 and allocation rate remaining at 36%.  Benchmarking revealed £25.00 per room was the equal lowest with 1 other authority, other social landlord’s standard rates being significantly higher.  It was proposed that the Policy be evaluated in March, 2005, to enable an assessment to be made as to whether or not a sustainable rise in the allowance could be made for the start of the new financial year.

Discussion ensued on the post inspections to be carried out in accordance with the Audit Commission and the work incurred.  It was suggested that a 10% random selection of cases would give the quality control and check required.

Resolved:-  (1)  That the introduction of the revised Decoration Allowance Policy and Procedure be approved and the timetable for evaluating the Service be noted.

(2)  That a report on the issue of evaluation be submitted 3 months after the commencement of the ALMO.

(3)  That the report be referred to the Environment Scrutiny Panel for comment.