Agenda item

To seek approval for the proposed values of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2023/24.

Cabinet Portfolio: Housing

Strategic Directorate: Adult Care, Housing and Public Health

The Chair welcomed the Cabinet Member for Housing to the meeting. The Cabinet Member introduced a report seeking approval for the proposed values of the housing rents, non-dwelling rents, District Heating and service charges and the draft Housing Revenue Account Budget for 2023/24.

Also in attendance were the Strategic Director for Adult Care, Housing and Public Health, the Assistant Director for Housing and Interim Head of Services.

The Cabinet Member outlined that there was a requirement for the Council to produce a plan which would allow the Council to maintain and develop its stock. It was noted that the Government policy had capped social rents at 7% and this was reflected in the proposals for a corresponding increase in dwelling rents and shared ownership rents (Option 1). It was outlined that there was a proposal for a 6% increase to charges for garages, communal facilities, cooking gas and laundry facilities. In respect of district heating, it was noted that the Council had cushioned the affect of energy price rises, however in order for the scheme to break even in the long term, the unit charge per KwH would be increased by 186.43% and weekly prepayment charges increased by a maximum of 150% (dependent on property size).  Approval was also sought to retain the policy of rent realignment to formula rent levels for re-let properties.

Options for housing rents and district heating charges were detailed in the report.

The Chair invited questions from the committee and a discussion on the following issues ensued.

·      Clarification was sought on how tenants using district heating would be supported. It was outlined that the current cost model was not sustainable which was why it was being raised. It was noted that the existing taper was in place and there was parity across the charges. The Tenancy Support Team would work with tenants to maximise take-up of benefits and vouchers for pre-payment meter energy support. The report contained details of the number of tenant households in receipt of Universal Credit and/or Housing Benefit.

·      Details were requested on the process for raising formula rents, noting that it would take approximately 12 years to achieve parity. It was outlined that the Council was following the process and timescales outlined by Government policy.

·      It was suggested that clear communication should be issued to outline the reasons behind the increases to the district heating charges and where support was available.

·      Assurance was sought that officers would work with tenants, including those not in receipt of benefits. It was noted that affordability tests were conducted prior to tenancies being offered.  If surplus payments were accrued on pre-payment meters, this was paid back to the customer at regular intervals

·      Information was sought if lower service charges could have been introduced to mitigate the compound impact of charges. It was noted that the recommended position was required to avoid a deficit.

·      Clarification was sought if consideration had been given to how the proposals may impact on tenants with long term health conditions or disabilities who may not be in receipt of Universal Credit or Housing Benefit. It was reiterated that the Financial Team are able to offer advice and there were tenancy support options available. A request was made that consideration be given to providing financial support for people in receipt of Personal Independence Payments or have a long term health condition.

·       The communication strategy in respect of Money Matters was welcomed. Details were sought if communications had been considered to target those on district heating, with a specific request made that drop-ins and targeted materials should be available. In response, it was outlined that this would be considered. In addition, tenants would be given an annual projected bill and offered advice to assess their ability to pay and establish if additional support was required.

The Chair thanked the Cabinet Member and Officers for their contributions.

Resolved:

1)    That Cabinet be advised that the following recommendations be supported.

“That the Cabinet note the content of the report and recommends to Council:

1.    That dwelling rents are increased by 7% in 2023/24 (Option 1) in line with the latest Government policy on rents for social housing which caps rent increases to 7% for 2023/24.

2.    That shared ownership rents are increased by 7% in 2023/24 (Option 1) as per the increase on Council dwelling rents.

3.    That there is a 6% increase in charges for garages and parking spaces, communal facilities, cooking gas and use of laundry facilities.

4.    That Cabinet note the £1.65m ‘cushioning’ effect that the Council has put in place through the District Heating Scheme in 2022/2023 rising to £2.593m for 2023/2024 subject to Recommendation 6 below.

5.    That the Council retain the Energy Bill Relief Scheme amounts to offset some of the deficit incurred in cushioning tenants from energy price rises.

6.    The unit charge per Kwh is increased by 186.43% and weekly prepayment charges are increased by 44% to 150%, depending on property size, for District Heating Schemes in 2023/24 (Option 1) to enable the Scheme to break even in the long term.

7.    Approve the draft Housing Revenue Account budget for 2023/24 as shown in Appendix 2.

8.    That the Council retain the policy of realigning rents on properties at below formula rent, to the formula rent level when the property is re-let.”

2)    That consideration be given to whether additional measures, such as tenancy advice and support, could be introduced to mitigate the impact of rent increases for residents who are particularly vulnerable to changes in rent levels (for example recipients of Personal Independence Payments and Disability Living Allowance for children).

3)    That consideration is given to developing a communication strategy, including drop-in sessions, to raise awareness of changes to the district heating charges and support available to households.