Agenda item

To consider a briefing in respect of the impact the cost-of-living crisis is having on Housing Services and the response.

Consideration was given to a briefing report presented by the Assistant Director of Housing and the Business and Commercial Programme Manager in respect of the impact the cost-of-living crisis is having on Housing Services and the response. In the context of high inflation, the Council kept under review whether the current housing service offer meets the evolving needs and priorities so that resources can be targeted effectively. This briefing provides an overview of the current position and changes to the Council’s approach. The briefing identified three key stages in how the Housing Service supports tenants, who are some of the most vulnerable residents in Rotherham who will be affected to varying degrees by the cost-of-living crisis.

Three key stages on the tenant’s journey were described. Affordability assessments and income and expenditure checks were described as part of the Housing Allocation and pre-tenancy support phase.  Some checks are light touch whilst others are more in depth depending on the needs of the prospective tenant. The aim of the Service is to offer appointments for checks in greater numbers and to offer some appointments to the homelessness service.

Income collection for housing rents had been top quartile in national benchmarking for several years following the service transformation which took place in 2017. The Service had to balance the fact that it is often the housing provider of last resort against the need to maintain a healthy Housing Revenue Account to fund vital services to tenants and investment in housing growth.

Income collection is undertaken in accordance with the Ministry of Justice Pre-action Protocol. The Council had a twelve-stage process for the escalation of rent accounts in arrears. Over the past five years, there had been a significant reduction in the number of tenancies failing due to rent arrears which was reflected in the relatively small number of evictions.

Arrears recovery commences when an account is three weeks net rent or more in debt (and minimum arrears balance of £30). The recovery processes continue on a weekly basis until a Notice Seeking Possession would be served at week five unless the arrears balance is less than £355 (proportionality of debt vs costs). This is if the tenant does not engage with the Council to put a payment plan in place. Where a tenant is at risk of losing their tenancy a referral is made to the Tenancy Support team who provide holistic support to tenants.

The handling of credit balances, tenancy support provision, and the approach to tenancy health checks were also described. Referrals into the team were rising and it was expected that the complexity and the rate of referrals would continue to rise. Given the increase in rents and service charges, alongside the significant increase in the cost of living, it was thought likely that income collection rates will deteriorate, and current tenant arrears balances will increase during 2023-24. That said, similar deterioration in performance had been expected in 2022-23, which to date had not materialised. In view of the success of collection and the extensive support that is provided to tenants through the rent recovery process, it was not intended to adjust the current process.

In discussion, Members noted the good financial performance, especially against benchmark authorities, and stressed the importance of affordability in sustainable tenancies.

Members requested further clarification around timescales reflected in the charts. The response from officers noted that the figures illustrated up to December and the and also for the full year and included the tenancy breaches. Further clarification was provided that the figures included December to May, and that the Service had 190 evictions in the last three months. This was believed to be an effect of coming out of the Covid-19 pandemic and followed a backlog of processing of evictions through the courts.

Members sought further reassurances around the approach to initiating the process when someone was three weeks or more in debt, as some people who pay weekly may not know they are behind. Furthermore, members sought reassurances that the Service took account of universal credit timelines which could take up to six weeks or more. The response from officers noted that if a tenant goes three weeks of more into arrears, they get a letter advising them that they are in arrears. If someone is not in a direct debit payment, if it is out of their normal payment cycle, this will correspond to the timescales appropriate for their individual payment cycle. The service did not get a notification if a tenant transfers onto universal credit. The Service did not have a way to know unless notification is received from the tenant or from the DUP themselves. 

Members sought further reassurances that arrangements around credit balances are agreed with tenants. The response from officers provided assurances that, if a tenant calls and they are in credit, the Service will issue a refund, maintaining a one-week credit. The Service refunds between £60,000 and £70,000 per week. The campaign to refund is ongoing. Because a week in advance was desired, many people choose to be more in advance than that.

Members sought additional information around wait times between referral and appointments, and how expanding the team would bring down waiting times. The response from officers noted that wait times had been increased. Although upon the referral, there was contact immediately, and some tenants had issues that could not be delayed. Telephone triage was done immediately. Tenants get help with claimants within a few weeks. The team were in the process of recruiting and had immediately seen a drop in waits. Five referrals a week were being handled promptly.

Resolved:-

1.    That the report be noted.

2.     That the feedback of Members be noted.