Agenda item

This report seeks approval from the Committee to implement depooling of rents and services charges with effect from 1 April 2024, thereby enabling the Council to recover fully where possible - in a fair and transparent manner, the costs we incur delivering services to our residents; some of which are currently subsidised by the Housing Revenue Account (HRA) or other residents.

It also seeks approval of the new Rents and Service Charges Policy.

The Income & Systems Manager introduced the report and explained that the depooling of rents and service charges would allow for greater transparency of the services offered and their costs to tenants. She explained there would be a large consultation period for tenants to share their views. She highlighted the following key points:

·         Depooling would allow 100% of costs incurred through services offered to be recovered currently some costs were subsidised by the Housing Revenue Account.

·         The charges would be included as part of the budget setting for the Committee to consider in December 2023.

·         A gradual implementation was proposed as an option to support existing tenants with additional charges over the coming 3 years.

·         The Committee was also being asked to approve the Rents and Service Charges Policy at appendix A which had been updated.

Councillor Housden asked for reassurance regarding the potential for some tenants to be at risk of greater costs. Officers confirmed that there was a potential for some tenants to receive an increase in costs due to the current subsidy however this would enable tenants to be aware of what services they receive and pay for them accordingly. Tenants would also be given the option to choose which services they require and therefore have greater control of their overall costs.

The following answers were given to Members in response to questions asked:

·         The costs for services would be included in the benefit payments for tenants who qualify and there would be an additional hardship fund set up for vulnerable tenants.

·         The charges would need to come back to Committee for approval before they could be implemented, and Councillors could still request to make further changes after the initial consultation period

·         They would be holding surgeries in Housing Hubs for tenants to come in and ask questions. They would also be sending a refreshed rent notification which detailed the changes as well as completing door knocking in order to communicate directly with tenants.

Councillor Green questioned whether the resolution should be changed to reflect that the charges still needed to be approved. The Accountancy Manager explained that this was to start the process and would allow for the consultation to take place.

Councillor Jockel proposed an amendment to amend the resolution as follows:

The Committee resolves to approve: a) the principle of depooling of rents with effect from 1 April 2024 and detail of service charges brought back to committee in December 2023; b) new and re-let tenancies will be subject to the formula rent and service charges with effect from 1 April 2024; and c) the Rents and Service Charges Policy as at Appendix A. Councillor Housden seconded.

Councillors agreed to the amendment.

Councillor Jockel proposed and Councillor Housden seconded.

After being put to a vote, the Motion was carried unanimously.

RESOLVED To approve:

a)    the principle of depooling of rents with effect from 1 April 2024 and detail of service charges brought back to committee in December 2023;

b)    new and re-let tenancies will be subject to the formula rent and service charges with effect from 1 April 2024; and

c)    the Rents and Service Charges Policy as at Appendix A.

Councillor Housden left the meeting.