Issue - decisions

Matter for Decision

The Rent Arrears Policy was last approved in 2010.

 

The Housing Debt Related Policy has been amended since approval in 2010 and extends the term of repayment to six months and a reduction of the original debt by 50%.

 

The Officer’s report sets out information regarding the performance of current and former tenant arrears, plus the City Council’s approach to supporting tenants’ affected by the Welfare Reforms.   

 

The expected benefit cap has been deferred to September 2013. A wealth of changes was expected from Central Government, the Council would support tenants through the process.

 

Decision of Executive Councillor for Housing

(i)                Approved the revised Rent Arrears Policy.

(ii)              Approved the revised Housing Debt Related Policy.

 

Reason for the Decision

As set out in the Officer’s report.

 

Any Alternative Options Considered and Rejected

Not applicable.

 

Scrutiny Considerations

The Committee received a report from the Area Housing Manager regarding the Rent Arrears Policy and the Housing Related Debt Policy.

 

The Committee made the following comments in response to the report:

 

(i)                Suggested that Tenant Representatives could be further involved in officer communication with tenants to ensure messages were expressed in plain English.

(ii)              Labour Councillors felt rent arrears levels were high and the Council were unlikely to get all monies back.

(iii)            The Executive Councillor for Housing was trying to strengthen and signpost credit unions as part of the portfolio of rent arrears preventative measures.

 

In response to Members’ questions the Director of Customer & Community Services, Head of City Homes, Head of Revenues and Benefits plus Area Housing Manager confirmed the following:

 

(i)                It was currently understood that payments of universal credit would not be backdated. Therefore a proactive process was required to prevent tenants slipping into arrears.

(ii)              The Council was currently monitoring the impact of benefit reforms for trends as changes are introduced, so the Council could provide guidance and support. Officers were visiting tenants to get a clearer idea of their housing needs as benefits are changed, instead of waiting passively to be contacted.

(iii)            Some tenants were downsizing in response to benefit changes, the associated reduction in rent cost could reduce possible rent arrears.

(iv)            Rent arrears were the same in January 2013 as they were 26 years before (1987). The Council was in the best position it could be prior to the implementation of benefit changes. The Council would work with tenants to better structure debt repayments.

(v)              Rent arrears could arise from delays in tenants receiving benefits prior to paying rent. Pathfinder authorities were reviewing the impact of benefit delays on rent arrears as part of the benefit change process, but it was expected they would form a small proportion of the overall figure. Officers were concerned that issues may arise as universal credit would be paid one month in arrears from the date of claim, hence the Council was proactively working with tenants to anticipate and overcome issues where possible in advance.

(vi)            Rent collection rates were good as officers picked up on debt at an early stage. Officers proactively engaged with tenants when arrears started to arise.

(vii)          Tenants could sub-let their properties, but this would impact on their benefits.

(viii)        The Council did not have a policy to turn down potential tenants, which is why it some times took on people with rent arrears. The expectation was that debts should be cleared prior to the Council taking former tenants back as new tenants. The Rent Arrears Policy proposed that if the debt could not be paid as a lump sum, payment by instalments was expected instead. An instalment repayment plan based on individual circumstances was the preferred option to making people homeless; the Council only evicted people as a last resort. The Council preferred to give people time to resolve money issues, which was why arrears arose. Decisions regarding actions to take on rent arrears were made on an individual (tenant) basis, there was no blanket approach.

(ix)            There were no rent discounts for properties adapted for disabled need. The property tax band would be changed instead.

 

The Head of Revenues and Benefits undertook to provide further information to Councillor Bird who asked if a person would/would not be affected by the benefit cap if they, their partner or a dependant child who is living with them received benefits.

(x)              Tenant arrears include debt accrued over six years, none of which has been written off.

(xi)            The new Rent Arrears Policy would cover any new tenants the Council took on, the old policy would cover existing tenants.

 

The Committee unanimously resolved to endorse the recommendations.

 

The Executive Councillor approved the recommendations.

 

Conflicts of Interest Declared by the Executive Councillor (and any Dispensations Granted)

Not applicable.