Agenda item

Report of the Director of Housing.

The Director of Housing submitted a report following the request at Full Council on 18 September 2025 that Overview Select Committee consider the Council’s letter to the Secretary of State, together with his reply, in considering whether a payment should be made.  The City Mayor’s letter to the Right Honourable Steven Reed MP, Secretary of State, and the response from Alison McGovern MP, Minister of State, were appended to the report.

The Chair clarified that the Committee did not have decision-making power over this issue.

The City Mayor introduced the item and made the following points:

• The Council had been clear about the circumstances that they found themselves in, and in the response from the Minister it had been recognised that the Council had dealt with this effectively, noting that the numbers of families in Bed and Breakfast accommodation had fallen by 94.7% from June 2024 to June 2025 as the result of investment in providing alternatives.
• There was no intention on the part of Government to change the law.  The 6-week target had been set and the Government would not want to relax that target.
• The Minister had been clear that the department did not interfere with the Ombudsman's investigations or how local authorities choose to respond to their findings.

In discussions with Elected Members, the following was noted:

• In response to a question on preventative measures and the accountability measures in place, it was noted that there was an aim to provide temporary accommodation that was fit for purpose.  £45m had been invested in temporary accommodation, providing 350 home units, of which 242 were family homes.  Data was being reviewed, and projections were being looked at to see what more could be done.
• Points were raised about the moral principle of the need to pay compensation, and it was moved to recommend that the case be settled in full.
• In response, it was noted that the injustice was recognised, however, the Ombudsman had recognised that suitable temporary accommodation had not been available in the City at that time. It was confirmed that there were now more options available. It was stressed that this was not a wilful mistake.
• The point was raised that private accommodation had been found, but the Council had refused to fund it.
• It was noted that law was not retrospective and if Regulations were broken two years ago, even if the Government were minded to change the regulations, it would not apply in this case.
• It was noted that legislation dated from 2003, and that the housing crisis had developed and intensified since then, making it increasingly difficult for the authority to meet those standards. The request to Government asked them to recognise that the housing situation today was now very different.
• It was clarified that the decision on this matter was an Executive one, which had been taken and published, following which the Ombudsman had issued a second report which was reported to Full Council.  The Ombudsman was expecting a final response.

·      It was further noted that recommendations were not binding on the Executive, but if the Committee wished to move a recommendation for payment, it would be a matter for Scrutiny Members.

·      In response to a query from a Young People’s Council representative regarding vacant housing lets, it was confirmed that the vacancy rate remained well below the industry benchmark of 2%, despite Covid-related challenges. A fuller discussion could be held with the Young People’s Council and the Housing Scrutiny Commission could also address queries.

Councillor Kitterick moved that the Committee recommend that the case be settled in full.

This was seconded by Cllr Porter and upon being put to the vote the motion was DEFEATED.

AGREED

1) That the report be noted.

2) That comments made by members of this commission to be taken into account by the lead officers.