Agenda item

The Director of Housing submits a quarterly rent arrears progress report to the Housing Scrutiny Commission for the period April 2016 to June 2016, as requested. Members are asked to note the report.

The Director of Housing submitted a quarterly rent arrears report to the Housing Scrutiny Commission as requested for noting. The report covered the period April 2016 to June 2016. Vijay Desor (Head of Service) and Mike Watson (Income Collection Manager) presented the report for the period 4^th April 2016 to 27^th June 2016.

It was reported that there was an increase of £222k compared with the same period in 2015, an increase of 14%. It arose from the cumulative impact of welfare reforms and a difficult financial environment, though it was believed a target of £1.5million arrears was achievable. More serious arrears had increased by 0.26%, though they were significantly lower than two years ago. The number of cases affected by the bedroom tax had fallen to 8.2% of tenants, though arrears for those affected had increased by 5.4% (£9,872) in the first quarter.

Members noted that the number of evictions had increased, with 25 evictions carried out during the report period of which nine were family cases and 16 single people, and possibly external factors had put pressure on the finances of families. Evictions were a last resort and the Council ensured all avenues were explored to avoid that option.

Members were informed there were 137 cases owing more than £1k and 70% of those cases also had Council Tax arrears of more than £500. Some 70% of cases with arrears received partial or full benefit. Families not dependent on benefit appeared to be managing better than those on the lowest form of income and benefit dependent, who were also more likely to have multiple debts than those not on benefits.

The Rent Income Excellence Network (RIEN) performance data at the end of the financial year April 2015 to March 2016 showed that the Council was in a better position than average for rent collection at 97.88% for the last quarter.

The Chair noted that officers had done a remarkable job in what was a very difficult financial climate, with people having budget pressures.

In response to further comments made by Members it was noted that:

·         It was difficult to generalise that people in receipt of benefit couldn’t manager or didn’t have enough income. At the start of a tenancy, Income Management had a robust policy to undertake a financial benefit statement with tenant. Accounts were continually monitored, and contact was made with the tenant at first indication of a problem with payment. Support was given with the focus that rent should be paid.

·         The £2million void loss included the refurbishment of the St Peters tower blocks. The figures contained in the glossary at Appendix 1 to the report were indicative for the graph, and were not accurate.

·         The Income Management Team was not scoped into the current Housing review.

·         Universal Credit (UC) continued to be rolled out, with the programme extended to 2022. In January 2016 UC was introduced to new single claimants, and 120 cases in Leicester had been affected so far. Also, people moving to Leicester who were on UC would remain so.

·         Discretionary Housing Payment was awarded for 13 weeks, following which the Revenue and Benefits Team would review. Information on repeat DHP payments would be provided to Members in future reports.

The Chair thanked the officers for the report.

AGREED:

that;

1.    The report be noted;

2.    Information on repeat Discretionary Housing Payments be included in future reports.