Agenda item

The Director of Housing submits a quarterly rent arrears progress report to the Housing Scrutiny Commission for the period 3^rd October 2016 to 1^st January 2017, as requested. Members are asked to note the report.

The Director of Housing submitted a quarterly rent arrears progress report to the Commission for the period 3 October 2016 to 1 January 2017 for noting.

Vijay Desor (Head of Service) and Zenab Valli, Income Collection Manager, presented the report, and made the following points:

·         The rent arrears at the end of Quarter 3 were £62,000 higher than for the same quarter in 2015/16, but £108,000 lower than in the same time in 2014/15;

·         The service was confident the target of £1.5million by the end of the year would be met;

·         There would be an additional £157,000 cash to be collected as a result of the Benefit Income Cap (BIC), due to the lowering of the cap ceiling;

·         The Service was continuing to maximise rent collection activities despite economic pressures faced by many households. Most tenants were engaging with the council and continued to pay their rent in a timely manner;

·         Actions included the introduction of Direct Debit (DD) arrangements to give tenants the opportunity to pay rent on time. Older people would be assisted to complete forms to move to DD;

·         A web-based rent self-serve facility would be introduced to allow tenants access to their rent statements and arrears balances instantly.

In response to Members’ questions, the following information was given:

·         Comparable rent figures were gained from the Housing Quality Network, and occasionally comparable authorities were contacted for information;

·         With regards to a freeze in benefits, any reduction in disposable income for tenants would impact on rent collection. Rent had reduced by 1%, so there had not been as much of an impact on arrears as expected. The number of low paid tenants relying on welfare payments was increasing, and other welfare reform changes might drive arrears up;

·         The Income Management Team undertook early intervention to prevent high rent arrears and tried to assist a tenant in the best possible way to ensure they got the right support and prioritised rent payments. They also offered assistance with income maximisation with benefits, universal credit, etc. Members requested the age profile of tenants with rent in arrears be provided, though it was noted that older tenants tended to be better at paying their rent;

·         There were challenges with Universal Credit, with an eight-week wait for tenants to receive benefit and guidance would be sought from other councils who were further ahead with the process;

·         Rigorous methods were applied to recover debt. The Exchequer Team assisted with recovery to make contact with former tenants evicted. Evictions were a last resort as recovery of debt was easier when dealing with a current tenant. If a former tenant with a debt entered the system again, Housing Options would liaise to assist in the recovery of the debt;

·         People losing Employment Support Allowance from the Department for Work and Pensions (DWP) had the right to appeal and could apply to have Housing Benefit reinstated. Tenants would be referred to Welfare Rights to assist with the appeal process, to food banks, the Supporting Tenants and Residents Service (STAR) and charity links to help pay for service charges;

·         Tenants could go to Citizens Advice for assistance with form filling. The Income Management Team would also assist over the phone or ask the tenant to attend duty appointments with the Income Management Team to complete forms;

·         There were robust systems to support those who went through the hostel route into a tenancy. More often than not first time tenants facing eviction had not come through the hostel system but had been given a flat from the list, and the individual might be overwhelmed with bills and by looking after a property. Other evictions might be the result of sanctions from the DWP. It was officers’ role to engage with tenants to offer support and prevent evictions.

The Chair thanked the Officers for the report.

AGREED:

that:

1.    The report be noted;

2.    The Director of Housing to provide the age profile of tenants with rent in arrears.