Agenda item

The Director of Housing submits a report to the Housing Scrutiny Commission of progress on rent arrears from April 2018 to March 2019.

The Director of Housing submitted a report of progress on rent arrears for the financial year from April 2018 to March 2019.

Zenab Valli, Income Collection Manager, presented the report. The following points in the report were highlighted and Members’ questions answered:

·         A 4.34% decrease in more complex cases was recorded.

·         Of the 35 evictions, eight were family cases.

·         1,879 council tenants made a new claim under Universal Credit (UC) – 9.32% of all current council tenants.

·         Rent Management Advisors supported the most vulnerable tenants to help set up email and bank accounts to assist tenants with rent payments.

·         Income Management Officers had assisted 704 UC claimants from Job Centre Plus Offices, 46% of which were council tenants. Some claimants had just required advice and signposting.

·         The Housing Online (Rent Self-serve) portal had been rolled out successfully.

·         The Team was maximising rent collection activities despite economic pressures on tenants.

·         For people moving onto UC, there was an initial spike in rent arrears which would in time balance out and stabilise.

·         Families moving onto UC that had not had benefits before could claim for an advance. Also, STAR provided tenancy sustainment, particularly for vulnerable families who could be referred for specialist support. The Chair requested a breakdown of rent arrears by ward to be included in a future report to the Commission. It was noted that there was very little council stock in some wards.

·         It was noted that there would be an additional £25.25 million to be collected, and requests to pay direct to landlords on individual cases not always agreed. Officers were constantly looking at ways of maximising collect and used Clockwise rent payment accounts to promote regular payments. It was noted that rent collection was a ring-fenced account which went to the HRA budget to provide all of the service. A review of arrangements in the Income Management Team was underway to continue to provide effective and strong services

·         If the Department for Work and Pensions (DWP) make a negative decision on claims, the Team engage with the tenant to support and could ask Welfare Rights to assist the claimant to make a challenge with the DWP so the claim can be reconsidered.

·         Pensioner couples, where someone of pensionable age and the other not were expected to make a UC claim was also a concern, but no actual details of how many people this affects or consequences  were currently available.

·         GDPR regulations did not allow officers to see private tenants’ rent and UC claims, though the Council did assist private sector tenants at risk of homelessness that required help through difficulties with UC while they are working at DWP offices. There was also the floating support service and homeless prevention officers available in each of the three DWP offices for those potentially facing homelessness.

·         The 500 cases with the highest arrears were hard and complex to manage. A lot of work by the team and combination of factors had brought the total of arrears down.

The Chair thanked the officer for the report.

The Chair requested information on the processes of rent collection, courts, etc for new Members on the Commission. Members of the Commission were invited to visit the Income Management Team, and a suitable date would be arranged by the Director of Housing.

AGREED:

That:

1.    the update be noted.

2.    a breakdown of rent arrears by ward to be included in a future report to the Commission.

3.    the Director of Housing to arrange a suitable date for Commission Members to visit the Income Management Team.