Agenda item

(a)       That the Committee notes the latest projections on rent arrears for the year ending 2016-17;

(b)       That the Committee endorses the measures being taken to support tenants and to deliver sustainable tenancies;

(c)       That the Committee supports the robust steps taken to recover arrears from tenants who, despite all preventative measures, make little or no effort to pay; and

(d)       That the Committee endorses the recommendation not to link rent arrears with the rollout of the WHQS Programme and to continue to deal with rent arrears using existing procedures and protocols.

The Revenues Manager presented an operational update on income collection in the Housing Revenue Account (HRA), including implications to date of the welfare reform programme and key risks arising from the impending full rollout of Universal Credit.

The report contained a table showing movement in rent arrears over a six year period.  Projections for the end of 2016/17 indicated total rent arrears of around £1.19m, equating to 3.5% of the annual rent yield, which was a slight improvement on the previous year.  The increasing challenges of welfare reforms were highlighted, particularly in relation to the Benefit Cap and Spare Room Subsidy where figures showed the impact on rent arrears and the additional burden on the HRA.  The report detailed the Council’s approach in encouraging early intervention and engagement with tenants to prevent the risk of escalating rent arrears.

The Interim Senior Manager referred to a suggestion previously made to consider deferring work in the Welsh Housing Quality Standard (WHQS) programme for those tenants who were in serious rent arrears.  However, this approach was not recommended due to there being no provision in the national guidance and the cost implications involved in delivering work in this way.  The Revenues Manager explained that strategies were already in place to tackle rent arrears including robust action for those who chose not to engage with the Council.  Following a question from the Chairman, he explained the availability of Discretionary Housing Payments as a short-term solution only.

Councillor George Hardcastle thanked officers and said that the impact of welfare reforms on rent collection was inevitable.

Councillor Ian Dunbar questioned how some tenants had been able to accumulate significant amounts of rent arrears.  Councillor Helen Brown said that there were a number of cases involving tenants settling their debts on the day of eviction following action taken by the team.  The Chief Officer advised that the implications of further welfare reforms and associated risks to rent collection would be discussed at the meeting in March 2017.  The Revenues Manager reiterated the support available to work with tenants on reducing the risk of rent arrears as far as this was practicable, however there were some cases where tenants had the ability to pay but delayed this until faced with the prospect of eviction.  In the case of county court action, consideration was given to individuals’ ability to pay when making the judgement and the Council was required to accept those payment terms.  Repayment terms over a prolonged period were closely monitored to ensure that obligations were met.

Councillor Rosetta Dolphin spoke of the difficulties for those who were unable to keep up with their rent payments due to welfare reforms.  She asked how many of the tenants subject to the Spare Room Subsidy had requested a transfer to smaller council homes which were in high demand.  The Chief Officer said that these figures would be included in the update report to the March meeting.  She referred to the Council’s policy in adopting a different approach to individuals who were seeking a genuine solution in this way, however only a small percentage of tenants had asked to transfer and were prioritised.  The Revenues Manager explained that the majority of tenants impacted by the Spare Room Subsidy were not currently in rent arrears and that evidence showed that most tenants preferred to remain in their property and bear the extra cost rather than pursue a transfer.

The customer-focussed approach was welcomed by Councillor Hilary Isherwood who said that tenants deliberately avoiding payment until the point of eviction should be penalised.  The Revenues Manager shared these frustrations but gave assurance that court fees were recovered in addition to the full rent amount.  On Discretionary Housing Payments, he advised that funding was guaranteed for 2017/18 but was uncertain beyond that.

The Chief Officer expressed her concerns about the increasing adverse impact on more tenants arising from the next phase of welfare reforms which would be reflected in the next update to the Committee.

Councillor Gareth Roberts spoke about local Member involvement and the introduction of direct payments to the landlord as means of helping tenants.

RESOLVED:

(a)       That the Committee notes the latest projections on rent arrears for the year ending 2016-17;

(b)       That the Committee endorses the measures being taken to support tenants and to deliver sustainable tenancies;

(c)       That the Committee supports the robust steps taken to recover arrears from tenants who, despite all preventative measures, make little or no effort to pay; and

(d)       That the Committee endorses the recommendation not to link rent arrears with the rollout of the WHQS Programme and to continue to deal with rent arrears using existing procedures and protocols.