Agenda item

That the improvements in rent collections for 2019/20 which showed that collection of rent had resulted in higher level of collection, lower levels of bad debts and a final outturn where total arrears had reduced by £65k be noted.

The Revenues Manager presented the operational update on the 2019/20 year end outturn for housing rent collection.  He provided a presentation which covered the following areas:-

• Rent Collection: 2019/20 outturn;
• 19/20 - Cases leading to eviction for non-payment;
• Analysis of Rent Arrears by claim type;
• Tenants in Rent Arrears - March 2020; and
• Rent Collection: 20/21 Latest Position (to week 13)

In response to comments from Councillor Ted Palmer around tenants finding themselves in arrears as a result of the COVID-19 pandemic, the Revenues Manager outlined the early engagement with tenants to enable the Council to provide assistance and support early on.

Councillor Rosetta Dolphin asked how many more tenants had found themselves in debt due to the closure of the Connects Offices as a result of the COVID-19 pandemic and why the Connects Office in Holywell was not due to open at the same time as others in Flintshire.  She was concerned about this as this office covered a wide geographical area in Flintshire.  The Revenues Manager said that there had been challenges with tenants who relied heavily on cash payments and who had been unable to make payments in their usual manner.  The Council had been engaging with those tenants, and where possible, encouraging them to make alternative arrangements, with around 100 additional tenants now paying by direct debit.  The advice provided to tenants where they wanted to continue to make cash payments, had been to ensure payments were made, when practicable to do so.  The Chief Officer (Housing & Assets) explained that prior to the Connects offices being re-opened a risk assessment had to be carried out and he suspected that the reason the Holywell office was opening later, had been due to the level of risk.

Councillor Paul Shotton commented on the positive impact of the ‘Spend to Save’ initiative but raised concerns around the Universal Credit scheme and the five week wait for payment to recipients.  He also commented on the Department for Works and Pensions (DWP) payment of £300k which had been received after the rent accounting year ended and asked if this had been a one-off occurrence or was the annual payment from DWP always received following the accounting year ending.  The Revenues Manager explained that more tenants had migrated to Universal Credit due to the COVID-19 pandemic.  Those tenants were moved to managed payments but the wait for payments from DWP took some time and it was hoped that there would soon be a change in the length of time that payments were sent from DWP to the Council, as this was currently being reviewed. 

In response to a question from Councillor Brian Lloyd around rent arrear hotspots, the Chief Officer explained that identifying hotspots would not be helpful and that within all Communities there were a small amount of tenants who refused to pay and engage with the Council.

Councillor Ron Davies raised concerns around Universal Credit and the negative impact this had had on tenants.  He asked whether all tenants could be asked to set up direct debits to make payments to the Council.  The Revenues Manager explained that the Council did encourage tenants to pay by direct debit in order to assist them in managing their income.

In response to a question from Councillor Rush, the Revenues Manager outlined the process in dealing with tenants who did not wish to engage with the Council and where their debt levels continued to increase.       

                        The Chief Officer (Housing & Assets) commented on the amount of positive intervention which had been made to assist in reducing the debt levels prior to the COVID-19 pandemic.  Councillor Dave Hughes, Cabinet Member for Housing also comments on the significant improvements that had been made and said that the current situation should only be for the short term.

Councillor Palmer proposed that the Committee support the recommendation as outlined within the report.  This was seconded by Councillor Shotton. 

The Chair thanked Officers for their attendance and for providing the information contained within the reports.

RESOLVED:

That the improvements in rent collections for 2019/20 which showed that collection of rent had resulted in higher level of collection, lower levels of bad debts and a final outturn where total arrears had reduced by £65k be noted.