Agenda item

Members: please note that officers are recommending that the Service Charge be raised by a lesser amount than agreed at the meeting of the Housing and Environment Committee.

Reference was made to article 19 of the minute of meeting of the Housing and Environment Committee of 26 October, 2010, whereby members considered the financial implications associated with the continued use of bed and breakfast accommodation. The report had proposed, amongst other things, (1) that the charge the Council pays to bed and breakfast proprietors be reduced; and (2) that the service charge for temporary accommodation be increased. Both of these proposals required the approval of this Committee.  The Committee had before it on this day, the relevant minute extract from the aforementioned meeting of the Housing and Environment Committee, and a report by the Director of Housing and Environment which provided further information on the proposals. The report (1) outlined the reasons for the cost pressures occurring; (2) detailed the current financial position in this regard; and (3) detailed the proposals that had been agreed at the Housing and Environment Committee (subject to the approval of this Committee), as follows:

• That the number of bed and breakfast establishments being used on a daily basis, be reduced to 100 (from 160) by (a) requiring applicants to stay in their current accommodation for one month in order for their situation to be properly assessed; (b) encouraging more use of hostel accommodation; and (c) working with intentionally homeless and non priority persons in temporary accommodation with a view to moving them on timeously.
• That the charge the Council pays to bed and breakfast proprietors be reduced, by negotiation, to an average of £37 per night.
• That the service charge levied per week to cover the management cost of temporary furnished properties, be increased from £152 per week, to £300 per week. This increase would need to properly managed to ensure that it was eligible for housing benefit, and adequate documentation would require to be produced in order to satisfy any future external audits. Further, the report advised that temporary accommodation properties attracted a full subsidy from the Department of Work and Pensions, so any additional revenue would supplement existing departmental budgets.

In relation to the proposal to increase the service charge for temporary furnished properties, the report suggested that an annual agreed uprating would ensure that charges remained consistent with costs.

The Committee noted that the Housing and Environment Committee had approved that the service charge levied per week to cover the management cost of temporary furnished properties be increased from £152 per week to £300 per week, but that officers had undertaken further work on this, and were now only proposing an increase to £250.33 per week.

Members raised concern at how this proposal may be a huge disadvantage to a person who is employed (due to the fact that the service charge would not be covered by benefits). The Homelessness Manager explained this would be dealt with on a case by case basis, and that there were ways of mitigating the strain on tenants.

The Committee resolved:-

(i)         to note the current position;

(ii)        to approve the proposed actions to reduce the usage of bed and breakfast accommodation, and to therefore approve the reduction in the charge the Council pays to bed and breakfast establishments; and

(iii)       to approve the increase in the service charge from 13 December, 2010 to £250.33 per week for temporary accommodation flats.