Issue - meetings

To receive a report from the Deputy Chief Executive (S151) Officer and the Head of Housing and Health on the Housing Rent Error Update Report.

The Cabinet had before it a report * from the Deputy Chief Executive (S151) Officer and the Head of Housing and Health on the Housing Rent Error update report.

The Cabinet Member for Governance, Finance and Risk outlined the contents of the report with particular reference to the following:

• The report provided a comprehensive update on the ongoing work to address the historic housing rent setting error.
• He emphasised that this was a live and active project.
• Since it first came to light, it had been subject to significant scrutiny not only by Cabinet in December, but also through detailed review by both the Homes Policy Development Group and the Audit Committee.
• The corrective work had progressed well, with external assurance received, refunds were now being calculated and a clear strategy was in place for reviewing historic possession cases.
• However, as the report outlined, there were still elements that remained dependent on external factors, particularly the Department for Work and Pensions, which meant that this work would continue to evolve.
• The Council was committed to transparency and accountability and further updates would be brought back to Cabinet.
• The Cabinet Member took the opportunity to acknowledge the professionalism and the unwavering dedication of Officers in handling this extraordinary situation.
• It was not only the Senior Leadership Team and the Heads of Service present this evening, but the collective effort across the entire organisation that was driving the Council to resolve this matter, their commitment ensured that the Council got the resolution right.
•  He was grateful for their hard work and diligence.

RESOLVED that:

• That Cabinet note the tasks that had been further progressed in order to correct this situation.
• The overarching approach to the review of historic MDH possession proceedings (evictions) where rent overpayments were made as set out in section 2 of this report as recommended by the Homes Policy Development Group be approved.

(Proposed by Cllr J Buczkowski and Seconded by Cllr J Lock)

Reason for Decision:

The activity of MDH was funded through the HRA. The HRA was ring fenced and subject to specific financial controls. Significant financial modelling had been undertaken in order to reach some of the key decisions being put forward in the Cabinet report in December 2024.

Note: *Report previously circulated.

To receive a report from the Deputy Chief Executive (S151) and the Head of Housing and Health providing an update on the corrective measures completed and next steps in order to rectify an identified historic rent setting error.

The Group had before it a report * from the Deputy Chief Executive (S151) and the Head of Housing and Health updating it on the corrective measures completed and next steps in order to rectify an identified historic rent setting error.

The following was highlighted in the report and discussion took place regarding:

·       The PDG were asked to note the number of actions which had already been commenced to correct this issue and which were ongoing. There had been substantial progress and dedicated resource had been provided to correct this issue.

·       Current and ongoing rent had now been corrected and updated bills sent out to tenants. The current rent formula had been reviewed externally and assurance provided it is now wholly correct.

·       There were up to 70 historic evictions for rent arrears (all or in part) which may have involved tenant who overpaid rent. These would be investigated individually against the mitigation set out in the report.

·       It was explained that the Regulator would like to see a clearer Member decision on this process hence the report before the PDG with a recommendation to the Cabinet on the overarching approach.

·       The Revenue and Benefits team worked very closely with the Department of Work and Pensions (DWP) to obtain and deal with the relevant data.

·       It was confirmed that some other local authorities were in the same position. It may not be known at this stage whether or not the DWP assisted a tenant with their rent via their benefits. The Council needed to bear this in mind when assessing the refund position in each case. More informed and complex discussions needed to be had with DWP reflecting the importance of their role in this process.

·       A refund policy had been drafted and every effort would be made to refund those tenants owed money in as timely a manner as possible.

·       An update would be provided to tenants in April, as well as the media.

·       There had been limited contact from tenants on this matter, information provided through the various media channels had been good.

·       The complexities involved could not be under estimated in the determining of each case, for example, some tenants had gone into and out of the benefit system during the course of their tenancy. Issues in relation to Housing Benefit and Universal Credit would also come into play and need to be factored in.

·       There were FAQ’s on the website and officers were always there to offer advice and support to housing tenants.

·       Sometimes it took new auditors to do a deep dive in order to pick issues up and this is what had happened on this occasion.

·       Local DWP officers had been extremely helpful but it was understood that there are DWP system issues preventing the easy resolution of these matters. The Universal Credit system was initially created at pace and there were limitations to the type of data retained. The Council would still push forward to the best of its ability so that nobody was  ...  view the full minutes text for item 73