Agenda item

(Housing Portfolio Holder) To consider the attached report (C-018-2009/10).

(1)        That the heating charge in respect of 216 one-bedroom properties at Ninefields, Waltham Abbey be reduced from £22.19 per week for 2010/11 to the amount charged in 2009/10 of £16.69 per week until the installation of new individual boilers; and

(2)        That, in order to fund the cost of the reduction in 2010/11,  a Housing Revenue Account supplementary estimate in the sum of £57,000 be recommended to the Council for approval.

The Housing Portfolio Holder presented a report concerning the reduction of heating charges for Council tenants on the Ninefields estate in Waltham Abbey.

The Portfolio Holder reported that the heating systems in many of the Council-owned flats on the Ninefields Estate still dated from the 1960’s and had now become costly to run.  As a result, in 2010/11 the Council had to make a £22.19 per week heating charge to tenants and leaseholders just to cover costs, a charge that was clearly disproportionate for a one-bedroom flat.

The Portfolio Holder advised that the Council was undertaking a programme of works to replace the boilers in the 216 affected properties but this work would not be fully completed until 2011/12. Until each occupier had their new system installed, they would have to continue to pay these high charges. Following representations from the tenants, and a consultation exercise undertaken on new boiler installations, it was considered reasonable to reduce the charge to £16.69 a week, the amount paid by tenants and leaseholders in 2009/10, as a goodwill gesture until they each had their own heating system installed.  The cost of making this reduction was estimated at £57,000.

The Portfolio Holder stated that efforts had been made to fund this measure from potential shortfalls in existing budgets but at this relatively early point in the financial year, this had not been possible. Therefore, the Cabinet was being requested to agree that a request for a supplementary estimate of £57,000 be made to Council.

The Director of Housing added that some of the properties in Ninefields already had meters installed within their properties, but that it was the responsibility of the tenant to arrange their own meters with their gas supplier when their heating system was fitted.   

Decision:

(1)        That the heating charge in respect of 216 one-bedroom properties at Ninefields, Waltham Abbey be reduced from £22.19 per week for 2010/11 to the amount charged in 2009/10 of £16.69 per week until the installation of new individual boilers; and

(2)        That, in order to fund the cost of the reduction in 2010/11, a Housing Revenue Account supplementary estimate in the sum of £57,000 be recommended to the Council for approval.

Reasons for Decision:

The current heating charge of £22.19 per week, per property, was disproportionate and excessive in comparison to heating charges for similar sized, and even larger properties.  The Council would shortly be starting a programme of works to replace the boilers in all of the 216 properties affected, but it would not be possible to complete this work until 2011/12.  In order to compensate tenants and leaseholders for these high costs since April 2010, the charge would be reduced to the amount charged in 2009/10 of £16.69 per week until such time as each resident had a new heating system installed.   

Other Options Considered and Rejected:

To not reduce the charges, however it would be inappropriate to charge £22.19 per week for a one bedroom property.

To reduce the charges by an alternative amount, however it was considered more appropriate to reduce the charge to the same level as last year, rather than setting an arbitrary reduction.