Issue - meetings

This report looks at success and value of the former arrears incentive to accepted homeless households and proposes a continuation and expansion of the scheme.

Advice of the Advisory Panel

That the Executive Member for Housing be advised to approve Option B, to continue the former arrears scheme and to extend to re-settlement customers. 

Decision of the Executive Member for Housing

RESOLVED:             That the advice of the Advisory Panel as set out above be accepted and endorsed.

REASON:                  To encourage and assist customers to repay any former arrears in order to meet CLG temporary accommodation targets and to prevent blockages in resettlement accommodation.

Members considered a report which looked at success and value of the former arrears incentive to accepted homeless households and proposed a continuation and expansion of the scheme.

The pilot former incentive scheme was agreed at Housing EMAP on 6^th March 2006 and was introduced on 1/4/06. During 2006/7 16 people signed up to the former arrears incentive scheme, of whom 8 made regular payments of 13+ weeks entitling them to an incentive payment. This amounted to £3666.86 arrears recovered and £1080.25 incentive given. It was acknowledged that this was a slow start but that there was significant value in the continuation of the scheme.

Three options were presented to Members:

Option A. To continue with the incentive scheme for accepted homeless only until offer of permanent accommodation.

Option B. To continue with the incentive scheme for accepted homeless and to extend the incentive scheme to those who ‘sign up‘ and are living in hostels / supported housing projects that are actively engaging in the re-settlement programme  until offer of permanent accommodation.

Option C. To cancel the scheme at the end of the pilot.

The pilot scheme resulted in £3666.86 arrears being recovered at a ‘cost’ of £1080.25 in write offs. If the take up of this scheme increased to 100 customers, each paying £5pw then anticipated recovery would be £26,000 pa and ‘write off costs’ £13,000. If this prevented only 4 customers either requiring or living in temporary accommodation (B&B) for 1 year this could generate a saving of £58,400 per annum.

Members requested that a progress report be brought back in 12 months time to provide feedback on the uptake of the scheme.

Advice of the Advisory Panel

That the Executive Member for Housing be advised to approve Option B, to continue the former arrears scheme and to extend to re-settlement customers. 

Decision of the Executive Member for Housing

RESOLVED:             That the advice of the Advisory Panel as set out above be accepted and endorsed.

REASON:                  To encourage and assist customers to repay any former arrears in order to meet CLG temporary accommodation targets and to prevent blockages in resettlement accommodation.