Despite 40% of Kirklees tenants being in arrears on their rent, Kirklees Council has defended its decision to up the costs.
Each year, the council reviews its rent charges, and today (December 12), Cabinet decided to approve a 7.7% hike, in-line with government guidelines. For individual properties, the average increase will be £5.36 per week for a one-bedroom, £6.36 per week for a two-bedroom, £7.16 per week for a three-bedroom, and £7.57 per week for a four-bedroom.
However, the report to Cabinet reveals that 40% of tenants are already in arrears on their current rent payments, begging the question of whether the fee increase will be enforceable or simply add to the number of tenants unable to stump up the costs.
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The report says: “There are 40% of tenants that are currently reported as having some arrears of which 62% are in receipt of Universal Credit and so it cannot be guaranteed that payments will be made because the benefit goes direct to the tenant, although claims to have the benefits paid direct to us can be made if the tenant is reported to have more than eight weeks arrears.
“There are 41% of tenants who pay by direct debit and 59% who pay by alternative methods of payment and so tenants are encouraged to sign up for direct debit arrangements.”
The council says the move is necessary to sustain the level of investment required to maintain council housing standards and benefit tenants. In addition, with the local authority already exploring all avenues for saving cash, new ways of working are projected to make a saving of just under £3m.
Prior to today’s meeting, Cllr Moses Crook, Cabinet Member for Housing and Highways, said: “We are aware of the challenges some tenants face in keeping up with rent, alongside other cost of living pressures. Our difficult decision to increase rent is to generate the income necessary to invest in the quality and standard of council housing to benefit tenants. Our Income Management Team is here to help those struggling, focusing on supporting tenants with guidance and solutions, beyond just addressing debt.
“With total rent arrears of £3.189 million, our approach is empathetic yet responsible. We aim to ensure every tenant has a safe place to live and manageable finances.
“Eviction is very much a last resort, considered only when all efforts to engage and support a tenant have been exhausted. We are committed to working with our tenants to overcome financial burdens. I encourage any tenants with concerns to get in touch with our Income Management Team or their Housing Officer.”
The increase will be implemented from April 1, 2024. The council says that tenants will receive their statutory increase notice with information and contact details of the Money Advice Team four weeks before any increase.
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