Decision details

Report of the Finance Manager, Housing Services seeking approval for new charges to tenants for landlord controlled heating from 6 October 2014.

To agree that charges to tenants for landlord controlled heating are limited to an increase of 1.9% from 6 October 2014.

The financial outturn for 2013/14 shows that the deficit on the heating account has reduced from £1,405,800 to £523,100 during the financial year, partly due to a contribution of £391,000 from HRA balances. The end of year deficit is £59,900 lower than forecast in August 2013, mainly due to a relatively mild winter. However, it is still necessary for the decision maker to agree a level of charging that aims to eliminate the deficit by 31^st March 2016, whilst also recognising the increased pressures on residents and the ongoing effects of fuel poverty.

One alternative option is to increase charges in line with energy inflation, which could increase levels of fuel poverty in deprived areas of the City and compound some of the impacts of welfare reform.

Another alternative option is not to increase charges to tenants, which would result in an increased deficit on the landlord heating account and place a potential financial burden on other tenants in the City.

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