Rent for tenants in a tower blocks plagued with issues look set to increase. Salford council’s cabinet has been recommended to approve the 4.1 per cent increase for Pendleton Together, where social housing tenants have suffered freezing conditions since flammable cladding came off their blocks.
All nine apartment blocks finally had their flammable cladding removed by the end of 2020 in the wake of the Grenfell Tower fire in London. The wait goes on for the cladding to be replaced.
The housing association has offered financial help for heating bills, but back in February some said their energy costs were up to 10 times higher.
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On February 28, the Growth and Prosperity Scrutiny Panel called-in the decision, urging the mayor and his cabinet to have a re-think. The panel's reasons for its decision were stated as the increased service charges and rent not being proportionate to the service received based on the reduced services and facilities over the last five years.
The cabinet says it has brought in ‘positive enhancements’ to support the tenants:
- The Pendleton Hardship Fund is now open to all tenants in the PFI council owned stock, this was previously restricted to those not in receipt of Housing Benefit and Universal Credit
- Additional funding has been made available to fund a support post for a two-year term to provide one-to-one advice and assistance to residents to maximise their income
- The Hardship Fund eligibility criteria has been extended to provide assistance with the payment of fuel bills capped at a maximum of £226 per household
The cabinet report, responding to comments from the panel, said: “The steep rise in inflation has been a key consideration for the council. The cost of the PFI contract to the council is increased each year in February by RPIx this is 8.3 per cent for February 2022.
“This is creating additional pressures between the income being received and the substantial cost increase for the contract. The rental charge covers the housing management, repairs and investment cost.”
The Pendleton Hardship fund will make available £216k for 2022/23 as per the previous cabinet recommendation. In addition to this a proposal was presented to the City Mayor Paul Dennett to fund from the HRA a staff post for a two-year period to provide support to residents experiencing hardship at an additional approximate £80,000.
“The energy plan will focus on ensuring residents living in un-clad high-rise blocks continue to be supported with winter fuel payments which are in line with the energy cap increase,” the report continued. “Additional fuel payments will also still be considered where tenants feel they have been more adversely affected.
“Residents who could be eligible for the Warm Homes Discount scheme will be proactively contacted and supported to make applications to their energy company. If residents approach Pendleton Together because they are struggling to pay rent, this will be used as an opportunity to see if an additional energy payment would be beneficial.”
A 4.9 per cent increase in rent has also been proposed for residents at the Duchy Caravan site which has been managed by Salford council since April 2021.
The final decision is due to be made on May 24.
