Issue - meetings

Rent Arrears Incentives

Meeting: 03/03/2010 - Cabinet (Item 6)

6 Rent Payment Incentives pdf icon PDF 126 KB

Report of the Director of Housing Services

Decision:

1.      The following incentive payments are approved for 2010/11:

 

  1. a quarterly £250 prize draw for those paying by direct debit with two prizes per quarter;

 

  1. an end of year prize draw of £250 for those with a clear rent account at the end of March 2010 and 2011 with two prizes awarded;

 

  1. a quarterly prize draw of £250 for tenants in arrears who have paid the agreed amount regularly over the previous 13 weeks.  There would be two prizes per quarter.

 

2.      Delegation is given to the Director of Housing and the Portfolio Holder for Housing to investigate alternative incentives and refine them as appropriate.

Minutes:

Beverley Mennell addressed Cabinet.  As a council tenant, she offered her compliments to the Council and Administration for their hard work in resolving the issue of homelessness and generally improving the housing service.  She further thanked the team for their efforts in rent collection and supported the proposed scheme.

 

Councillor Mildren addressed Cabinet commenting that the proposed incentive was better than the previous one, with the odds for winning at 725 to 1 for people paying rent by direct debit. His concern was at people’s fear of direct debits coming out of bank accounts if there were insufficient funds.

 

Councillor Clarke addressed Cabinet.  He agreed the need for an incentive for rent payments.  He also had concerns over direct debits.  He commented that the Administration could be more inventive over how the £5,000 prize money was distributed and suggested that an offer be made to access the Council’s Credit Union with an introductory £10 donation.  This would benefit more people.  He asked the Portfolio Holder to investigate alternative incentives.

 

Councillor Beardsworth presented the report to Cabinet.  She pointed out that the scheme was a pilot that would be reviewed after 12 months and that, in this time, alternative incentives would be considered.  She pointed out the advantages of a direct debit payment system that would save officers’ time and help with the regular collection of rents.

 

RESOLVED

1.      That the following incentive payments be approved for 2010/11:

 

  1. a quarterly £250 prize draw for those paying by direct debit with two prizes per quarter;

 

  1. an end of year prize draw of £250 for those with a clear rent account at the end of March 2010 and 2011 with two prizes awarded;

 

  1. a quarterly prize draw of £250 for tenants in arrears who have paid the agreed amount regularly over the previous 13 weeks.  There would be two prizes per quarter.

 

2.      That authority be delegated to the Director of Housing and Portfolio Holder for Housing to investigate alternative schemes and refine incentives as appropriate.