Agenda item

Report of Senior Head of Community.

Cabinet lead member:  Councillor Alan Shuttleworth.

(1) Charges for Eastbourne sheltered housing residents increased by £7.96 per week from 1 June 2016.

(2) Delegated authority granted to senior head of community, in consultation with lead cabinet members for community and finance and the chief finance officer, to finalise Eastbourne Homes’ management fee ensuring an adjustment to the fee to reflect the increase in sheltered housing income.

73.1 Councillor Ungar addressed the cabinet noting that 85% of affected tenants were in receipt of housing benefit.  He noted that from 1 January, social services had just two days to make arrangements for a patient under their care after being informed they were ready for release from hospital, or they faced fines of £100 per day they remained.  He posited that the savings found from withdrawing support for those in sheltered accommodation could well be offset by the cost of fines.

73.2 Cabinet considered the report of the senior head of community.  East Sussex County Council (ESCC) had recently approved a budget that included cuts to adult social care budgets.  Savings included the removal of all ‘supporting people’ funding from sheltered housing as from 9 May 2016.  For Eastbourne residents this equated to approx. £137,000 per annum.  This funding met the costs of the lifeline alarm service and extra support provided by Eastbourne Homes Limited (EHL) on-site co-ordinators.

73.3 The council had 314 sheltered flats at 11 schemes in and these were managed by EHL.  Residents received support from a team of 8 on-site co-ordinators who managed the buildings, ensured residents were safe, promoted social activities and supported frail and vulnerable residents.  Current staffing and lifeline related costs were £334,497 per annum. 

73.4 When putting forward options to residents, EHL considered the need to minimise the impact on the housing revenue account (HRA), the cost rises to all residents; and the increase in non-housing benefit eligible charges to residents.  Three options were put to residents:

·         Option 1: Keep the service as now - total additional charge to residents of £9.49 per week including lifeline (cost to HRA £101,000).

·         Option 2: Reduce staffing by 1 member of staff – total additional cost to residents of £7.96 per week including lifeline (cost to HRA £84,500).  Achievable without impact on service level and ending agency staff.

·         Option 3: Reduce staffing by 2 members of staff – total additional cost to residents of £7 per week including Lifeline (cost to HRA £72,000). Impact on service level and one redundancy.

It was proposed that new residents paid the full charge which would reduce the impact on the HRA over time.

73.5 All of the options involved residents having to pay more for their service and a large proportion of the costs were not eligible for housing benefit. EHL had advised residents that benefit advice would be offered to ensure that residents were maximising their incomes.  EHL would also review each element of the sheltered service charge to ensure that costs were affordable.  The majority of residents would have a reduction in their heating and hot water charges and their service charge from 1 April 2016 which would help mitigate the increase in support charge.

73.6 Meetings had been held with residents and the on-site co-ordinators briefed.  137 residents attended the meetings and 223 responses were received to the consultation (71% response rate).  19% of residents chose option 1, 68% chose option 2 and 13% chose option 3.  EHLs board had considered the outcome of the consultation on 10 March 2016 and, having regard to the majority view of residents, recommended option 2.

73.7 Resolved (key decision): (1) That the charges for Eastbourne sheltered housing residents be increased by £7.96 per week from 1 June 2016.

(2) That delegated authority be granted to the senior head of community, in consultation with the lead cabinet members for community and finance and the chief finance officer, to finalise Eastbourne Homes’ management fee ensuring an adjustment to the fee to reflect the increase in sheltered housing income.