Elderly tenants in a social housing block are facing ‘unaffordable’ costs not covered by housing benefits.
Stonewater housing association sent letters to residents living in Pembroke House last spring, demanding a rise in rent. The social housing provider said this increase in cost is largely down to a rise in energy costs.
79-year-old tenant James Munro lives alone. He suffers with diabetes and relies on a breathing machine at night. James told GB News that the hikes are ‘"totally unaffordable".
He said: ‘’I just didn't believe it. I assumed it was a mistake and felt sick. It was a hammer blow. I just didn't know what to do.’’
James Munro and Jenny Fiddler were among the residents to receive letters about the hike in costs
GB NEWS
Like some other tenants living in the old infirmary, James has started a tribunal on the pay increase.
Pembroke House tenants said that they face a 63 per cent rent rise of £166 to £271.20 a week. This adds up to an extra £5,260 per year. Rental increases make up 11 per cent which can be covered by housing benefits. However, communal charges such as electricity are not.
Dave Lockerman, Director of Housing Operations at Stonewater said: “We understand customers’ concerns about the increases in rent and service charges last year and have a wide range of support in place for anyone struggling. As a social landlord, we are not legally allowed to make a penny of profit from service charges.’’
“We’ve been working with customers across all our schemes to reduce energy use, which makes up the bulk of service charges. We have already (in June 2023) adjusted and reduced energy charges for customers at Pembroke House.’’
If James loses his tribunal, he will be faced with extra charges. He said Stonewater has reduced the repayment through energy negotiations, however, it still leaves him living in "fear".
‘’Instead of paying say £90 a week roughly, I'm going to be paying £40 a week. That's the increase. That's big money, which I still can't afford. Sadly, I'm living on benefits, and where can you find the money? Not eating.’’
Long-term resident and 78-year-old Jenny Fiddler moved out of Pembroke House as soon as she heard about the cost increases. Jenny told GB News that she has been housed in "cramped" council accommodation, far away from her previous home and friends.
She said: ‘’I live on my own. I'm a widow and I just couldn't afford it. I was so worried and frightened, so I gave my notice in. I just cried. What was I going to do? Where was I going to go? It was just devastating. I just threw myself at the council's feet.’’
Leader of the Wiltshire Council Richard Clewer told GB News that he was "furious" about the treatment of Pembroke residents, however, said they have ‘’limited abilities to act, as social landlords are not controlled by the council".
Mr Clewer said: ‘’I think Stonewater is not behaving like a social landlord. They're a charitable organisation. They exist to provide a safety net to have a social purpose. Instead, many housing associations are increasingly behaving like developers. They're not focusing on the people we're there to look after.’’
Stonewater said that they ‘’do truly empathise with the residents.".
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Jenny Fiddler, 78, moved out of Pembroke House as soon as she heard about the cost increases
GB NEWS
Dave Lockerman, Director of Housing Operations at Stonewater, said: “We understand customers’ concerns about the increases in rent and service charges last year and have a wide range of support in place for anyone struggling. As a social landlord, Stonewater follows Government guidelines when we make changes to rent and we’re not legally allowed to make a penny of profit from service charges.
"The charges simply recover the actual cost to us of providing services, like communal cleaning, garden maintenance and energy supply. All of these costs have risen significantly – particularly the hike in fuel prices, which has impacted everyone, no matter where or how they live.
“We’ve been working with customers across all our schemes to reduce energy use, which makes up the bulk of service charges. We have already (in June 2023) adjusted and reduced energy charges for customers at Pembroke House, passing on the savings we were able to make through renegotiating our energy contracts.
“We’ve also secured good rates for our incoming contracts, effective from June 2024, which reflect a further 27.5 per cent and 30.6 per cent reduction in electricity and gas prices respectively. Our customers will benefit from these savings as soon as April 1, 2024, as part of our annual rent and service charge review.
“We continue to offer a wide range of individual support, including help accessing any benefits customers may be entitled to, charitable grants (including from our own independent charity arm, Longleigh), personalised wellbeing reviews, specialist debt management advice and flexible payment plans. We have repeatedly offered assurance that no one should be worried about losing their home because of energy debt, as long as they engage with us to agree a way forward.
“We have considered calls for us to subsidise charges in retirement schemes but concluded it wouldn’t be right or fair for us to favour one group of customers over another. We understand retired customers may have limited means and are pleased that pensions have been linked to inflation, alongside receiving targeted government support.
“However, as a social housing provider, all our customers are on lower incomes, many don’t qualify for benefits, and struggle with continuing cost-of-living challenges. We’ve seen many examples through our work supporting customers where working families have been facing difficult choices such as between heating and eating.
“We do truly empathise with the residents in your report and, ultimately, if anyone at Pembroke House feels their situation is genuinely unsustainable, we’ll do all we can to help them find somewhere that better matches their needs.”
Regarding the rent tribunal in Pembroke House, a spokesperson said: “The recent tribunal findings are not applicable to the whole scheme and relate to rent (not service charges) for one particular flat at Pembroke House, with specific aspects and a complex history.
"While we believe the individual rent set (at just over £40p/w) is exceptionally low for the area, we accepted the findings and chose not to appeal as the costs would not represent best use of our limited income.”
