The Cabinet Member Signing meeting on Monday 23 February 2026 confirmed a new charging policy for council-owned supported accommodation and updated fees for General Fund properties. The decision aims to formalise charging methodologies and ensure consistency across all supported housing schemes.

Licence Fees and Service Charges for Council-Owned Supported Accommodation

A decision was made to formalise the charging policy for licence fees (rents) and service charges for all council-owned supported accommodation. This includes aligning licence fees for all short-term supported housing at Formula Rent + 10% and fully recharging the costs of services provided. For General Fund schemes, charges were updated for the 2026/27 financial year, including the introduction of personal charges which had not previously been applied to residents in these properties. These changes were implemented from Monday 6 April 2026.

The rationale behind this decision was to provide clarity for residents on how charges are set and to establish a common charging methodology across all schemes. Previously, General Fund schemes had not had their charges updated since they opened, leading to a disparity with Housing Revenue Account (HRA) schemes, where charges are reviewed annually.

The report considered alternative options, including not formalising the licence fees and service charges, which was rejected due to a lack of transparency and the continuation of General Fund rents being outside the annual rent increase process. Not updating the General Fund licence fees and service charges was also rejected as it would maintain inconsistencies in fees for similar services.

The new policy aligns with the Rent Standard¹, which limits licence fees at the start of a tenancy to formula rent + 10% and caps annual increases for current residents at the Consumer Price Index (CPI) + 1%. For new residents in General Fund schemes, licence fees will increase from between £42.35 and £45.99 to between £64.41 and £67.64. Housing Benefit (HB) eligible service charges will also see increases. Crucially, personal charges, which cover services not eligible for Housing Benefit, are being introduced for General Fund schemes. These will be £8.98 per week for Scheme B and £13.66 per week for Scheme O.

The report noted that while the majority of these charges are eligible for Housing Benefit, the introduction of personal charges will have a direct financial impact on residents. An Equalities Impact Assessment² was conducted, highlighting that residents in supported accommodation are more likely to be aged 35-49, male, have disabilities (particularly mental health conditions), and come from lower socioeconomic backgrounds. While the council will provide targeted support to help residents access financial assistance for personal charges, the short-term impact is expected to be negative, with a potential long-term benefit in preparing residents for independent living. The updated General Fund charges are projected to generate an additional £190,000 in income for the council in 2026/27.

The decision supports the Corporate Delivery Plan 2024-2026 theme of Homes for the Future by reviewing and implementing new consumer standards.