The Leadership Team of Kensington and Chelsea Council met on Wednesday, 23 September 2026. The meeting covered the council's financial position, the delivery plan for the Crisis and Resilience Fund, and housing management performance.

Quarter 1 Financial Monitoring Report 2026/27

The council is forecasting a £4.593 million overspend for the financial year 2026/27, representing 2% of the net budget. Pressures have been identified in Children's Services (£1.656 million) and Housing and Social Investment (£1.369 million). The cyber-attack in November 2025 has contributed to delays in savings delivery and income generation. Parking services are forecasting a £0.760 million overspend, with councillors questioning if this underperformance is structural. Factors cited include the closure of Albert Bridge and the impact of the cyber-attack on income monitoring systems. The council's reserves are forecast to be drawn upon by £19.609 million in the current financial year. The Leadership Team agreed to request that services identify opportunities to reduce expenditure and increase income to manage the projected overspend and deliver a balanced budget by the end of the financial year. They also noted and approved new requests for corporate contingency funding and approved the rephasing of capital budgets due to programme slippage.

Crisis and Resilience Fund Delivery Plan

The Leadership Team approved the delivery plan for the Crisis and Resilience Fund (CRF), a £6.7 million ringfenced government grant to be distributed over three years. This fund replaces the Household Support Fund and aims to provide immediate support to residents in financial crisis while also building long-term financial resilience. The CRF will be delivered through four strands: Crisis Payments, Housing Payments, Resilience Services, and Community Coordination. The plan acknowledges delays due to the cyber-attack but outlines preparatory work. The council will receive £2.3 million in the first two years and £2.1 million in the third year. The Leadership Team delegated authority to the Director of Grenfell Legacy and Corporate Strategy to make necessary amendments to policies and to the Executive Director of Organisational Strategy to manage fund movement between strands based on demand.

Housing Management Performance Reporting Q1

The Leadership Team reviewed the Housing Management department's performance for the first quarter of 2026/27. Overall performance was generally positive, with high compliance rates for electrical safety (99.76%), gas safety (99.85%), and fire risk assessments (99.83%). The repairs service performed strongly with resident satisfaction at 82.65%. Estate services maintained high standards, with 99.58% of inspections rated 'excellent' or 'good', and two estates receiving Green Flag Awards. Concerns were raised regarding delays in gas and electrical safety checks due to access issues and complex cases, as well as the time taken to investigate tenancy fraud. Satisfaction with anti-social behaviour case handling was noted as low. Complaints performance was below target, with significant backlogs and delays in Stage 1 responses, exacerbated by the cyber-attack. Officers outlined plans to address these issues. Rent arrears stood at £5,371,408 at the end of Q1, a 4.43% reduction since reporting resumed, though this figure is not yet fully reflective due to delays in processing Housing Benefit claims. The Housing Investigations Team recovered 5 properties in Q1, with 57 ongoing investigations. Void properties stood at 174 at the end of Q1. Tenant satisfaction measures showed steady improvement between 2022/23 and 2025/26, although satisfaction with complaints handling remained low. The Leadership Team acknowledged the overall performance metrics and made no further recommendations to Full Council.

Fairer Action Plan and Equalities Annual Report 2025-2026

The Leadership Team approved the Fairer Action Plan and Equalities Annual Report 2025-2026. The report details progress made in the first year of the Fairer Action Plan 2025-2029, including the launch of the plan, improvements to Equality Impact Assessments (EqIAs), and the establishment of the Disabled Residents Forum. The report highlighted wider equalities work across services. Challenges remain regarding inequalities in health, employment, and access to opportunity. The council is committed to addressing these through ongoing work on the Grenfell Tower Inquiry response, organisational culture, and workforce representation. The report noted that 7.5 actions from the Fairer Action Plan have been completed, with significant progress on the remaining actions.

Annual Complaints Report 2025/26

The Leadership Team reviewed the Annual Complaints Report for 2025/26 and endorsed the priorities set for 2025/2026 in the report. The report detailed a 40% increase in complaint submissions, largely attributed to the cyber-attack and changes in how complaints were logged. Accepted complaints rose by 22%, with Housing and Social Investment accounting for the largest volume. Stage 1 complaint timeliness fell significantly, with an overall performance of 55% against a target of 90%. Stage 2 performance was stronger at 74%, but still below target. The report indicated a continued reduction in upheld complaints. Housing Management had the highest proportion of upheld complaints (81%), particularly concerning repairs, damp, and heating. Multi-service complaints also showed a high rate of upheld or partially upheld outcomes (76%). Redress payments decreased compared to the previous year. The report also noted the positive receipt of 318 compliments across the council. Priorities for 2026/27 include completing the end-to-end complaints review, improving the compensation policy, and enhancing resident communication. The Leadership Team agreed to report the Local Government and Social Care Ombudsman findings to Full Council.