This meeting of the Royal Borough of Greenwich’s Cabinet will consider a range of topics including the acquisition of five NHS-owned care homes, a proposal to reduce the amount of council tax support provided to residents of working age, the council’s revenue position, and a plan to lease privately owned properties for use as temporary accommodation.

Acquisition of NHS-Owned Care Homes

The report pack includes a proposal for the council to purchase five properties currently owned by NHS Property Services and used to provide care for adults with learning disabilities and complex needs.

The properties are 1 Samuel Close, 2 Samuel Close, 3 Samuel Close, all in Woolwich, 1A Erindale Terrace in Plumstead, and Arnold House on Shooter Hill Road. They have a combined capacity of 42 residents.

The report pack states that the NHS wishes to dispose of these properties and that the loss of this housing would have a significant negative impact on residents. The report pack explains that the properties are strategically important:

“These properties are strategically important to Health and Adults Services as they represent a considerable proportion of local provision for people with learning disabilities and are more accessible than most other premises that are available to them.”

The report pack explains that the properties are likely to continue to be needed and that there is likely to be an increase in demand in the future:

“There is projected growth in the number of learning disabled adults in the borough including those transitioning from children’s services.”

It is proposed that the council should purchase the properties outright in order to guarantee their use for the provision of care services in perpetuity, and to give the residents security and certainty that they will not be forced to move. The report pack says the council intends to explore options to deregister the homes in the future, meaning they would no longer be classed as care homes and instead become supported living accommodation.

Local Council Tax Support Scheme

The report pack contains a proposal to reduce the amount of support provided to working age residents through the Local Council Tax Support scheme.

The report pack explains that the scheme is expensive to run and provides support to a large number of residents:

“Like most local authorities throughout the country, Royal Greenwich is facing unprecedented financial pressures due to the impact of increased demand and low levels of government funding. The cost of the working age scheme alone, in supporting around 14,700 claimants, is £17.7m.”

The report pack explains that the Royal Borough of Greenwich already provides more council tax support than many other councils in London:

“LCTS in Greenwich is within the top quarter of ratios between “working age support to council tax income” in London”

It is proposed that the council should reduce the maximum level of support provided through the scheme from 100% to 80%, meaning that all working age claimants would need to pay at least 20% of their council tax bill. The report pack explains that this change is needed to help balance the council’s budget:

“following many years of structural under funding and in order for the scheme for working age claimants to remain affordable, the maximum level of support for working age claimants of LCTS changes from 100% to 80%, so that all households make a minimum contribution of 20% towards the total council tax bill”

The report pack also proposes a number of other changes to the scheme, including increasing the ‘earnings taper’ from 15% to 25%.¹

The report pack proposes that the council should increase the ‘non-dependant deduction’² from £5 to £10 per week. The report pack also proposes ending the ‘second adult rebate’³ and using notifications of Universal Credit claims as applications for Local Council Tax Support. The report pack explains that this will make it easier for residents to get support:

“it would be easier for the resident, and more efficient for all parties, if the claim for LCTS can be made at the earliest opportunity.”

Alongside the changes to the LCTS scheme, the report pack says that the council intends to create a new ‘Greenwich Supports Discretionary Council Tax Hardship Fund’. The report pack states that this fund will support residents who struggle to pay their council tax bills as a result of these changes to the scheme.

2024/25 Budget Monitor (November 2024)

The report pack summarises the council’s financial position, stating that it has:

“forecast overspends of: • £17.9m on the general fund • £3.1m on the housing revenue account • £5.4m on Dedicated Schools Grant”

The report pack explains the reasons for these overspends, highlighting the increasing costs of adult social care services and children’s services:

“The projected outturn for Health and Adult Services (HAS) at November 2024 indicates a forecast position of £4.2m overspend in the current year, plus savings slippage of £2.5m”

“The Children’s Services Directorate is reporting an outturn overspend of £8.5m at the end of November 2024.”

The report pack explains that the council is also failing to meet some of its previously agreed savings targets. These include a £2m saving in the Health and Adults directorate:

“£2.0m is tied into contracts for Children’s Centres. Due to timing issues, this saving will not be achieved this financial [year] due however it is expected that the saving will be achieved in 2025/26”

The report pack provides further details of the council’s financial position, including a breakdown of the savings it expected to make and the reasons why it is not currently meeting those savings targets.

Ten Year Lease Agreements

The report pack contains a proposal to lease privately owned properties for use as temporary accommodation.

The report pack explains that the council currently houses homeless families in a number of ways, including hotels and nightly let accommodation. It explains that these options are very expensive:

“The Royal Borough of Greenwich (RBG) is facing an unprecedented demand for accommodation for homeless households. There are currently approximately 2,000 households in temporary accommodation, and new potential clients are regularly presenting themselves to the Council to be accepted as a homeless household.”

The report pack explains that the council can claim more housing benefit for its tenants if it holds a lease on a property for ten years or more:

“Officers have received external legal advice that when the Council has a lease of a property for ten years or more, the property can be let to a homeless client at a rent equivalent to our acquired TA portfolio, currently set at a level in line with the 2024 Local Housing Allowance.”

The report pack states that the council will consider leasing properties that are located outside of the borough:

“officers may offer ten-year leases on properties located outside of the borough, if the properties meet the standards and financial parameters of the leasing scheme”

The council intends to adopt a model ‘Heads of Terms’⁴ document that it will use to lease properties and delegate authority to the Director of Place and Growth to negotiate and agree individual leases.