The Cabinet considered a report of the Executive Director (Finance and Resources) setting out the justification for increasing heating charges during 2022/23 in line with actual costs being incurred.

Resolved:

That an increase to Heating Charges for Housing Tenants for 2022/23, in line with the proposals contained in the submitted report, with effect from 1^st January 2023, be approved.

Reasons for decision:

The residents of Sheltered Schemes and Hostels are currently paying below the actual cost for heating and hot water in their homes.  This adjustment means that residents will start to pay the true cost of these services into their homes and better prepare them for further increases in 2023/24 in line with the energy market.

Other options:

Not to increase heating charges, the implications of this are twofold.  Firstly, resident’s costs of heating and hot water in their homes will be subsidised by the funds of South Essex Homes and the HRA.  This is not a fair or appropriate use of HRA funds.  Secondly, the losses being incurred by South Essex Homes on delivering these services will continue to increase putting further pressure on the reserves position and viability of South Essex Homes to continue to deliver vital services to the tenants.

Note: This is an Executive Function

Eligible for call-in to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Gilbert