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Budget & Performance Task Group Housing

Budget & Performance Task Group Housing. Ben Denton Strategic Director, Housing, Regeneration & Property. Executive Summary. Housing Options Service (projected out-turn 2013/14: £4.75m)

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Budget & Performance Task Group Housing

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  1. Budget & Performance Task GroupHousing Ben Denton Strategic Director, Housing, Regeneration & Property

  2. Executive Summary • Housing Options Service (projected out-turn 2013/14: £4.75m) Meet the Council's statutory obligations to provide homelessness assessment and advice service and allocate social housing according to the Allocation's Scheme • Temporary Accommodation (c. £34m gross; £3.7m net in 2013/14) Meet the Council's statutory obligation to provide suitable temporary housing where permanent housing is not available and the Council has a housing duty • Supporting People (£13m) Formula grant allocation for housing related support services • Homelessness Prevention (£8.5m) Homeless Prevention grant to fund rough sleeper and homeless prevention services • Housing Benefits (Gross £265m;net £1.3m) Payments to claimants of Housing Benefit, funded by central government grant • Other Net Expenditure (£0.9m) This includes salary costs of c. £1.3m

  3. Housing Budget • Housing was allocated an approved budget of £28.5m in 2013/14 • The projected outturn for 2013/14 is a total spend of £32.2m The £3.7m overspend is due to increased homelessness (acceptances are forecast to be c. 800 for the year against 378 in 2009/10) as a result of reduced availability of private rented sector properties to households on benefits led to increased use of hotel accommodation at the start of the year. This has now ended but pressures on sourcing sufficient volumes of TA remain. • The draft budget envelope for 2014/15 is £26.8m a net saving of £1.7m over 2013/14 • The budget envelope for 2014/15 includes savings proposals amounting to £2.7m and budget pressures of £1.02m linked to continuing high levels of homeless applications

  4. 2014/15 Key Issues/Projects • Management of high numbers of households presenting as homeless compared to 2010 (numbers are anticipated to reduce from autumn 2014) and requirement to meet statutory obligations, in particular that all Temporary Accommodation should be ‘suitable’ • Impact of overall benefit cap affecting 850+ households in Westminster on TA income and homeless numbers • Management of a complex rough sleeping and housing related support portfolio where service provision impacts across the Council

  5. 2014/15 Savings Proposals Temporary Accommodation Strategy Delivery • Total weekly unit cost deficit across all TA properties has been reduced to £0.018m (from over £0.1m p.a. at start of year) through reducing property costs and increasing numbers of properties outside Westminster and London • 80% of current TA stock is in surplus or makes a small deficit (generally on B&B units) • As remaining properties that are in deficit are replaced by new TA schemes (including direct purchases, use of regeneration area properties, longer term leasing deals) this will return the TA budget to an additional surplus of £1m Service Area Savings • Decommissioning supported housing services where the service is being provided from premises no longer fit for purpose and negotiating savings against contracts where services can be provided more efficiently: £0.832m • Review of the Housing Benefits bad debt provision: £0.5m • Reduce Housing Options Service costs as homeless applications reduce from summer 2014: £0.27m

  6. 2014/15 Budget Pressures & Risks Pressures • Increased full year costs of Housing Options Service related to increased numbers: £0.884m; (as above numbers are anticipated to reduce in the autumn and this will reduce this pressure by £0.270m) • Contract inflation (£0.118m) and salary (£0.02m) costs Risks • Loss of income due to impact of Benefit Cap on households living in TA; (£2.5m); mitigating actions are sourcing more affordable TA through the TA strategy, use of DHP and work with JCP to support households into employment • Further increases in homelessness due to the Benefit Cap (£2m); mitigating actions are increasing homeless prevention through use of DHP and identifying more affordable private sector accommodation

  7. 2014/15 Housing Budget Composition

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