FOUR HOUSING. Compensation Policy
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- Barrie Lindsey
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1 FOUR HOUSING Compensation Policy Registered Office: Three Rivers House Abbeywoods Business Park Pity Me Durham DH1 5TG March Introduction 1
2 1.1 Scope of the policy This policy sets out Four Housing s approach to compensation. It defines compensation as a payment or gift made when we agree that we have not delivered a service to an acceptable standard and practical solutions have failed to fully redress the situation. It includes situations where we have a legal responsibility to pay compensation such as in relation to the right of repair, right to compensation for improvements, home loss and disturbance payments. It does not cover events which are covered by the organisation s public liability or building insurance. The policy should be read in conjunction with the customer feedback policy and procedures. 1.2 Aims of the policy Four Housing aims to provide excellent services to all our customers. If problems occur, we will aim put things right. At times this may mean the payment of compensation. This policy aims to make sure that our approach to compensation is fair and consistent and supports our aim of excellent service delivery. We do not see compensation as a quick fix, and we will address the causes of actions and processes that continue to give rise to potential compensation. 1.3 Guiding principles Compensation should never be offered in place of providing a practical solution to a situation Compensation for loss or damage should be quantified and supported by evidence Compensation for non-financial loss, such as distress or inconvenience should be a proportionate reflection of the impact our actions (or inactions) have had Compensation for non-financial loss should only be considered where there has been a significant impact on the customer, not just for minor inconvenience or upset when an apology would be more appropriate The calculations used to arrive at compensation payments should be recorded to ensure consistency, fairness and accountability Compensation will not normally be paid in respect of an event that happened more than six months previously, unless there are exceptional circumstances Housing Ombudsman Case Studies For useful examples of the Ombudsman s expectations in relation to the payment of compensation see 2
3 1.3 Links to Corporate Objectives This policy links to: Corporate Objective 2 Customers driving service development and improvement. Corporate Objective 3 Being passionate, professional and proud of what we do 1.4 Length of Policy/Review Timetable. This policy will be reviewed in three years unless legal, regulatory or other issues prompt earlier review. 2.0 Statutory obligations There are some circumstances where we are obliged to pay compensation. Right to Repair The Right to Repair scheme covers specific repairs, known as qualifying repairs which cost less than 250 and should be done within a set time limit. These are the type of repairs which may affect our customer s health, safety or security. If we do not carry them out within the specified timescale (unless the customer failed to provide access) the customer may be entitled to compensation. This aspect of compensation is set out in our repairs handbook. Home Loss Home loss payments may be made to tenants or owner-occupiers who have lived in their property for a minimum of twelve months and are required to move home permanently as a result of redevelopment or demolition of their home. Disturbance Disturbance payments may be made to people who are required to move to another property temporarily or to people who have lived at a property less than twelve months and are required to move home permanently. This payment is for reasonable moving costs. Improvements If a tenancy is ending and the tenant completed improvements to the property after 1 April 1994 they may be entitled to compensation for those improvements. This does not apply to fixed-term tenancies. The tenant must have had written permission from us to carry out these improvements. 3.0 Payment for damage to the property/belongings It is our responsibility to insure the properties that we let and the tenant s responsibility to insure the contents of their home. We encourage tenants to have home contents insurance when they sign up to a tenancy with us. Where someone has incurred damage to property they own, and the damage is a direct result of Four Housing s actions and or failure to act to a reasonable level within reasonable timescales, we may consider the payment of compensation or ask the customer to claim on their insurance. 3
4 4.0 Compensation for Four Housing s Service Failure Four Housing may pay compensation where the standard of service we provide is considerably below the standard that could be reasonably expected. This would be paid at Four Housing s absolute discretion and will only be paid if the customer has been substantially inconvenienced or has incurred specific financial loss. It will normally be considered as part of the complaints process. If compensation is being considered the following factors should be taken into account: Substantial worry, distress or inconvenience has been caused by exceptional event(s) Specific financial losses have been incurred The customer has had to live in poor conditions for longer than is reasonable due to our failure to deal with repairs satisfactorily that are the landlords responsibility 4.1 In some exceptional circumstances Four Housing may make a goodwill gesture. This will be entirely at Four Housing s discretion and does not imply liability on Four Housing s part. 5.0 When will compensation not be given Where the mistake or failure has caused little or no problem to the people affected Where the customer should have been able to make a claim on their own insurance Where the incident was caused as a result of negligence by the customer or their failure to comply with the terms of their tenancy Where the customer cannot evidence (and it is not unreasonable for them to do so) that they have incurred specific costs as a direct result of the event Where damage was caused by a fault that was beyond our control and there was no negligence on our part Where the event is subject to an insurance claim or where there is impending legal action against Four Housing Where extreme weather and other similar events have impacted on our ability to meet our service standards Where the customer is claiming for loss of earnings Where work is carried out under contract between the client and a contractor as part of our care and repair service, unless there is evidence of negligence by Four Housing in our part in that process 6.0 Determining the level of compensation 6.1 Guidance will be provided to staff to help assess payments of compensation for service failure. Examples that will be covered include: Increased cost of utility bills due to use of electric heaters as a temporary solution beyond published repair timescales. Up to 3 per day will be the 4
5 guideline payment. Failure to keep appointments where we have not given reasonable notice of our inability to attend or other exceptional circumstances have prevented us from attending such as severe weather or sudden staff sickness absence. 10 will be the amount considered here. 6.2 The relevant Head of Service should be informed of any recommendations for the payment of compensation before it is discussed with the customer. All compensation awards will be discussed at the regular complaints meetings to ensure that the payment is the best way to resolve the situation and that decisions are fair and consistent. 6.3 If a tenant is in rent arrears and compensation is to be awarded, Four Housing reserves the right to use this payment towards the arrears in some cases Appeals We will deal with claims for compensation efficiently, sympathetically and as quickly as possible to reduce the potential for dispute between customers and us. However, where a customer disputes where compensation should be paid in particular circumstances, the amount of any payment, or any other aspect of how we administer this compensation policy, their appeal will be dealt with through the Customer comments, compliments and complaints policy. 8.0 Legal requirements In developing this policy relevant legislative requirements, best practice case studies and publications have been examined including the following: Housing Ombudsman Service - Compensation Good practice from Contactnet benchmarking group Data Protection Act 1998 Communities & Local Government A better deal for tenants Your Right to Repair 9.0 Data protection and confidentiality Four Housing will ensure that customer confidentiality is maintained at all times and that all personal information will be handled in accordance with the requirements of the Data Protection Act Equality and diversity Four Housing will treat all customers with fairness and respect. We value diversity and work to promote equality and tackle unlawful discrimination. We will provide support for all customers to ensure that they understand their rights and responsibilities. 5
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