This policy details Stonewater s approach to the payment of compensation.

Transcription

1 Compensation Policy 1.0 Policy Summary This policy details Stonewater s approach to the payment of compensation. It applies to all tenants. Where differences in the contractual rights of these customers indicate that differential arrangements may be appropriate this is identified in the policy. 2.0 Policy Objectives The objective of the policy is to provide a robust framework that allows efficient, consistent, justifiable and transparent decision making in circumstances where compensation may be appropriate. However it also recognises that not all circumstances can be anticipated, and therefore there will be occasions when a degree of discretion is required. 3.0 Policy Details The need to make a compensation payment may arise for either discretionary or mandatory reasons. There are also circumstances and situations where compensation should not be paid. These are set out in the following sections of this policy. 3.1 Discretionary compensation All claims for compensation will be investigated. For this purpose it will only be possible to consider claims made within one month of the event arising. Claims can be made by letter, or by a nominated advocate.

2 Service Failure Loss of service(s) Where customers are charged for a support service or service to a communal area and we have failed to provide it, we will recompense customers with a refund of the proportionate amount for the period that they were without the service. No payment will be made directly to a leaseholder as there service charges are variable and these will be adjusted accordingly at the time of the next annual review. Where we have failed to respond to a request for a service, such as a repair request, unless we have done so in accordance with a policy or procedural requirement, or failed to complete a service request within a published response time, a one off payment of will be made. No payment will be made under this section if the total amount payable is less than 10.00, or the service failure is a result of a problem beyond the association s control, such as awaiting parts on order, power cuts, works being undertaken by utility companies etc Missed appointments The Association will compensate customers if we fail to attend an appointment within a specified timescale. Where a member of staff or contractor misses an appointment without giving prior warning compensation will be paid. A missed appointment is where we attend more than one hour later than the specified time, or where we fail to attend at all. No payment will be made where the reason is beyond our control or if the customer leaves the property less than 1 hour after the agreed appointment time. The amount paid is per missed appointment which is reviewed annually. Compensation may be limited if the customer has unreasonably prevented resolution of the service failure Loss of heating Where we have failed to repair heating within our stated response time we will pay an additional per day. Compensation may be limited if the customer has unreasonably prevented resolution of the service failure. Where we supply temporary heaters we will compensate for the cost of running these at a rate of 5.00 / day, from and including the second day that they are supplied. This amount applies regardless of the number of heaters provided.

3 3.1.4 Loss of hot water Where we have failed to repair hot water systems within our stated response time, we will pay an additional 5.00 / day. Compensation may be limited if the customer has unreasonably prevented resolution of the service failure Loss of use of rooms Where a customer has lost the use of a room due to it being unusable* and we have exceeded stated response times, we will offer a goodwill payment as a proportion of the weekly / monthly rent due for the period during which the loss is experienced. *We define unusable as a room we consider poses an imminent health and safety risk to the occupant. The amount of compensation payable will be determined in accordance with the table below. Unusable Room % Deduction Notes from Net Rent Kitchen 30% Bathroom 30% Except where there are suitable alternative bathing and toilet facilities, in which case no compensation will be payable Living room 20% Bedroom 20% Except where there is a suitable spare bedroom, in which case no compensation will be payable Should the property be totally uninhabitable* then we will endeavour to find alternative accommodation for the customer. In these circumstances where a household has been decanted, a disturbance allowance is payable at the mandatory rate. *Uninhabitable is a property that we consider poses an imminent risk to the health and safety of the occupant. 3.2 Mandatory compensation Tenant improvements (Secure and Assured tenants only) The Housing Act 1985 (Sections 99A and 99B), grants secure tenants the right to carry out improvements subject to Landlord consent. We grant this right to Assured tenants in their tenancy agreement. Where an alteration made to a property has been approved by us and is confirmed as a qualifying improvement, compensation will be offered to the

4 tenant(s) who have undertaken the improvement work when they leave the property. Compensation will only by payable should the following criteria be satisfied: The improvement is a qualifying improvement as specified in Statutory Instrument 1994 No The improvement has not fully depreciated at the point of compensation being requested. The tenant claiming compensation is a qualifying person as defined in Section 99B of the Housing Act The tenancy has not come to an end for any of the reasons contained in paragraph 3.2 of Statutory Instrument 1994 No Compensation has been requested not less than 28 days before and not more than 14 days after the tenancy comes to an end The amount of compensation payable will be determined using the statutory formula C X (1-( Y /N)) Where: C = The cost of the improvement N = The notional life of the improvement Y = The number of complete years, or part thereof, starting on the date the improvement was made, and ending on the date that compensation was claimed. The amount of compensation payable will be in accordance with the statutory provisions in that, for it to become payable, it must be a minimum of 50 and a maximum of No payments will be made unless they fall within these parameters. We may adjust the amount of compensation payable either upwards or downwards to take into account the quality of the improvement and the estimated remaining life at the date of compensation being requested. The Group will not compensate to a value which is greater that that which it would have spent on the improvement. For example, if a tenant has spent 2000 on an improvement for which we would have paid 1000 at the time it was made, then the maximum compensation payable will generally be No compensation will be payable where the quality of an improvement falls below our standards, or necessitates remedial action. Where remedial action is required, the cost will be charged back to the tenant Right to repair (tenants only) Stonewater will pay compensation to tenants should we fail to carry out emergency or urgent repairs within an appropriate timescale.

5 The right to compensation will arise if all of the following criteria are met: The tenant has reported an emergency (24 hours) or urgent (5 working days) repair, and Stonewater has advised the tenant of a target completion date The repair is a qualifying repair (i.e. likely to affect the health or safety of the tenant, the public or the property) We have failed to meet this target, and the tenant has reported the repair for a second time We have issued a further target completion date, and have failed to meet this second target. Compensation will not be payable if the tenant has failed to provide access as agreed. The amount of compensation payable will be: 10 one-off payment plus 2 per day for each day the repair remains outstanding after the second target date, up to a maximum of Home loss payments (all tenants and leaseholders) We will make Home Loss payments upon the permanent loss of a home due to demolition or redevelopment and the tenant is unable to return. Compensation will be paid in accordance with the provisions of the Land Compensation Act (1973, as amended). The amount of the payment will be as determined by the Home Loss Payments (Prescribed Amounts) (England) Regulations. Disturbance allowances are payable in order to cover the actual costs and reasonable expenses when a tenant is required to move either on a permanent or temporary basis. Unlike home loss payments there is no set amount. As a minimum, a disturbance allowance will be paid for: 1. Removal costs 2. Disconnection and reconnection of utility supplies 3. Disconnection and reconnection of household appliances 4. Redirection of mail 5. Refitting of carpets, curtains, blinds etc. 6. Removal and refitting of personal aids such as stair lifts We will also consider paying for the following discretionary costs: 1. Packing but only in in exceptional circumstances 2. Replacement of carpets and curtains where the old ones are not suitable for the new property. 3. Provision of items that cannot be removed (e.g. fitted wardrobes) 4. Provision of new white goods where the old ones will not fit into the new property

6 5. Redecoration of the new property 6. Re-installation of TV aerials and satellite dishes 7. Temporary storage of goods if the new property is smaller than the old one 8. Provision of a cooker if the fuel supply is different in the new property 9. Reimbursement of additional public transport costs if the home to work/school distance is greater for a maximum period of two months In considering whether to grant any discretionary disturbance allowance payments, regard will be had to the individual circumstances of the tenant and must be authorised by the relevant Manager Off-setting compensation against debt We will offset compensation against debt in-accordance with the following table: Compensation due in respect of: Tenant improvements Service failure Goodwill payments Loss of rooms Loss of facilities Damage to belongings by contractor Statutory Home loss or Disturbance payment Discretionary disturbance payment Missed Appointments Right to repair off-setting No No If a customer has any outstanding rent arrears (or any other debt with Stonewater) we may deduct these from the home loss payment or the discretionary payment (but not the disturbance allowance, as this is designed to cover actual costs which the customer will incur). Any deduction from the home loss payment or the discretionary payment must be approved by the relevant senior manager who will consider whether or not such a deduction might impede the customer from moving. 3.3 Situations where compensation will not be paid. Stonewater will assess compensation claims for damage to personal possessions resulting from a service failure by Stonewater. Customers must advise us immediately of their intention to make such a claim and preserve the evidence of the loss until we can inspect it. Any compensation payments will be based on the current value of possessions rather than their replacement value.

7 All claims for personal injury will be referred to our insurers. Compensation will not be paid for personal injury claims unless we are advised by our insurers that we are liable. Under the terms of tenancy, customers must allow access to their home for repairs to be carried out which may result in them having to take time off work. Therefore we will not compensate for loss of earnings. 3.4 Goodwill payments Compensation in these cases will be a nominal sum, up to a maximum of 50.00, offered as a stand alone payment, or in addition to another payment made in accordance with this policy. Goodwill payments are made to acknowledge that a service failure has occurred that is not covered elsewhere in this policy. Any payments in excess of this amount must be authorised by the appropriate manager. 3.5 Payment of compensation Compensation will normally be paid by BACS transfer, or in the form of decoration vouchers. If a customer has any outstanding debt with Stonewater, then the compensation will be used to offset this 4.0 Key Outcomes That the compensation payments made are within the parameters of this policy and the total amount awarded remains within the annual budget available. 5.0 Equality and Diversity Stonewater has an Equality and Diversity Policy. The impact of the Compensation Policy will be reviewed annually to ensure that it is equally accessible to all residents