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Victoria Cottage Homes and George V Cottage Homes: Residents Contribution: Increase

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

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A decision made 8 April 2013:

Decision Reference:           MD-H-2013-0022 

Decision Summary Title :

DS – Increase in Cottage Homes Contributions in May 2013

 

Date of Decision Summary:

26th March 2013

Decision Summary Author:

 

Finance Director

Decision Summary:

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Type of Report:

Oral or Written?

Written

Person Giving

Oral Report:

N/A

Written Report

Title :

Increase in Cottage Homes Contributions in May 2013

Date of Written Report:

26th March 2013

Written Report Author:

Senior Management Accountant

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

      To agree the implementation of an increase in contributions made by residents of the Cottage Homes.

 

Decision(s):

The Minister approved the increase of contributions by residents of both Victoria Cottage Homes and George V Cottage Homes by 2.9% with effect from the 20th May 2013.

Reason(s) for Decision:

It is considered appropriate that the contributions made by residents of the Cottage Homes are increased by a rate equivalent to the increase in pension rate effective from 1st October 2012.

Resource Implications:

Financial:  Potential increase in revenue of £5,700 per annum.

 

Action required:

Finance Director to notify the Treasury and Resources Department to ensure that approval is granted under Financial Direction 4.1 as the increase exceeds the threshold for increases in States fees and charges set at 2.5%.

 

Finance Director to request that the Treasury and Resources Minister approve the future increases to contributions linked to the increase in pension rates, where this increase is greater than 2.5%.

 

Subject to T&R approval, Finance Director to implement the increase in contribution rates with effect from 20th May 2013.

Signature:

 

 

Position:

MINISTER

 

Date Signed:

 

 

Date of Decision (If different from Date Signed):

 

 

Victoria Cottage Homes and George V Cottage Homes: Residents Contribution: Increase

 

 

Date of Report:  26th March 2013

 

REPORT FOR THE MINISTER FOR HOUSING

 

INCREASES IN CONTRIBUTIONS PAYABLE BY RESIDENTS OF COTTAGE HOMES WITH EFFECT FROM 20th May 2013

 

Purpose of the Report

 

To request approval for the following:

 

That the Housing Department increase the level of contributions for accommodation at George V and Victoria Cottage Homes with effect from 20th May 2013 by a rate equivalent to the effective rate of increase in Social Security pensions with from October 2012. This comprises the actual increase of 1.5% in October 2012 and the later additional backdated increase of 1.4% paid from the 9th May 2013, a total of 2.9% for the 2012 – 2013 period.

 

Background

 

The Department manages both Victoria Cottage Homes and George V Cottage Homes (the homes) which are occupied by pensioners who pay a contribution towards the running costs of the homes under respective constitutions.  The last increase in contributions took place in April 2012 at a rate of 2.5%, the rate of the preceding pensions increase in October 2011.

 

In line with this existing practice it has been confirmed that Social Security pensions increased in October 2012 by 1.5% and that an additional backdated increase will be made from the 9th May 2013 of 1.4% bringing the total effective increase from October 2012 to 2.9%. It is considered appropriate to continue to link the increase in contributions to that metric such that the impact of the increase on the residents is minimised.

 

Summary Financial Information:

 

 

 

 

£

 

£

 

£

Victoria Cottage Homes

 

Number

 

Weekly Charge

 

Increase @ 2.9%

 

New Weekly Charge

 

 

 

 

 

 

 

 

 

Single Occupancy

 

25

 

31.95

 

0.92

 

32.87

Double Occupancy

 

37

 

55.91

 

1.62

 

57.53

2 Bed Flat

 

1

 

69.91

 

2.02

 

71.93

 

 

 

 

 

 

 

 

 

George V Cottage Homes

 

Number

 

Weekly Charge

 

Increase @ 2.9%

 

New Weekly Charge

 

 

 

 

 

 

 

 

 

Double Occupancy

 

15

 

55.91

 

1.62

 

57.53

 

 

 

 

 

 

 

 

 

Total Annual Contributions

 

 

 

 

 

 

 

 

 

Number

 

Existing Maximum Annual Contributions

 

Increase @ 2.9%

 

Revised Maximum Annual Contributions

 

 

 

 

 

 

 

 

 

Single Occupancy

 

25

 

41,535

 

1,205

 

42,740

Double Occupancy

 

52

 

151,181

 

4,384

 

155,565

2 Bed Flat

 

1

 

3,635

 

105

 

3,740

 

 

78

 

196,351

 

5,694

 

202,045

 

 

 

 

 

 

 

 

 

 

 

 

 

Recommendation

 

That the Minister approves the increase of contributions by residents of both Victoria Cottage Homes and George V Cottage Homes by 2.9% with effect from the 20th May 2013.

 

Housing Department

 

Report Prepared By: -

 

Jason English

Senior Management Accountant

 

………………………………                   Date:                                          2013

 

 

Report Checked By: -

 

J C Hamon

Finance Director

 

……..……………………….                   Date:                                          2013

 

 

Authorised By: -

 

Ian Gallichan

Chief Officer

 

……………………………….                  Date                                      2013

 

 

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