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Increase in contributions by residents of the Cottage Homes.

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A decision made (02/02/2009) regarding: Increase in contributions by residents of the Cottage Homes.

Decision Reference:           MD-H-2009-0010

Decision Summary Title :

DS – Proposal for Increase in Cottage Homes Contributions with effect from 2nd March 2009

Date of Decision Summary:

26th January 2009

Decision Summary Author:

Brian Welsh

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 :

Proposal for Increase in Cottage Homes Contributions with effect from 2nd March 2009

Date of Written Report:

22nd January 2009

Written Report Author:

Jason English

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

      To agree the implementation of an increase in contributions 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 4.3% with effect from the 2nd March 2009.

Reason(s) for Decision:

The contributions made by the residents of the Cottage Homes have not increased since April 2007. It is considered appropriate that the contributions are increased by a rate equivalent to the increase in pension rate in October 2008.  

Resource Implications:

Financial:  Potential increase in revenue of £7,910 per annum.

Action required:

Finance Director to implement the increase in contribution rates with effect from 2nd March 2009.

Signature: 

Position:

MINISTER

Date Signed: 

Date of Decision (If different from Date Signed): 

Increase in contributions by residents of the Cottage Homes.

Date of Report:  22 nd January 2009  

REPORT FOR THE HOUSING MINISTER  

PROPOSAL FOR INCREASES IN CONTRIBUTIONS PAYABLE BY RESIDENTS OF COTTAGE HOMES WITH EFFECT FROM 2 ND MARCH 2009  

Purpose of the Report  

To request approval for the following: 

That the Housing Department increase the level of charges for accommodation at George V and Victoria Cottage Homes with effect from 2nd March 2009 by a rate equivalent to the increase in Social Security Pensions on 2nd October 2008. 

Cottage Homes  

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 2007 at a rate of 2.5%.   

Social Security pensions increased on 2nd October 2008 by 4.3% and it is considered appropriate to link the increase in contributions to that metric such that the impact of the increase on the residents is minimized. 

Summary Financial Information:

 

 

£

£

£

Victoria Cottage Homes

Number

Weekly Charge

Increase @ 4.3%

New Weekly Charge

Single Occupancy

27

28.70

1.23

29.93

Double Occupancy

41

50.23

2.16

52.39

 

 

 

 

 

George V Cottage Homes

Number

Weekly Charge

Increase @ 4.3%

New Weekly Charge

Double

14

50.23

2.16

52.39

 

 

 

 

 

Total Annual Contributions

 

Number

Existing Potential Annual Contribution

Proposed Increase

Revised Potential Annual Contribution

 

 

 

 

 

Single Occupancy

27

40,300

1,730

42,030

Double Occupancy

55

143,700

6,180

149,880

 

 

184,000

7,910

191,910

 

Recommendation 

That the Minister approve the increase of contributions by residents of both Victoria Cottage Homes and George V Cottage Homes by 4.3% with effect from the 2nd March 2009. 
 

Report prepared by:

  

 

Jason English – Senior Management Accountant

 

    

Report approved by:

  

 

Brian Welsh – Director of Finance

 

 

Date of Report

22nd January 2009

 

 

 

 

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