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Victoria and George V Cottage Homes: Increase in contributions by residents

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 on 26 February 2010 to approve increases of contributions by residents of Victoria Cottage Homes and George V Cottage Homes

Decision Reference:        MD-H-2010-0017   

Decision Summary Title :

DS – Proposal for Increase in Cottage Homes Contributions with effect from 5th April 2010

Date of Decision Summary:

22nd February 2010

Decision Summary Author:

John Hamon

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 5th April 2010

Date of Written Report:

22nd February 2010

Written Report Author:

Jason English

Written Report :

Public or Exempt?

(State clauses from Code of Practice booklet)

Public

Subject:

      Cottage Homes - increase in contributions made by residents.

Decision(s):

The Minister approved the increase of contributions by residents of both Victoria Cottage Homes and George V Cottage Homes by 3.0% with effect from the 5th April 2010.

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 in October 2009, whilst remaining at a lower rate than the overall RPI Pensioner’s rate of 3.5% to December 2009.

Resource Implications:

Financial:  Potential increase in revenue of £5,800 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 implement the increase in contribution rates with effect from 5th April 2010.

Signature: 

Position:

MINISTER

Date Signed: 

Date of Decision (If different from Date Signed): 

Victoria and George V Cottage Homes: Increase in contributions by residents

Date of Report:  22 nd February 2010  

REPORT FOR THE HOUSING MINISTER  

PROPOSAL FOR INCREASES IN CONTRIBUTIONS PAYABLE BY RESIDENTS OF COTTAGE HOMES WITH EFFECT FROM 5 th April 2010  

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 5th April 2010 by a rate equivalent to the increase in Social Security Pensions on 2nd October 2009 of 3.0%. 

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 March 2009 at a rate of 4.3%.   

Social Security pensions increased on 1st October 2009 by 3.0% 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 @ 3%

 

New Weekly Charge

 

 

 

 

 

 

 

 

 

Single Occupancy

 

27

 

29.93

 

0.90

 

30.83

Double Occupancy

 

40

 

52.39

 

1.57

 

53.96

2 Bed Flat

 

1

 

65.50

 

1.97

 

67.47

 

 

 

 

 

 

 

 

 

George V Cottage Homes

 

Number

 

Weekly Charge

 

Increase @ 3%

 

New Weekly Charge

 

 

 

 

 

 

 

 

 

Double Occupancy

 

14

 

52.39

 

1.57

 

53.96

 

 

 

 

 

 

 

 

 

Total Annual Contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number

 

Existing Maximum Annual Contributions

 

Increase @ 3%

 

Revised Maximum Annual Contributions

 

 

 

 

 

 

 

 

 

Single Occupancy

 

27

 

42,022

 

1,261

 

43,283

Double Occupancy

 

54

 

147,111

 

4,413

 

151,524

2 Bed Flat

 

1

 

3,406

 

102

 

3,508

 

 

82

 

192,539

 

5,776

 

198,315

 

 

 

 

 

 

 

 

 

 

Recommendation 

That the Minister approve the increase of contributions by residents of both Victoria Cottage Homes and George V Cottage Homes by 3.0% with effect from the 5th April 2010. 
 

Report prepared by:<><><><> 

 

 

Jason English – Senior Management Accountant

 

    

Report approved by:<><><><> 

 

 

John Hamon – Finance Director

 

 

Date of Report

22nd February 2010

 

 

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