Council branded 'penny pinchers' over new sheltered accommodation charges in Blyth, Cramlington, New Delaval, Rothbury, and Amble

They are facing a weekly charge of around £30 after the council’s cabinet unanimously agreed to bring in service and heating charges.

It comes after the council saved Arnison Close in Allendale from closure in 2018, where service charges were already in place.

Coun Colin Horncastle, portfolio holder for community services, explained: “This is bringing us in line with all other authorities. We have been the odd one out in not charging for these services.

“We have eight sheltered accommodation schemes, and seven don’t have charges for some of the services, which goes back to 2015. In 2018, we were in great danger of losing the sheltered housing scheme in Allendale.

“It was a great facility for people in the west and this council took Arnison House in. Arnison did charge for services so this paper is about bringing all eight in line. We can’t have seven not being charged.”

The charges will be implemented in a phased manner – from April 2024, 50% of the charge will be payable by existing tenants, rising to 75% from April 2025 and reaching 100% in 2026.

However, the Labour opposition on the council has accused the Conservative-led administration of “penny-pinching” over the plans.

Labour leader Scott Dickinson said: “This penny-pinching strategy will affect many people who are already finding life difficult with the cost of living crisis.

“Even the council’s phased introduction will see people on average being charged an extra £15 a week in the first year. This is the difference between being able to put food on the table or going without.

“The sheltered accommodation affected is in Blyth, Cramlington, New Delaval, Rothbury, and Amble.

“Only a few weeks ago the council leader was talking about reaching out and putting an arm around all people in the county. This seems like a very strange way of going about it; penny-pinching on some of the most vulnerable people in our community.”

At a cabinet meeting, Coun Horncastle had explained that other options had been looked at.

He said: “The other extreme is taking the charge away, which would result in a £45,000 shortfall. By not charging, we are affecting the HRA (housing revenue account) which is mainly financed by revenue.

“All tenants are currently paying the costs, and some are not receiving those services. Like the rent increase in the budget, a large percentage are on housing benefit.

“Around 65% will not see any difference because it is being paid by somebody else. This is the only fair way. This is about protecting our HRA. We will still be charging less than other housing providers.”

A report presented to members said the operation and management of the schemes had been subsidised by approximately £659,000 over a seven-year period from 2015-16 to 2021-22. The subsidy is reducing the amount available in the HRA to fund both day-to-day operations and future capital investment in housing stock.

Members of the cabinet unanimously agreed to bring the charges forward.

Responding to Coun Dickinson’s comments, a spokesman for Northumberland Conservatives said: “We are surprised that Coun Dickinson has raised this as he is fully aware of the facts.

“Service charges are recognised as ‘industry standard’ and are applied, with few exceptions, by all social housing providers throughout the country. We believe the fairest way to meet these costs, which are over and above that covered by the weekly rent, is for the tenants who receive the additional services to pay for them.

“As part of implementing the charges, all tenants will be consulted and offered a personalised financial review to ensure they can access any benefit entitlement, and, as the introduction of service charges may trigger a new benefit claim depending upon their income. Most of the affected tenants are either in receipt of full housing benefit or partial housing benefit which will help offset some of the service charge.

“Service charges are legally required to reflect the cost of the services provided, and at the end of each year, a reconciliation will be undertaken to ensure that the charges are correct.

“When implemented, we believe the lowest rent and service charge for a NCC sheltered property would be £122.43 and the most expensive would be £141.47 which compares favourably with some schemes operated by other, major social housing providers in the county.”