Tamworth Borough Council this week welcomed a proposal by the Government which could reduce the level of rent increase for Council tenants for 2009/2010 from over 6% to 3.1%.  If implemented the average weekly rent for a council property will be reduced from £67.33 to £65.38 per week.

As rent increases are set in accordance with a government formula the Council has little independent control over the level of annual increases and this proposal would enable the Council to offer a back dated reduction to tenants.

“This is potentially great news for all of our council tenants and we are pleased that the government is considering taking this action and has acknowledged the financial difficulties residents are currently facing” said Councillor Jeremy Oates, Leader of the Council. “However, it is unfortunate that this proposal was not brought forward before the beginning of the financial year so that help could have been provided sooner.

“If implemented the reduction will mean that the Council will have to recalculate rent levels and backdate adjustments to housing benefit claims. This is likely to cost around £12,000 and we have asked that Government consider reimbursing these costs rather than expect the residents of Tamworth to pay. We have also asked for reassurance that a lower rise in 2009 will not mean that higher increases are enforced in future years to make up the difference. It is also important to remember that around £2.6m of Tamworth tenants rent will be taken by central government this year to prop up services in other areas through the housing subsidy system.”

Councillor Mary Oates, portfolio holder for Quality of Life said “I welcome the governments proposals which I am sure will be a great help to tenants. This supports the Council’s work to help people through this difficult time. We have recently ran a successful rent campaign to help tenants reduce rent arrears by offering debt advice. Our Financial Inclusion Officer has helped tenants maximise their benefits and income and provided advice on managing their personal finances. We understand the financial pressure our residents face, and with a range of Council initiatives including the Tamworth CAN project, we are offering support and advice wherever possible. I would strongly urge any of our residents to get in touch with us if they are struggling to pay either their rent or Council Tax.”

The Council is now awaiting further information from the Government about the implementation of the proposed reduction expected in late June of this year and will keep residents informed of how this progresses.