Plan to increase service charges at housing association paused

Twm Owen, Local democracy reporter.

A housing association has “paused” plans that could have seen pensioners hit with “substantial” increases in charges they pay at retirement homes.  

Bron Afon housing association, which manages and maintains more than 8,000 homes across Torfaen, including many former council houses, had planned to increase service charges from this April.   

The social landlord has already agreed a 4.3 per cent increase in rents from April, which it says is in line with Welsh Government guidance.  

But tenants also faced having to fork out significant sums to pay increased service charges which can cover grounds maintenance and upkeep of communal areas as well as charges of communal energy costs.  

Cwmbran St Dials councillor Elizabeth Haynes said the proposed increases “were quite substantial” and unsettled tenants in retirement housing schemes.  

Bron Afon notified tenants in December of its proposed new charges and the Torfaen Borough Council cabinet member responsible for housing said several councillors had contacted him raising concerns about the increase, which is set by the association that is independent of the council and isn’t required to consult it on any changes.  

Labour’s David Daniels said he and senior officers had, because of concerns raised, contacted Bron Afon, which has now also promised to meet with councillors and explain its charges.  

The Pontnewydd Cwmbran councillor said: “I’m pleased that Bron Afon has decided to pause the proposed service charge increase for independent living schemes whilst they conduct a full review of their approach.  

“When the council and I became aware of the proposed service charge increase in December, senior officers and I engaged directly with Bron Afon’s leadership to express our concern about the process.  

“Members will know that all registered social landlords operate independently of the council, they set their own rent and service charges in line with Welsh Government policy, and there’s no statutory requirement for them to consult with the council before setting these fees.  

“We encourage all of our partners to speak to councillors when taking significant decisions which affect our residents.”  

Cllr Daniels said Bron Afon’s recently appointed chief executive Catherine Love has “given me a clear commitment…to meet with councillors, explain service charges process and listen to concerns.  

“Bron Afon told me they are committed to taking a balanced, customer-focused approach to the service charge and are committed to future service charges being reasonable, clearly explained and supported by evidence. Affordability will be one of the key considerations of the current review.”  

Independent Cllr Haynes raised the service charges at Torfaen council’s March meeting and asked if “vulnerable residents” would be “full consulted and protected from disproportionate increases”.  

Cllr Daniels said he is seeking “further assurances that vulnerable residents will remain a priority in this decision.”  

He also said, in response to Cllr Haynes, council officers have seen opportunities for energy saving measures in the association’s homes, and it is in discussions with it on “how these schemes can be rolled out at a greater scale.”  

Cllr Haynes had asked whether the council could help with external funding or joint procurement to counter sharp increases in communal energy costs.