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Clarion Housing Association Limited (202128485)

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REPORT

COMPLAINT 202128485

Clarion Housing Association Limited

6 June 2023

 

Our approach

The Housing Ombudsman’s approach to investigating and determining complaints is to decide what is fair in all the circumstances of the case. This is set out in the Housing Act 1996 and the Housing Ombudsman Scheme (the Scheme). The Ombudsman considers the evidence and looks to see if there has been any ‘maladministration’, for example whether the landlord has failed to keep to the law, followed proper procedure, followed good practice or behaved in a reasonable and competent manner.

Both the resident and the landlord have submitted information to the Ombudsman and this has been carefully considered. Their accounts of what has happened are summarised below. This report is not an exhaustive description of all the events that have occurred in relation to this case, but an outline of the key issues as a background to the investigation’s findings.

The complaint

  1. This complaint is about the landlord’s handling of:
  1. the resident’s queries about communal electricity charges, and;
  2. the associated complaint.

Background

  1. The resident has been an assured tenant of the landlord since 18 March 2013. The property is a two-bedroom flat.
  2. The communal hallway lighting is connected to the resident’s electricity supply. The landlord previously provided weekly rebates to the resident for this cost as a reduction from his rent.
  3. The resident contacted the landlord on 8 March 2021 after receiving his rent review letter. Previous rent review letters detailed his weekly rebate. However, in this instance, the landlord had not mentioned this. The landlord told the resident it would investigate this for him, and the resident subsequently chased on a weekly basis.
  4. The resident raised a formal complaint on 13 April 2021. The resident said he was unhappy that the landlord had not applied a rebate to his new rent schedule. He also complained that the landlord had not resolved the issue despite his contacting the landlord a month prior. The landlord sent its stage 1 response on 28 May 2021. The landlord provided the resident with £50 for its failure to answer the resident’s complaint within the timescales set out in its policy. It also confirmed that the resident had received the rebate until 4 April 2021. It applied the outstanding £4.08 for the most recent three weeks to his rent account.
  5. The resident escalated his complaint on 9 June 2021. He stated that he was unhappy as the matter still had not been resolved, and he had not received his electricity rebate for the financial year beginning April 2021/2022. He said he would either like the landlord to apply this to his rent account or for the landlord to remove the communal lighting from his electricity meter. The landlord provided its stage 2 complaint response on 30 July 2021. Within this, the landlord provided £25 for its delays in providing this response. The landlord explained that it could no longer automatically apply these credits to the resident’s account due to a change in its IT system. It also said it was investigating providing a permanent solution for all the residents currently paying for communal electricity.
  6. The resident brought his complaint to this Service on 30 March 2022. He was unhappy the landlord had still not put into place a process to refund him for the cost of the communal lighting. He felt the landlord had not resolved his issue and thought it was unfair he was paying for the cost of communal lighting. The landlord offered the resident £321.57 in lighting credits on 8 February 2023. This amount covered the 2022/23 financial year and the estimated costs from April 2023 until September 2023. Following correspondence with this Service, the landlord also offered the resident £350 compensation on 30 March 2023 for the inconvenience caused by its actions and the delays in communication.

Assessment and findings

The landlord’s handling of the resident’s queries about communal electricity charges.

  1. The resident’s payment for the block’s communal hallway lighting, and the refunds received from the landlord because of these, do not form part of the tenancy agreement. The landlord, therefore, does have the potential to amend the arrangement. However, before amending the arrangement the landlord should have consulted the resident as this change affected him and his rent payments. The landlord failed to do so.
  2. The landlord advised that it had to change its process due to introducing a new IT system. The landlord’s new system did not allow it to hold payments in a separate sub-account. The landlord’s decision to keep these payments within the main rent account affected other residents’ benefit allowance calculations. Given this, the landlord’s decision to amend its policy was appropriate.
  3. The landlord has confirmed that it has still not resolved the issues of the electricity or the means of payment. For completeness this report will reference actions the landlord has taken following the internal complaints process whilst still exploring the possible solutions available to it. In its letter from February 2023, it offered the resident £321.57. This payment offer covered the 2022/23 financial year and the estimated costs from April 2023 until September 2023. Although the landlord should continue working towards a permanent solution, this is considered a fair temporary solution. If the landlord has not developed its new policy by September 2023, it should consider paying the resident in advance.
  4. The landlord has also acknowledged that it failed to communicate with the resident properly throughout this process. It also noted that its failures to do so resulted in distress and inconvenience for the resident. For these failures, the landlord offered the resident £350 in compensation in its letter from 30 March 2023.
  5. Had the landlord made this offer during its complaints process this Service would have made a finding of reasonable redress. However, given the delay in providing this compensation, this Service believes there was maladministration in the landlord’s handling of the issue.
  6. If the landlord has not yet paid the combined £671.57 to the resident, this Service orders that it should reoffer this to the resident.
  7. It is recommended that the landlord outline a communication arrangement with the resident to keep him updated on its progress on updating the policy.
  8.  It is also recommended that if the landlord has not developed its new policy by September 2023, it should consider paying the resident in advance.

The landlord’s handling of the associated complaint.

  1. When the resident made the complaint, the landlord’s complaints policy did not include timescales. This policy had two stages. It stated that if the landlord doesn’t resolve the complaint after the first response, the resident can escalate to a peer review stage. This second stage is where another member of the landlord’s staff considers the complaint. The landlord has since updated its policy. However, the timescales outlined in its new complaint policy remain outside this Service’s Complaint Handling Code.
  2. The resident first raised his complaint on 13 April 2021, and he received a response on 28 May 2021. When it could not maintain the timescales it had told the resident, the landlord contacted him twice to provide updates. For its failings, the landlord has offered £50 compensation. This compensation is reasonable redress for the distress and inconvenience of the situation.
  3. The resident requested an escalation of his complaint on 9 June 2021, and the landlord acknowledged this on 17 June 2021. The landlord said it would aim to provide a response within 20 working days. It provided its response on 30 July 2021, 37 working days later. Due to its delayed response, the landlord offered the resident an additional £25 compensation.
  4. The responses provided by the landlord were fair and reasonable in tone and content.
  5. The landlord’s offers of compensation amount to reasonable redress for its failures in handling the resident’s complaint. If the landlord has not already paid this to the resident, this Service recommends that it re-offer this compensation.

Determination

  1. In accordance with paragraph 52 of the Housing Ombudsman Scheme, there was maladministration in the landlord’s handling of the resident’s queries about communal electricity charges.
  2. In accordance with paragraph 53(b) of the Housing Ombudsman Scheme, the landlord has made an offer of reasonable redress in respect of its handling of the associated complaint.

Orders and Recommendations

Orders

  1. If it has not already done so, within four weeks of the date of this report the landlord should pay the resident a total of £671.57, comprising:
    1. £321.57 for lighting credits as offered on 8 February 2023.
    2. £350 compensation as offered on 30 March 2023.
    3. Provide evidence that it has done so.

Recommendations

  1. If it has not already paid these, the landlord should reoffer the resident its compensation offers made in its stage 1 and 2 complaint responses for its complaint handling failures amounting to £75.
  2. The landlord should consider providing the resident with a communication arrangement outlining how often it will provide updates whilst it is still investigating solutions.
  3. The landlord should also consider providing a written breakdown of the new electricity policy when this has been formulated.
  4. If the landlord has not developed its new policy by September 2023, it should consider paying the resident in advance again.