We know the next few months will continue to be hard for our residents with the ongoing cost of living crisis and rising energy costs. We are writing to all our tenants and leaseholders on the support available to help with the recent increase in rents, service charge, insurance, and major works.
Information for Tenants
Rent Increase 2024/2025
If you’re a social housing resident, we follow rules set by the government when we calculate any changes to your rent each year.
Your rent has increased by 7.7%, in line with Government guidelines for social housing rents. Service charges are not affected by the 7.7% rent increase and continue to be calculated based on the cost of providing the service.
Despite this, for most tenants who are claiming full benefit, the rent increase will be mitigated by increases in Housing Benefit or the housing element of Universal Credit.
£1m Rent Support Fund for tenants
Last year we created a rent support fund to help tenants who were struggling with the increased cost of rent. From April 2024, rents will rise again, so we have set aside an additional £1m to continue this fund. The Fund is open to Council tenants who are not entitled to full Universal Credit or Housing Benefit and need support with paying their rent.
If you are not claiming benefit and would like to speak to someone about this fund, please register your interest below and an income officer will contact you.
Related documents
Energy Price Increase, district or communal heating system
Leaseholders and tenants on a district or communal heating system will pay higher energy charges because of the significant rise in costs due to the energy crisis. This also affects the increase in communal electricity costs.
We are aware that high energy prices are still a big concern for households and businesses across Westminster. However, our ability to bulk buy gas means that the cost of energy to our residents on district heating networks is still approximately half that of the market rate.
If you are finding it difficult to pay your rent and service charge then it is important to contact us as soon as possible, our friendly income team are here to help. The sooner you contact us, the sooner we can help you.
You can contact us by phone on 0800 358 3783 or email: [email protected]
Related documents
Information for Leaseholders
Service charges
If you are a leaseholder you may see an increase in some areas of your service charges this period for a variety of reasons. We have outlined some of the reasons why below.
The overall increase in service charges, excluding energy and insurance, is 8.85%.
- Buildings Insurance
Leaseholders must also contribute to the cost of insuring the building. The insurance market is in crisis, which has led to a large increase in costs. You may recall that early in 2023, or existing provider withdrew from the market, leaving just one provider – Protector Insurance - for leasehold building insurance in London. Fortunately, we were able to secure one-year contract from 1st of April 2023, enabling us to tender the leasehold policy at the same time as the Council’s full insurance programme in 2024. We are currently consulting with leaseholders on a new five-year agreement with Protector Insurance. You should have received a Section 20 Notice of Proposal, reference ‘BIrelet’ with more details about our proposal. The full information can be found in the Dropbox link below. https://www.dropbox.com/scl/fo/ka59csodwkbc7xcxorto6/h?rlkey=j8096hpq6dieq119wfnjg8wcv&dl=0
Other Councils are also having a similar experience in procuring insurance. The London Leasehold Officers Forum have written directly to the Minister of State for Housing outlining the issues we are facing in the insurance sector and the impacts it is having on our leaseholders and we have urged them to look into our concerns and make changes.
- Communal Electricity
Supply and demand issues are pushing up wholesale energy prices. This has driven the increase in the charges for communal electricity to your blocks and estates.
- Heating and Hot Water
The nationwide increases in gas and electricity costs will affect the charge for heating and hot water to your home if you are on a communal heating system. We know increases in energy costs are worrying for our residents, but we would like to reassure you that the gas charges for communal energy systems are still cheaper than for residents with individual boilers not on a communal system.
Service Charge Support available
If you are finding it difficult to pay your service charge then it is important to contact us as soon as possible, our friendly Service Charge Collections Team are here to help.
Help and support with your service charge
Related documents
Leaseholders who have had major works
Some leaseholders will be charged for major works as well. These charges are for necessary repairs, renewals, and in some cases, improvements to specific homes and blocks which we can't do under the normal day‐to‐day repairs due to the amount of work involved. Those leaseholders who are receiving these charges will have been consulted and will have received more information about the works.
What if I am struggling to pay the major works service charges?
From January 2023 we have made a significant change to our major works service charges payment options. These changes make Westminster’s payment options the best in London.
- In January 2023 we made a significant change to our major works service charge payment options, including an additional voluntary charge option. These changes make Westminster’s payment options the best in London.
- We have extended the current 60-month interest free payment option to include a further option of up to 120 months for service charges of £20k or more for our resident leaseholders. No interest will be charged on months 1-60. Interest is charged on the balance at month 60 for months 61-120.
- We now offer a new Discretionary Service Charge loan with payment terms up to 25 years.
- We now offer a voluntary service charge loan, which will be secured by a charge on the property. Please see below for more information
To see our payment plan options visit Major Works service charges payment plan.
Our cost of living support hub
The cost of living crisis is affecting us all. We have found that around a quarter of households in Westminster, more than 31,000, face a serious reduction in living standards due to rising costs, such as fuel, energy bills and food.
The information provided here can help you with everything from accessing government financial aid to finding local advice services.
More information on our Cost of Living hub
What other help is available
You can also call the following for advice:
- Citizens Advice Westminster - Advice Line 0808 278 7834
- National Debtline - Freephone 0808 808 4000
- Shelter – 0300 330 1234, calls cost less than local rate
- Step Change - Freephone 0808 138 1111 808 4000
- Debt Free London - Freephone 0800 808 5700 (24 hours a day
- Deaf Plus Westminster - [email protected]
https://www.westminstercab.org.uk/partnerships/projects/deafplus-westminster-advice-service/ - Debt Free London - Freephone 0800 808 5700 (24 hours a day) www.debtfreeadvice.com
- Age UK Westminster – 020 3004 5610 (Monday – Friday 10:00am - 2:00pm)
https://www.ageuk.org.uk/westminster/about-us/contactus/
Published: 15 March 2023