People in social housing in South Essex could see heating bills rise
It's to keep up with national price hikes
Last updated 4th Nov 2022
People in social housing in South Essex could see their heating bills increase in the coming months.
South Essex Homes (SEH) is set to update the way its costs are calculated in the wake of national energy price hikes - with Southend councillors set to discuss the move next week.
Costs for residents in sheltered schemes and hostels will rise by about £8 a week.
Currently, SEH heating charges for tenants are based on historical costs from between five to 17 months ago. Heating costs were calculated at the start of the year on the assumption that energy costs would remain reasonably static as they have done in previous years.
This was then applied as part of the rent charge for residents living in properties with a communal heating system.
However, the cost of gas has continued to rise and SEH say, despite securing a rate lower than the domestic price cap, this still equates to a 200% increase.
They estimate that if they continue to charge tenants at current rates, there will be an estimated annual loss of over £400,000 on gas alone.
The charges are expected to be adjusted in January 2023 and will see energy costs for residents in sheltered schemes and hostels rise by an average of £7.87 per week.
Residents of general needs houses and flats won't be affected by the change.
Cllr Ian Gilbert, cabinet member for economic recovery, regeneration, and housing, said: “This is not a decision South Essex Homes has recommended to us lightly, and they have considered the financial pressures everyone is under at the moment.
“However, it is not sustainable for them to continue to subsidise what is the true cost of energy now, and with the grants and subsidies available from the Government such as the £400 to help with the cost of energy prices, it makes sense to make this change now, while affected tenants are already receiving this extra financial help, rather than to do it months down the line.
"In addition to national assistance, South Essex Homes themselves have created a hardship fund for tenants who are struggling, where money has been set aside to help those who are eligible.
“We know that over 70% of our tenants are in receipt of means tested benefits and will already be getting help towards the additional cost being incurred on energy this year, but South Essex Homes will target those households not currently in receipt of benefits to ensure that we are aware of their financial situation and that our residents are claiming all benefits and support that they may be entitled to.
"South Essex Homes also pledges to keep residents updated, make sure they are fully aware of the changes being made, how to access help and where they can ask questions.”