Proposal for Future Rent Increases.

Information about the publication of Ministerial Decisions

A formal published “Ministerial Decision” is required as a record of the decision of a Minister (or an Assistant Minister where they have delegated authority) as they exercise their responsibilities and powers.

Ministers are elected by the States Assembly and have legal responsibilities and powers as “corporation sole” under the States of Jersey Law 2005 by virtue of their office and in their areas of responsibility, including entering into agreements, and under any legislation conferring on them powers.

An accurate record of “Ministerial Decisions” is vital to effective governance, including:

demonstrating that good governance, and clear lines of accountability and authority, are in place around decisions-making – including the reasons and basis on which a decision is made, and the action required to implement a decision
providing a record of decisions and actions that will be available for examination by States Members, and Panels and Committees of the States Assembly; the public, organisations, and the media; and as a historical record and point of reference for the conduct of public affairs

Ministers are individually accountable to the States Assembly, including for the actions of the departments and agencies which discharge their responsibilities.

The Freedom of Information Law (Jersey) Law 2011 is used as a guide when determining what information is be published. While there is a presumption toward publication to support of transparency and accountability, detailed information may not be published if, for example, it would constitute a breach of data protection, or disclosure would prejudice commercial interest.

A decision made (25/08/2008) regarding: Proposal for Future Rent Increases.

Decision Reference: MD-H-2008-0085
Decision Summary Title :	DS – Proposal for Future Rent Increases		Date of Decision Summary:	22nd August 2008
Decision Summary Author:	Dominique Caunce		Decision Summary: Public or Exempt? (State clauses from Code of Practice booklet)	Public
Type of Report: Oral or Written?	Written		Person Giving Oral Report:	N/A
Written Report Title :	Proposal for Future Rent Increases		Date of Written Report:	15th August 2008
Written Report Author:	Jason English		Written Report : Public or Exempt? (State clauses from Code of Practice booklet)	Public
Subject: To agree the basis for future Social Housing rent increases.
Decision(s): The Minister approved the following: That the Housing Department use the mid-point of Average Earnings and RPI Low Income measures as the basis for future rent increases, providing that adjustments can be made in line with department policy during the Business Planning process.
Reason(s) for Decision: To ensure that the Housing Department has a basis for future rent increases that is flexible enough to incorporate future policy decisions.
Resource Implications: Financial: The rent increase effective 6th October 2008 will be 3.7%.
Action required: Finance Director to implement the rent increase for 6th October 2008 and to use this metric as the basis for rent increases in future business plans. Finance Director to agree the tenant communication with the Tenant Services Director.
Signature:		Position: Minister
Date Signed:		Date of Decision (If different from Date Signed):

Proposal for Future Rent Increases.

REPORT TO THE MINISTER FOR HOUSING

Proposal for Future Rent Increases

Purpose of the Report

To request approval for the following:

That the Housing Department use the mid-point between the Average Earnings and RPI Low Income measures as the basis for future rent increases, providing that adjustments can be made as necessary to accord with departmental policy during the Business Planning process.

An increase in social housing rental levels from 6th October 2008 by 3.7%.

Future Housing Rent Increases

It is recommended that the basis for future Housing rent increases is taken as the mid-point between the Average Earnings and RPI Low Income statistics provided by the States of Jersey Statistics Unit. This is in line with the basis for Income Support up-rating.

It is also recommended that information available from the March RPI figures in the current year, and the average earnings index from the previous year (the latter measure being produced annually in June), is used to drive the current year October rent increases as this will enable future business plans to be built using known numbers. The June RPI figures would not be released until July, which would be after the Business Plan is lodged.

It will be necessary for the Housing Department to have some flexibility against this base in order to accommodate any adjustment against the market or a change in policy. For example, if it were proposed that Housing rent should move closer to the market level, then the rent increase proposed during the Business Planning process would be based by the mid-point between Average Earnings and RPI Low Income but include an additional element in accordance with departmental policy.

Step change increases will be proposed as part of the annual Business Planning process and consideration will be given to the impact on the housing element of Income Support that such a step change would have. Any such change would be included in the appropriate business plan proposals and introduced from October alongside the normal indexed increase.

Recommendation

The Minister is recommended to approve the following:

That the Housing Department use the mid point between Average Earnings and RPI Low Income measures as the basis for future rent increases, providing that adjustments can be made as necessary during the Business Planning process.

To approve an increase in social housing rental levels on 6th October 2008 by 3.7% being:

the mid point between RPI Low Income of 2.7% (March 2008) and Average Earnings indexed increase of 4.7% (June 2007);
the same increase that will be applied to Income Support benefits by the Social Security Department.

Jason English

Senior Management Accountant

15th August 2008

L:\Finance\Finance Director\Rent\Review - October 2008\WR - Proposal for Future Rent Increases - V2.doc