Tenants of Dudley Council in the Black Country are set to see their weekly rent bills rise by the maximum amount permitted by the government from the start of the new financial year.
Budget pressures drive maximum increase
Councillors on Dudley's Housing and Assets Scrutiny Committee debated the planned charges on January 15, ahead of a final vote by the full council scheduled for January 29. The proposed increase of 4.8 percent is the highest allowed under government guidelines, which are tied to inflation rates.
Housing chief Councillor Ian Bevan, the cabinet member for housing and homelessness, defended the decision, stating it was necessary to maintain and modernise services. "The less collected, the less the council has to invest in our housing services and our housing stock," he explained, emphasising that rental income is ring-fenced for reinvestment into tenant services.
Impact on tenants' pockets
The rise translates to an average weekly increase of £4.76 for council tenants. A detailed breakdown shows that:
- 86 percent of tenants will pay between £4 and £5.99 extra per week.
- 2.3 percent will see their rent go up by £6 per week.
Despite the near five percent rise, the council notes that Dudley's rents will remain below the average for both the West Midlands region and England as a whole. Furthermore, the rent hike will be partially offset for many by a simultaneous reduction in weekly service charges.
Service charges fall for majority
In a silver lining for most, separate service charges are set to decrease. Cllr Bevan confirmed that 72 percent of the 6,855 tenants who pay these charges will see a reduction. Of the 27 percent facing an increase, the majority will pay less than £2 extra per week.
The council report acknowledges the financial strain, revealing that around 73 percent of its tenants receive support through Housing Benefit or Universal Credit. For those who don't, the authority pledges to mitigate the impact by signposting advice and support, including discretionary housing payments where appropriate.
Cllr Bevan concluded with a stark warning about the long-term consequences of not implementing the full increase, arguing it is essential for the future of the borough's housing stock. The £3.9 million in additional revenue generated by the rise is earmarked exclusively for housing services.
