Sheltered residents hit by charge increases

Price increases in sheltered housing have lead one resident to complain of "extravagant" charges from Rother Homes.

FOR Alf Drury, who lives in Auckland House, Wrestwood Road, a monthly payment of 40 more than doubled to 88 when the new charges came into effect on Wednesday, April 1.

The charges, which cover services such as fuel bills and maintenance costs, are met from his pension, currently 104 a week.

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Later this month his pension increases by 5 a week, falling short of the higher service charge, which equates to an extra 12 a week, meaning Alf's weekly pension for 09/10 has effectively decreased by 7.

Alf, 63, said: "We can't control the heating ourselves. The water comes on at seven o'clock, piping hot, and goes off at eleven. It's unnecessary and the cost is quite extravagant.

"If you were at home you could just put on a jumper, but as residents we can't economise."

Rother Homes calculate their charges based on an estimation of fuel costs for the year ahead.

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Jane Porter, Executive Director of Rother Homes, emphasised that no profit is made from the charges, which are set specifially to recover the cost of providing services and equipment to residents.

She said: "From April 1, 2009, residents living in Auckland House have for the first time had their service charges calculated on the actual cost of providing the services. These will therefore vary from year to year.

"As a result of this change some Rother residents have found that their service charges have increased. Service charges include the cost of fuel bills and are set for the year ahead based on estimates of likely usage. In addition, we have recovered the shortfall in charges from last year due to the large increase in fuel prices applied by energy companies.

"Rother Homes is fully aware of the current financial climate and its impact on our residents. For this reason it has been agreed that we will not pass on the full costs of these increases to the residents in Auckland House. Rother Homes will only apply a 25% increase to electricity bills and 30% to gas bills.

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"In addition to fuel costs the service charge includes a sinking fund. This covers the maintenance costs for lifts, upgrades to lifeline systems, new alarm systems and the furnishing of communal areas to ensure that Auckland House remains well maintained.

"Residents were consulted on the changes to how service charges would be calculated which are now more transparent and reflect the actual services they receive and benefit from.

"We have responded to residents concerns on an individual basis and provided support and advice as necessary. An additional letter is being sent to all residents affected offering more detailed explanations which will help clarify the situation."

Alf, who moved into his one bedroom flat in July 2005, described the mood in Auckland House as, "disgruntled".

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He said: "I don't see the other residents too often, but I'm not happy with the response and have written off to complain.

"The letter was clear enough but had no details. It explained there would be an increase but I'd like to see more about where they get their figures from.

"And why hit us so hard in one go? I don't know why they couldn't have staggered it out over the next few years.

"I know one chap has moved out following these charges."

Terry Hill, 66, has been a resident of Auckland House for four years.

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He said: "Granted the gas and electricity charges have gone up, but in the four years I've been here the service charge has increased by 50p a year. This year it's increased by 12.03.

"When I first came here I was paying roughly 8, and over four years it went to 10.01.

"With this increase it's gone up to 22.04. The residents are definitely feeling hard done by, but people don't stick together because they're frightened of losing their tenancy. They're vulnerable people."

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