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Billing and Collections contract with Welsh Water

Paul McAleer made this Freedom of Information request to Vale of Glamorgan Council

The request was successful.

From: Paul McAleer

7 December 2010

Dear Vale of Glamorgan Council,

It is my understanding that a number of your tenancies are subject
to a contract between the Council and Dwr Cymru, Welsh Water.

My questions regarding this are

1 Do the tenancy agreements for these tenants include a provision
of the collection of water charges as part of their collectable
rent.
2 Do tenants have an alternative tenancy agreement available e.g.
do tenenats have to agree to this tenancy agreement in order to
become tenants of the Council.
3 Can tenants opt out of this arrangement and make their own
provision for the payment of water charges.
4 Can tenants ask for a meter to be installed and pay for water
calculated on usage rather than rateable value.
5 If the answer to 4 is yes, then will the council still collect
this charge.
6 Are seperate accounts held for the water charges i.e. is there a
single rent account or is there a rent and a water account. In the
"Vale of Glamorgan Council - Policy for Setting Rents and Service
Charges" Annexe 1, Rent, Service Charges and Water are identified
as seperate entities and described in paras 2.4, 2.5 and 2.6
respectively giving an indication that water charges are not
"rent".
7 If seperate accounts are held are they made available to the
tenants or are they simply informed of a single rent liability.
8 Where rent arrears arise would the Council seek possession /
eviction if the arrears could be identified as solely relating to
water charges.
9 If the answer to 8 is yes then have the Council ever sought or
been given possession on this basis.
10 If the answers to 8 and/or 9 are yes then does the council seek
possession on the grounds of rent arrears or for breaking some
other provision of the tenancy agreement.
11 Does the council have a standard tenancy agreement for tenancies
incolving the collection of water charges on behalf od Dwr Cymru,
Welsh Water, if there is a standard agreement could you supply a
copy.

Yours faithfully,
Mr Paul McAleer

Link to this

From: FOI Unit
Vale of Glamorgan Council

13 December 2010

Mr Paul McAleer

Further to your FOI request please below the response from the Housing
Department

I can confirm that the Council charges an inclusive rent which includes
water and other service charges. Income received is not collected as
separate income and no separate accounts exist. Water charges are based on
an annual calculation received directly from Dwr Cymru and are set out in
the offer letter which all prospective tenants receive prior to signing
their tenancy agreement. The Council has canvassed its tenants on a number
of occasions regarding the issue of whether to continue water collections
as part of our income service and we have received unequivocal support for
the service to continue. The arrangement has been in existence for over 25
years and is perceived as a valuable service to our tenants giving them
the opportunity to pay their water charges on a weekly basis with their
rent.

1 Do the tenancy agreements for these tenants include a provision of the
collection of water charges as part of their collectable rent? - Yes as
other collectable income

2 Do tenants have an alternative tenancy agreement available e.g. do
tenants have to agree to this tenancy agreement in order to become tenants
of the Council? - No

3 Can tenants opt out of this arrangement and make their own provision for
the payment of water charges? - No

4 Can tenants ask for a meter to be installed and pay for water calculated
on usage rather than rateable value? - Yes

5 If the answer to 4 is yes, then will the council still collect this
charge? - No

6 Are separate accounts held for the water charges i.e. is there a single
rent account or is there a rent and a water account? - In the "Vale of
Glamorgan Council - Policy for Setting Rents and Service Charges" Annexe
1, Rent, Service Charges and Water are identified as separate entities and
described in paras 2.4, 2.5 and 2.6 respectively giving an indication that
water charges are not "rent" - No

7 If separate accounts are held are they made available to the tenants or
are they simply informed of a single rent liability? - n/a

8 Where rent arrears arise would the Council seek possession / eviction if
the arrears could be identified as solely relating to water charges? - Yes

9 If the answer to 8 is yes then have the Council ever sought or been
given possession on this basis? - Yes

10 If the answers to 8 and/or 9 are yes then does the council seek
possession on the grounds of rent arrears or for breaking some other
provision of the tenancy agreement?

Rent Arrears

11 Does the council have a standard tenancy agreement for tenancies
involving the collection of water charges on behalf of Dwr Cymru, Welsh
Water, if there is a standard agreement could you supply a copy - Yes

Should you have any queries then please contact Mr Ingram (Operational
Manager Public Housing) on either of the following:

Tel 01446 709516

[email address]

Regards

FoI Unit

Vale of Glamorgan Council

show quoted sections

Link to this

From: Paul McAleer

13 December 2010

Dear FOI Unit,

Thank ou for your peompt response.

I note you have answered "Yes" to question 11. Could you please
supply a copy of the standard tenancy agreement mentioned in
question 11.

I also note you have answered "Yes" to question 9. Could you please
supply the number of times this has happened in the last 5 years

Yours sincerely,

Paul McAleer

Link to this

From: FOI Unit
Vale of Glamorgan Council

13 December 2010

tenancy agreement.pdf
2.0M Download View as HTML

Mr Paul McAleer

Apologies for the error however further response from the Operational
Manager is as follows:

Question 11 - agreement inserted

Question 9 - The Council charges an inclusive rent and it is not possible
to disaggregate payments made by tenants. Payment may include other
charges such as service charges, insurance, heating, garages(where a
garage is rented).The Rent Accounting system as I identified in other
responses does not collate payments into their specific elements

Regards

Foi Unit

Vale of Glamorgan Council

show quoted sections

Link to this

Paul McAleer left an annotation (16 December 2010)

I note in reply the following statement:
"The Council has canvassed its tenants on a number
of occasions regarding the issue of whether to continue water collections
as part of our income service and we have received unequivocal support for
the service to continue. The arrangement has been in existence for over 25
years and is perceived as a valuable service to our tenants giving them
the opportunity to pay their water charges on a weekly basis with their
rent."
I wonder if when people were polled about this "service" if they were aware that not paying their water could lead to eviction.
I also note the use of the word "opportunity" which would normally be associated with a degree of choice, however the Council have made it clear in their response that there is no choice in this payment method - if you want a council property then you have to put up with this contract that the council have with Welsh Water. (although possibly they do indicate that having a meter installed would mean bills from Welsh Water and the removal of the possibility of eviction).
Surely if the council genuinely want to offer a service then they could make arrangement to collect monies payable to Welsh Water when people pay their rent without making it a "part of the rent" and an obligation under the tenancy agreement.
The upshot of all this appears to be that the poorer members of society face eviction for not paying their water bill where as people who can afford to own or rent privately don't face such draconian measures if they fall behind with water payments.
The benefit to tenants of this scheme is very limited and the consequences are severe, whereas for the Council they receive a commission from Welsh Water who themselves benefit from having virtually guaranteed payment from the poorest (who most frequently fall behind with water payments).