We agree that the issue of rent increases from next April for council rents is a problematic one.  Councils and their ALMOs are very aware of the impact of the rising cost of living is having on their tenants and the communities they serve.  Our members are doing everything they can to try to support people to maximise their incomes, save energy and improve their health and well being during these difficult times.  ALMOs across the country are offering money advice, training and employment schemes, information and signposting to other services, food bank referrals and support through the Universal Credit process.  Our members manage some of the cheapest rented homes in the country and understand that this helps to provide much needed financial security and safety for people on low incomes. 

However, they are also seeing their own costs rise in terms of pay settlements for the lowest paid workers, increases in supplies and the cost of repairs and maintenance.  Councils and ALMOs do not want to put up the rent by CPI plus 1% at this time and even without a nationally imposed cap, of the 23 ALMOs we represent none are reporting that their councils are planning the full CPI +1% increase. 

But lower than inflation rent rises will lead to a big gap in funding for the much-needed repairs and maintenance that the stock requires let alone meeting the additional pressures of improving energy efficiency or building much needed new homes and all are reporting having to look at what cuts can be made to planned programmes or services. 

We believe the government therefore needs to engage with the sector to plug those investment gaps and help ensure council housing remains financially sustainable in the short to medium term.