Cambridge City Council error led to tenants being overcharged

By Hannah BrownLocal Democracy Reporting Service

A council has admitted overcharging some tenants for three years.

Cambridge City Council said the error came to light after a review found the way affordable rents had been calculated was not correct.

The council said it had written people affected and would pay money back.

A report presented to a housing scrutiny committee meeting said a review had found historical errors that led to some people paying more than they should in affordable rent.

Officers said the error also affected South Cambridgeshire District Council, due to the authorities having a shared policy.

People living in affordable rented homes pay below what the market rent for a property would be.

'Reimburse'

"As part of our review processes, legal advice sought has identified that the authority has historically misinterpreted government guidelines and rent legislation in two areas," said the report.

"The way affordable rents were calculated was not correct and affected tenants have been overcharged.

"To remedy this, a correct (lower) current rent will need to be calculated for affected tenants.

"There will also be a need to reimburse tenants for any sums over-paid, taking into account the amount that may have been met by the Department for Work and Pensions in the form of housing related benefits."

'Rent increases'

Councillors were told errors had been reported to the Regulator of Social Housing.

They agreed rent increases for council tenants in the city from April.

Social rents for council homes are due to be increased by 7.7%, which will be an average increase of £8.69 per week.

Affordable rents are also due to increase by 7.7%, an average increase of £13.05 per week.

Garage and parking space charges are also due to be increased by 7.7 per cent in line with the other increases.

A report said the housing budget faced "significant financial challenges".

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