Elderly residents in Wandsworth face huge charge increase

A South London woman living in a retirement home fears she is at risk of homelessness after being told her bills will rise by more than £100 a week.

Elderly residents in Oak House, Putney, were sent a letter from PA Housing in February announcing they will have to pay much higher bills – including rent, heating, water and electricity – from May 8.

Housing benefits cover some residents' rents and fixed service charges to varying extents, but not heating, water and electricity. Residents said the latter three charges are calculated communally for the building and split equally among them.

Maggie Jones, 69, told the Local Democracy Reporting Service that residents will be left "out of pocket" regardless of how much their housing benefits increase to help cover the extra costs and called for the hike to be lowered.

Ms Jones' overall charge will rise from £190.22 in 2022/23 to £300.88 in 2023/24 a week – a 58per cent hike, or £110.66. This includes an increase in electricity bills from £1.66 to £15.38 a week, or 827pc, and from £6.15 to £44.31 a week for heating, or 620pc. She said: "I've been renting for 25 years, private and social landlords, I have never been hit with such a big rent hike."

PA said it had reached the decision due to the cost of contracts increasing as suppliers charge more for their services amid the rise in energy prices in the letter announcing the hike.

After opening the letter, Ms Jones said: "We didn't sleep, we were worried, we were ringing family members. I told my daughter in complete panic: 'What am i going to do? Am I going to be homeless?'"

She added: "I've got the cushion of a private pension which others don't have and I'm still at risk of being homeless, so at least I do have an extra pension to help me… I'm marginally better off but I'm still at great risk of being homeless. So it's even worse for the others, even more of a worry."

Ms Jones said it's also the "principle" of raising the overall charge by such a percentage and added: "When inflation is at 8.8per cent, especially with vulnerable people in the community – none of us can go to work, none of us can get a job, none of us can find extra income and that's grossly unfair".

The Consumer Prices Index including owner-occupier housing costs rose by 8.8pc in the 12 months to January 2023, down from 9.2pc in December 2022, according to the Office for National Statistics.

Ms Jones said: "It's a rip-off, completely unjustifiable, and that's what really annoys me." She added: "We're going to be much worse off… no matter what happens." 

Dorothy Russell, 80, said her main concern is the hike in heating, water and electric charges as she faces an overall increase from £54.86 per month to £283.66. 

She said: "We don't have any control over the bill. My friend who lives in a council block, she has her own gas meter, electric meter, water meter so she can control the bills, if she wants to. We can't economise."

She claims residents were not invited to any meetings about the hike or given prior warning. She said: "We had no input. We don't know how they arrived at this figure. I want to see a bill." 

After learning of the increase, Ms Russell said she "went into a deep depression for a week". Ms Jones added: "It was too much. I couldn't do anything for several days. I just thought I can't do it, I can't deal with it." 

Rita Russell, another resident, said she had a "breakdown" and she does not know what to do in the face of the hike. She said "PA Housing can do something" to help residents.

Ian Watts, executive director of customer services at PA Housing, said: "We are very aware that the current cost-of-living crisis is already having a big impact on our residents at Oak House, and we know that rent and service charge increases are very worrying.

"By far the largest proportion of the increase is as a result of the rise in energy prices. And although most service charges are benefit-eligible, personal energy consumption is not.

"A member of our tenancy sustainment team will be visiting Oak House to support residents in making sure they receive the benefits they're entitled to, including applying for the recently announced Energy Bill Support from the government.

"We do appreciate how difficult things are for lots of people at the moment and we're committed to supporting any resident who may be struggling."