Agenda Item No: 9

 

THE VALE OF GLAMORGAN COUNCIL

 

CABINET MEETING: 7th FEBRUARY 2007

 

REPORT FROM THE DIRECTORATE OF COMMUNITY SERVICES

 

BUDGET FOR DISABLED FACILITIES GRANTS

 

Purpose of Report

 

1.         To seek approval to fund the excess demand on Mandatory Disabled Facilities grants from a projected underspend on grants in the Penarth Central Renewal Area.            

 

Background

 

2.                  The budget for Mandatory Disabled Facilities Grant in 2006/07 is £1,740,000.

 

3.                  The budget allocated by the Council to support Group Repair grants etc. in the Penarth Central Renewal Area is £500,000.  The budget from the Welsh Assembly Government for works in the Penarth Central Renewal Area is £1,500,000.

 

Relevant Issues and Options

 

4.       Of the £500,000 allocated by the Council to the Penarth Central Renewal Area £120,000 has been allocated for Renovation Grants to follow on from Group Repair schemes.  To date 6 phases of Group Repair have been completed and the owners of all of these houses offered a Renovation Grant.  Due to a low take up of grants only 8 Home Repair Assistance and 7 Renovation grants have been approved this year totalling £95,500.  It is likely that expenditure on these grants will not exceed £50,000 in this financial year leaving an underspend of approximately £70,000.

 

5.         It is forecast that the Group Repair Grant Programme of £1,830,000 will be under spent by approximately £95,000.  It is also the case that the average owners contribution has risen over the life of the Renewal Area so far.  The early Phases were averaging contributions of £3,500.00 per house whereas the latest Phases average over £5,000.00.  This means that there is more money coming back into the fund for Group Repair and this then enables us to renovate more houses with the money.  Contributions of over £690,000 has been collected in owners contributions as follows: 2002/03 £91,334, 2003/04 £82,127, 2004/05 £129,666, 2005/06 £213,949 and over £175,000 has been collected so far in this financial year.  The contributions collected this year could be used to meet the projected overspend on Disabled Facilities Grants.

 

 

6.   The budget for Mandatory Disabled Facilities Grant in 2006/07 is £1,740,000.  This is £300,000 less than was spent in 2005/06.  A large number of approved grants were carried over 05/06 into 06/07 which meant that we have had to implement the prioritisation regime previously agreed by Council to try and ensure the most needy cases have been approved first.  29 cases are currently awaiting a survey.  It is a fact that the high priority cases are generally more expensive. 

 

7.       It is practice, to ensure a full spend of the grant allocation each year, to over commit on new grant approvals i.e. to approve grants to a higher value than the budget.  This is because applicants have 12 months to carry out the grant works and very often cases straddle financial years and some owners will not start their works immediately after their grant is approved but wait until a time that suits their circumstances.  Therefore in order to spend £1,740,000, approvals of approximately £2,200,000 would normally be required.  However there is always the chance that owners will go ahead and complete works quickly and then put pressure on the budget, which is what is happening this year.  Spend for the month of December was more than twice as much as the same month last year, £277,973 compared to £115,943 in December 2005. 

 

8.       The abolition of the means test for parents of disabled children has led to an increase in applications and expenditure.  In 2005/06 we approved 8 grants for disabled children and this year we have approved 17.  Last year we spent £224,244.73 to December ’05 whereas this year to December ’06 we have spent £467,110.46.  Disabled Facilities Grants for disabled children are significantly higher in value than other Disabled Facilities Grants.   

 

The budget for Disabled Facilities Grant is as follows:

Capital funds for Disabled Facilities Grant                                    £1,500,000

Major Repairs Allowance For Disabled Facilities Grant                 £240,000+

Total budget for Disabled Facilities Grant                                     £1,740,000

Spend to 22/1/07                                                                              £1,730,000

 

a)     The total funding for Group Repair etc. is set out in the following table:

 

Funding

Budget

Forecast spend

Balance

WAG

Group repair

 

£1,500,000

 

 £1,500,000

 

         £0

Council

Group Repair Penarth Central Renewal Area

 

   £330,000

 

    £235,000

 

£95,000

 

Council

Group Repair Cadoxton

 

      £6,000

 

       £6,000

 

         £0

Council

Grants Cadoxton

(1 remaining grant-cancelled)

   

    £14,000

            

              £0

 

 £14,000

Council

Grants Penarth Central Renewal Area

 

   £120,000

 

      £50,000

 

 £70,000

Council

Environmental schemes

(£24,000 contingency fund not required)

 

     £30,000

 

        £6,000

 

  £24,000

Owners contributions

   £175,000

               £0

 £175,000

Total

£2,175,000

 £1,797,000

£378,0000

 

b)       In order to ensure that the Council can meet it’s obligation in paying for approved Disabled Facilities Grant and to enable contractors to be paid for carrying out grant works it is recommended that the projected underspend and contributions collected in the total sum of £378,000 from the Penarth Central Renewal Area grants budget be used to fund Disabled Facilities Grants for the remainder of this year.  

 

Resource Implications (Financial and Employment)

 

9.                  The provision of Disabled Facilities Grants can lead to a reduction in the need for expensive care packages.       

 

Legal Implications (to include Human Rights Implications)

 

10.       The approval of Disabled Facilities Grant applications is Mandatory.

 

Crime and Disorder Implications

 

11.       There are no crime and disorder implications arising form this report.

 

Equal Opportunities Implications (to include Welsh Language Issues)

 

12.       The provision of Disabled Facilities Grants enables disabled occupiers to remain independent in their own homes.

 

Corporate/Service Objectives

 

13.       Community Well Being

To make the Vale a safe and healthy place in which individuals, children and families can live their lives to the full.

           

Good Quality Local Housing

CW11 Complete the housing improvements within the Penarth Housing Renewal Area. (2009)

 

Policy Framework and Budget

 

14.       This report is a matter for Executive Decision by the Cabinet   

 

Consultation (Including Ward Member Consultation)

 

15.       There has been no consultation on this matter.

 

Appropriate Scrutiny Committee

 

16.      Community Wellbeing and Safety.

 

 

RECOMMENDATIONS

 

1)       It is recommended that the projected underspend and contributions from the Penarth Central Renewal Area budget in the sum of £378,000 be vired to fund the excess demand on Disabled Facilities Grants and the capital programme be amended accordingly. 

 

Reasons for recommendations

 

1)   To enable the Council to meet its obligation to pay approved Disabled Facilities Grants.

 

Background Papers

 

 

Contact Officer - Alun Billinghurst

 

Officers Consulted – Lawyer, Accountant