Barking and Dagenham Council is set to broaden its leaseholder payment options for major works, aiming to ease financial burdens and improve revenue collection. The decision came during a recent Cabinet meeting, where officials discussed a proposal to introduce more flexible payment plans for leaseholders facing significant repair or improvement costs.

The move is designed to provide leaseholders with greater control over their finances while ensuring the council can recover expenses efficiently. The council also aims to improve communication with leaseholders through an improved communication plan, an updated portal, and regular newsletters, to ensure leaseholders are aware of all available payment options and application processes. Cllr Maureen Worby, Cabinet Member for Adult Social Care, Health and Housing, presented the report, highlighting the need for updated policies. She noted that the last review of the policy was in 2013, making an update well overdue.

Under the new proposal, leaseholders will have access to several enhanced and new payment options:

  • Enhanced Prompt Payment Discount: An increased discount of 5% for payments made within six weeks, and 2.5% for payments within 12 weeks.
  • Extended Payment Plans: Interest-free credit for 12 to 24 months, depending on the debt amount, and standard interest rates (Bank of England base rate plus 1%) for works exceeding £5,000.
  • Prepayment Periods: Extended periods for prepayments, allowing residents to spread costs before works commence.
  • Discretionary Voluntary Charge Scheme: Improved terms with an initial three-year interest-free period and partial repayment options.
  • Hardship Fund: Introduction of a hardship fund to support leaseholders facing financial difficulties.

![Survey results showing the impact of the rising cost of living on residents, with the majority reporting increased costs and difficulty coping.](https://opencouncil.network/rails/activestorage/blobs/redirect/eyJfcmFpbHMiOnsibWVzc2FnZSI6IkJBaHBBOXdjRFE9PSIsImV4cCI6bnVsbCwicHVyIjoiYmxvYl9pZCJ9fQ==--a2723f2b3e69886f20d0d1a41150c2f917090af8/page58Figure_3.jpeg Survey results showing the impact of the rising cost of living on residents, with the majority reporting increased costs and difficulty coping.

These changes aim to address the financial realities faced by many leaseholders, particularly those who are not wealthy and are simply managing to make ends meet. The learning from the fire at Samuel Garside highlighted that many leaseholders could not even afford insurance on their properties.

The council will conduct a full consultation process with leaseholders to gather feedback on the proposed changes. This will include discussions at the leaseholder conference later this autumn. If there are no major amendments, the Strategic Director for Housing, Environment and Communities will be authorized to implement the new scheme.

The Cabinet has approved the recommendations, signaling a commitment to supporting leaseholders and improving housing management practices in the borough. This initiative is expected to provide much-needed financial relief and promote better communication between the council and its leaseholders.