Release Date: 16-Aug-2011
KNH has today announced that an error has resulted in tenants being sent incorrect rent bills from April. The error came to light during a review of the first quarter of the financial year.
KNH Chief Executive Simon Rogers said:
“I want to apologise to all our tenants and to Kirklees Council for this mistake and to assure them that we will put it right.
“As soon as we discovered the error last week, we started an investigation to find out what happened and to make sure it never happens again. This is ongoing.
“The mistake meant that the rent bills sent out earlier this year did not reflect the full 5.9% rent increase for 2011/12. This has resulted in a shortfall in our rental income of about 1% of the amount we collect in a year – around £650K.
“We are working with the Council to resolve the issue but KNH will be responsible for recouping the shortfall. We will do this through a combination of increased savings and use of reserves. Services to tenants will not be affected.
“We will be writing to all our tenants with correct rent bills for the remainder of the year, as well as reminding them of the support that is available should they have financial problems, and I will be writing to everyone personally to apologise.
“Around 50% (11500) of our customers who receive full housing benefit will not be directly affected. Another 20% (4600) receive partial housing benefit and will see some increase. The remaining 30% (6900) who pay full rent will see their bills go up by an average of £1.22 per week for the remainder of the year.
“Again, I am very sorry that this has happened and can assure both our tenants and the council that we are taking steps to ensure that such a mistake does not happen again.”
KNH will now report to a future meeting of Kirklees Council’s Cabinet to set out how they will recoup the money and explain how they will prevent any similar errors occurring the future.
Details of the help and support available to tenants will be included with the corrected rent bills, which will be sent out in the next few weeks. Anyone with immediate concerns can contact KNH on 01484 414886.