The Housing Ombudsman is preparing to undertake over 10,000 investigations in 2023-24, following a “seismic increase” in severe maladministration findings issued since 2021-22 and a rise in demand after the coroner’s report into the death of Awaab Ishak.
In the consultation for its 2023-24 business plan, the ombudsman said the increase next year is “considerably higher” than in the past, with around a four-fold increase. It said to ensure it can meet demand, growth forecasts have been “significantly increased” above its original assumptions.
The ombudsman said that an “unprecedented” surge in complaints in 2021-22 has made social housing a “high-complaints sector”, averaging nine ombudsman complaints per 10,000 households for that year.
This is “considerably higher” than the Local Government and Social Care Ombudsman and just short of the Parliamentary and Health Service Ombudsman.
In the first half of 2022-23, complaint volumes stabilised at this new, higher benchmark, but the removal of the ‘designated person’ requirements at the start of October created an “expected surge” in incoming volumes, the consultation document said.
This change in law means that residents no longer have to contact a designated person or wait eight weeks before referring their complaint to the ombudsman if they remain dissatisfied at the end of their landlord’s complaint process.
The ombudsman said this rise in complaints was compounded by further increases following the publication of the coroner’s report on the tragic death of Awaab Ishak, which led to another “surge in enquiries and complaints” to the service.
It said the coroner’s findings were foreshadowed by the “seismic increase in severe maladministration findings” it has issued since 2021-22 which, in turn, led to the introduction of sensitivity assessments on its cases awaiting investigation.
It said that the cost of living crisis, actions to raise awareness of its service, economic pressures, the removal of the designated person rule and heightened media coverage are also expected to lead to more complaints during 2023-24.
The ombudsman said these volumes could become the new normal rather than a reaction to recent events. It said providing an alternative to the courts and ensuring that the most vulnerable residents are aware of the service is essential.
It said it wants to be ahead of this demand curve to both meet this increased need and reduce determination times over the year.
To meet the rising demand, the ombudsman said that it has introduced a new operating model improving efficiency, and the business plan it is consulting on sets out the resources required to “deliver timeliness, quality and impact”.
It said most of its activity in 2022-23 to date had been focused on delivering the “significant headcount expansion” required to meet the “unprecedented surge in demand” experienced during 2021-22.
And after forecasting increasing demand following the death of Awaab Ishak, it said its expansion plan will continue into 2023-24.
At the end of January, the ombudsman had appointed 196 permanent roles out of a total number of 225 vacancies, representing an expansion of 194 per cent on its headcount as at 31 March 2022.
Richard Blakeway, housing ombudsman, said: “Our first priority is to ensure we have the capacity to manage the increased demand for our service.
“Presently, every month we receive more casework than we have caseworkers available to investigate. But we have recruited to meet this unprecedented demand, as well as implementing efficiency improvements.
“While the climate for recruitment has been challenging, it is evident that many people from diverse backgrounds want to work at the Housing Ombudsman and deliver our vision.
“And while my team has worked exceptionally hard at managing the high volumes, we simply have not been able to deliver as many investigations as quickly as we would like, so during 2023-24, we will require more resources so that we can meet both demand and expectations.”
The business plan covers the second year of the ombudsman’s 2022-25 corporate plan, which aims to deliver an “independent, visible and proactive service” for social housing residents and landlords.
The ombudsman said its Centre for Learning, intended to promote fairness and service improvement for the benefit of all landlords and residents, will “take shape”, with the potential to extend redress to private tenants.
Preparing for legislative and regulatory changes
The ombudsman’s plan anticipates a year of further change for social landlords, with the Social Housing (Regulation) Bill expected to become legislation.
The bill – which aims to give the Regulator of Social Housing (RSH) greater powers, such as to inspect properties and fine social landlords – could also hand the ombudsman further tools in its armoury.
The ombudsman said the first of these is a new power to issue wider learning orders on individual complaints. This will allow the ombudsman to order remedies beyond the individual complaint to prevent other residents experiencing a repeat of the same problems.
The ombudsman said it will set out its approach in a further revision to its remedies guidance, published in October.
The bill also contains provisions to put the Complaint Handling Code on a statutory basis and gives the ombudsman a duty to monitor compliance against it.
It plans for this consultation during the coming year, with the expectation of a statutory go-live date at the start of 2024-25.
The ombudsman said it will also work to design its approach to monitoring code compliance and continue collaborating with the RSH as its new plans take shape.
It said that regulation and a policy direction will also create the Access to Information Scheme, which aims to increase transparency for housing association tenants, with the ombudsman acting as the appeals body.
The ombudsman will also broaden its engagement with the Building Safety Regulator, which is expected to start operating in the coming year.
Fees
The ombudsman said its original planning, based on a 30 per cent increase to 2022-23 case volumes, came to an expected chargeable fee of £4.74 per home, with a total budget equivalent to £5.59 per home. This is by offsetting the surplus arising this year from recruitment delays, it added.
However, the ombudsman said it expects the chargeable fee to increase because of revisiting and uplifting its demand assumptions following heightened media coverage of the sector and government actions to raise awareness of its service.
It expects the fee to rise to £5.90 per home, with a total budget equivalent to £6.75 per home, after applying the carried forward surplus.
The actual chargeable fee may reduce in its final 2023-24 business plan if it carries forward a greater surplus than currently forecasted, the ombudsman added.
The ombudsman said: “We recognise this is above the fee ceiling of £5.30, but the current circumstances are exceptional.
“We want to be prepared for higher demand and [to] significantly reduce waiting times for legacy cases in 2023-24; the higher fee will allow us to do both of those things.”
The consultation is open until 27 February 2023.
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