North Yorkshire Council Landlord Services – Compensation Policy DRAFT

Version	Development Stage	Descriptions	Key Changes Implemented
1	Initial Draft	Preliminary version of the policy document developed by the Service Improvement Team.	Baseline content created outlining the policy’s purpose, scope and initial provisions.
2	Internal Consultation and Tenant Engagement	Circulated for internal review, including legal and departmental stakeholders and involved tenant representatives for feedback.	Feedback received from legal services and relevant officers with comments documented. Tenant feedback collated.
3	Post-Consultation Review	Final draft prepared following internal consultation, legal review and tenant feedback.	Incorporated legal advice, officer feedback and tenant feedback – refined language, clarified elements of the policy and aligned with legal processes.

1. Introduction

This policy sets out the approach taken by North Yorkshire Council (the Council) in assessing the circumstances and the amount payable, for compensation to which tenants and leaseholders are entitled. It will provide a framework for the consideration, calculation and authorisation of compensation.

This policy should not be read in isolation. It should be read in conjunction with our Housing Complaints Policy, the Repairs Standard, the Lettable Standard, decant process, Decoration and Disturbance Policy and Disrepair Policy and any other associated agreements.  

The Policy aims to provide a clear framework for the council when dealing with compensation claims.

2. Scope

This policy covers situations in which the Council will consider compensation payments to its tenants, and where appropriate, leaseholders.

The Policy outlines the assessment criteria to be used in determining eligibility for compensation and those instances in which compensation will not be paid.

As per the Housing Ombudsman guidance, the policy sets out the circumstances in which compensation will be issued. This falls into three categories:

· Statutory Compensation

· Quantifiable Loss Payments

· Discretionary Payments

The policy also directs our approach to other remedial action and details the application, appeals and review process.

Payment of compensation under this policy is restricted to tenants and leaseholders of North Yorkshire Council in its role as a social housing landlord.

The Compensation Policy will be delivered within the resources of the Housing Revenue Account. All compensation payments to be determined within the dedicated budget.

3. Key Principles

North Yorkshire Council aims to provide a high-quality service for all tenants and leaseholders. While we strive to meet our standards consistently, we recognise that there may be occasions where expectations are not fully met, or where, despite no fault, compensation may still be appropriate.

The Policy will ensure that tenants and leaseholders are restored to the position they would have been in had the service failure not occurred. It will also ensure that compensation payments are fair and proportionate.

The principles of the policy are:

· To ensure a clear, fair and transparent approach to compensation for all tenants / leaseholders;

· To outline the degree of service failure that necessitates compensation;

• To make clear what actions tenants / leaseholders needed to have taken to be eligible for compensation;

· To clarify the process managers should take when dealing with a complaint or compensation claim.

North Yorkshire Council are guided by the Social Housing Act (Regulation) 2023 and the Consumer Standards and in this policy particularly, the key outcomes of:

· Fairness and Respect

· Information about Landlord Services

4. Associated Frameworks and Legal and Regulatory Compliance

We will ensure that we compensate out tenants/leaseholders in accordance with relevant legislation which includes, but is not limited to the following:

- Land Compensation Act 1973 (as amended)

- Home Loss Payments (Prescribed Amounts) (England) Regulations 2023

- Section 124 of the Housing Act 1988 and Sections 153A, 153B and 138C of the Housing Act 1985

- Section 99A and Part V of the Housing Act 1985 (the Right to Buy)

- The Secure Tenants of Local Housing Authorities (Right to Repair) Regulations 1994 (as amended)

- The Secure Tenants of Local Housing Authorities (Compensation for Improvements) Regulations 1994

- Section 92 Local Government Act 2000.

- Housing Ombudsman Guidance

5. Statutory Compensation

These are payments the Council is legally required to make with no discretion over the amounts. Examples include home loss and disturbance payments, payments under the Right to Repair scheme and payments for ‘qualifying improvements’ to a secure tenancy.

5.1 Home Loss Payments

Home loss payments are awarded to tenants who are required to permanently leave their home through no fault of their own, for example via a permanent decant or transfer move.

A lump sum payment (the prescribed flat rate) of £8,100 (on or after 1 October 2023), in line with the regulatory guidance will be paid to the tenant. In the case of a joint tenancy, the payment will be split between both tenants if requested. All payments will be authorised by the Head of Service for Landlord Services and Housing Management.

5.2 Disturbance Payments

Disturbance payments are made to tenants who are required by the Council to move out of their home, either temporarily or permanently, to allow for improvement, redevelopment, or demolition of the property. These payments are intended to cover the reasonable costs associated with moving, ensuring that tenants are not left out of pocket.

In cases of permanent displacement, disturbance payments may be made in addition to a home loss payment, which compensates for the loss of a home. However, tenants who do not qualify for a home loss payment, such as those with introductory tenancies or those who haven't met the one-year residence requirement may still be eligible for a disturbance payment

A lump sum payment may not reflect individual circumstances therefore we will seek to meet reasonable and appropriate expenses, including:

· Furniture removal;

·  A packing service for vulnerable tenants or tenants who have mobility restrictions;

· Lifting and refitting of carpets/flooring and curtains and/ or replacement if necessary;

· Disconnection and reconnection of electricity, gas, telephone, and fitted appliances;

· 3 months postal re-direction.

5.3 Right to Repair

Right to Repair compensation is covered by this policy under The Secure Tenants of Local Housing Authorities (Right to Repair) Regulations 1994

Compensation is payable where NYC, as a landlord has failed to complete a qualifying emergency or urgent repair within the prescribed timescales (Appendix B), and the tenant has provided reasonable access for the repair to be carried out, in line with the Right to Repair schedule.

Compensation is also payable where a council tenant is unable to use part of their home because repairs are required or are being undertaken.

To qualify under the Right to Repair scheme:

· The repair must be on the list of qualifying repairs (Appendix B).

· The cost of the repair must be less than £250.

· The tenant must have reported the repair and allowed access for it to be completed.

Compensation is set by legislation as follows:

· £10 if the repair is not completed within the required timescale.

· An additional £2 per day for each further day the repair remains outstanding.

· The maximum compensation payable for any one qualifying repair job is £50.

Each qualifying repair is treated as a separate job if it:

· Is listed individually in the qualifying repairs schedule, and

· Would have been raised as a separate repair order.

5.4 Right to Compensation for Improvements

Customers who are a secure tenant with the Council are entitled to compensation for certain improvements they have made, following a move from their property. When a customer, who is a secure tenant, following the end of their tenancy. To quality, tenants must:

· Have carried out a qualifying improvement to their property; and

· Have obtained the written consent of the Council before starting the work.

Tenants must provide receipts or invoices for the improvement and proof of permission from the Council. The maximum compensation payable is £3,000 per improvement, and no compensation is awarded if the calculated amount is less than £50.

Compensation is adjusted for wear and tear, or any defects related to the improvement at the end of the tenancy.

Compensation for improvements is calculated based on the notional life of the improvement, divided by the cost of the improvement, minus the number of years of notional life left.

For Example – Improvement costs of £500 and notional life of improvement are 10 years and the tenant has moved out after 2 years of the improvement being completed equates to £500/10 = £50 per year; 2 years = £100. £500 cost - £100 (for the 2 years) = £400 compensation being awarded.

Claims must be made in writing no later than 14 calendar days after the tenancy ends. Tenants are encouraged to submit claims up to 28 calendar days before the tenancy ends to allow for timely processing.

5.5 Quantifiable loss payments

These are payments given where the service failure has resulted in a measurable loss to the resident. Examples include increased heating bills due to disrepair, paying for alternative accommodation, cleaning costs, or repairs where NYC has failed to meet its obligations. Costs must be reasonable and evidenced.

If it is the first reporting of the incident or the complainant/claimant has not allowed the Council the opportunity to put things right prior to making the complaint/claim, then the claim is null and void.

Any such costs must be evidenced, have been reasonably incurred and proof of such loss be provided.

For the replacement of lost or damaged possessions, tenants will need to provide the following within 7 calendar days:

· Evidence of the damage to be viewed in situ by Housing Standards or Housing Management and Landlord Services.

· Proof of ownership and the value of the lost or damaged item. For example, photos, instruction booklets or receipts.

This policy is not intended to replace or compensate for the lack of contents Insurance. Where payment is due, it will be made at the current value, not the value the item was purchased at. It is the tenant’s responsibility to insure their possessions against accidental damage e.g. to address damage following flooding.

6. Discretionary Compensation

North Yorkshire Council may, on a case-by-case basis consider making a monetary payment as a gesture of goodwill where service delivery failings cause exceptional inconvenience. These are payments made to make right a matter or complaint where there is no legal obligation to do so.

This could include for incidents of:

· Poor complaint handling

· delays in providing a service e.g. in undertaking a repair

· failure to provide a service that has been charged for

· temporary loss of amenity

· failure to meet target response times linked to category of hazard

· prolonged loss of use of part of the property

· failure to follow policy and procedure

· unreasonable time taken to resolve a situation

The level of compensation offered under discretionary compensation will be determined on a case-by-case basis up to a maximum detailed in the table below; in determining it’s award the council will also give due regard to the Housing Ombudsman’s guidance for financial remedies which can be found here: Guidance on remedies | Housing Ombudsman.

Table: Maximum discretionary payment (£)

	Impact
Responsibility	None	Low	Medium	High
None	0	0	0	0
Partial	0	50	100	500
Full	0	75	250	750

Impact Definitions:

Low Impact: The complaint has been upheld but there has been no significant inconvenience or distress caused to the resident.

Medium Impact: Inconvenience and/or distress has clearly been caused because of a failure in service or there is a repeated failure of a low impact event which would amount to a medium impact on the resident.

High Impact: A serious failure in service which has resulted in a significant level of distress and/or inconvenience over a prolonged period of time or there have been an unacceptable number of attempts to resolve the complaint.

7. Assessment Process and Criteria

This policy is intended to provide general guidance only, and each complaint or individual claim for compensation will be considered based on individual circumstances, against the statutory and policy framework.

Managers should assess each claim in line with this policy and make a written offer of compensation, which is considered to be the final settlement offer of the matter and will not constitute an admission of legal liability.

If the tenant / leaseholder accepts the amount of compensation offered, they will be required to sign a disclaimer stipulating that they consider the complaint or claim as closed and have accepted the payment in full and final settlement of the claim.

If a tenant / leaseholder wishes to appeal the decision made regarding compensation they can do so in writing to the Head of Service within 28 calendar days of receiving an offer.

The criteria for assessing the categories of compensation are detailed within the policy and summarised in Appendix A.

In all cases the following factors will be considered:

· The severity of the issue, including time, trouble and inconvenience suffered, and whether this could be reasonably foreseeable by the Council.

· Whether any other remedies have been applied already e.g. the service failure has been resolved.

· Whether the issue could be reconciled in any other reasonable manner by the resident.

· Any evidenced costs that have been incurred.

· Vulnerabilities within the household, e.g. age, disability, risk of harm.

· Time taken to resolve the issue.

· Any council failure to follow policies and procedures. 

8.  Policy exclusions and when compensation will not be paid

There are situations where compensation payments will not be offered, these include but are not limited to the below examples. However, when assessing eligibility, tenants’ individual circumstances and any known vulnerabilities may be taken into account.

· the loss or damage is caused by you or made worse by your inaction. This includes failure to report a repair promptly or to keep an appointment.

· loss or damage was caused by another household member or visitor to their property.

· the problem or service failure has caused little or no issues for you.

· we could not gain access to your home to carry out the required work or you failed to cooperate with us.

· additional works are required, and we have kept you informed of these.

· we could not have foreseen the issue, and we have not been negligent.

· we acted reasonably to mitigate any loss or damage.

· the service or facility is unavailable because of vandalism, severe weather conditions or other actions outside of our control for example a pandemic or times of local or national disruption.

· damage is caused by circumstances beyond the Council’s control (e.g. through storm or flooding), includes service failure or damage that is the result of extreme or unforeseen conditions, such as extreme weather.

· evidence of the damage to goods or loss is not available or provided.

· the loss or damage arises from an alteration or repair to the property or its facilities which you have carried out or arranged yourself, such as an incorrectly installed shower or appliance.

· we have to remove/dismantle/damage a fixed item installed by yourself, with or without our approval, to access essential services - i.e. a bath panel to access a pipework leak.

· the loss or damage is the fault of another customer or neighbouring occupier; their leaking washing machine for example.

· the loss or damage is due to the acts or negligence of a third party, such as a contractor who is not acting on our behalf.

· the loss of supply of gas, electricity or water that is outside of the Council’s control, such as a failure by the utility provider.

· we have acted reasonably and complied with our legal and contractual liabilities.

· we have made, or offered, reasonable alternative arrangements, temporary accommodation for example.

· damage that should be covered under a resident’s contents insurance.

· personal possessions are lost, stolen or damaged through no fault of the Council or its contractors.

· where a claim is made for a service, you are not entitled to.

· Where you have started or previously concluded legal proceedings or instructed a Solicitor against the Council, we will not be responsible and compensation will not be payable for any legal costs you incur.

· we will not provide replacement on a new for old basis.

· claims for personal injury.

· claims for loss of income/time off work.

· loss of rental income.

9. Approval Scheme

In order to ensure that all offers of compensation are agreed in a consistent and fair manner all claims and offers will be documented using the tenant and leaseholder compensation claims form and signed off according to the authorisation scheme in Appendix C.

10. Other remedies

In general, other actions may be taken to remedy a complaint either separately from or in conjunction with an offer of compensation. These may include practical actions such as offering to undertake repairs or redecoration which would otherwise not be the Council’s responsibility. A flexible approach will be taken’ where possible, to considering different remedy solutions. These may include undertaking repairs or redecoration, for example.

11. Service Failures by Contractors

North Yorkshire Council expects all contractors and third-party service providers acting on its behalf to adhere to the principles outlined in this policy. In the event of service failure, such as delays, poor workmanship, or missed appointments, contractors are required to cooperate fully in resolving the issue and support the Council in delivering appropriate outcomes.

12. Claiming Compensation and Making a Complaint

If the claim for compensation is received as part of a complaint, then the complaints procedure timescales will apply. The Complaints Policy can be found here.

If a claim is received outside the complaint's procedure and via the phone, online via the Contact Us form, or in person at a local office, the normal Customer Service timeframes will apply.

13. Acceptance of Offers, Appeals & Reviews

Where an offer of compensation is made, the tenant or leaseholder will be invited to confirm their acceptance of the offer in writing. The claimant must sign a declaration confirming that the offer is accepted in full and final settlement of the complaint or claim. This agreement will be made on a 'without prejudice' basis, meaning it is offered without any admission of liability by the Council and cannot be referred to or relief upon in future legal proceedings if the offer is not accepted.

Where offers of compensation are accepted, payments will be made via BACS within 28 calendar days of receiving the signed declaration of acceptance.

If the claimant is not satisfied with the compensation offered, they may appeal the decision within 28 calendar days of the offer being issued. Appeals submitted after this period will generally not be considered. However, in exceptional circumstances, such as serious illness, bereavement, or other significant personal hardship, late appeals may be reviewed on a case-by-case basis.

When submitting an appeal, the claimant will be asked to specify what they believe to be an appropriate level of compensation, along with supporting reasons and any relevant evidence. The original offer will then be reviewed, and the outcome of the appeal will be communicated to the claimant within 28 calendar days.

 If an appeal is not received within 28 calendar days, the case will be closed, and no further correspondence regarding the compensation offer will be entered into. The offer for financial redress will remain valid for 28 calendar days from the date the offer was made. After this period, the offer will be withdrawn and considered no longer available.

14. Housing Ombudsman Findings

Compensation payments can be ordered by the Housing Ombudsman, these are known as ‘remedies’. When a complaint is escalated to the Housing Ombudsman Service, having exhausted the Council’s formal complaints process, the Council will pay compensation and/or carry out any works or follow action to comply with the Housing Ombudsman’s findings. This will be completed within the timescale set by the Housing Ombudsman’s Final Decision.

15. Insurance claims

If items of your property are damaged as a result of absent or sub-standard repairs, or negligence by the Council, you can make a claim against the Council’s insurer.

There is a separate process for dealing with such claims of negligence, public liability and insurance claims and these are outside the scope of this policy.

Tenants and leaseholders are expected to take out content's insurance, for which there are numerous insurance providers who offer low-cost schemes.

If a customer alleges negligence in some way, NYC reserves the right to refer the claim to its solicitors or insurers for investigation.

16. Performance Monitoring

North Yorkshire Council is committed to transparency, accountability, and continuous improvement in the delivery of its services. Performance in relation to the implementation of this policy will be monitored through the Housing Revenue Account Performance Framework.

To support effective oversight and continuous improvement, the Council will maintain a comprehensive Compensation Register. This register will capture key performance metrics, including the number of claims opened and closed, type of claims (e.g. missed appointment, service failure) and resolution times for each case and financial data such as the amount and date of any payments made.

This information will be used to monitor trends, ensure accountability, and inform service enhancements, in line with the Council’s commitment to transparency and compliance.

17. Communication and tenant's voice

A copy of this policy can be found on our website and can be requested in PDF format or hard copy. If you need this in a different format, please let us know and we will make all reasonable efforts to provide this.

The policy will regularly be promoted to tenants via our communication channels and performance will be reported to the overview and scrutiny committee and tenant panels on a regular basis and as requested.

18. Equalities Statement

North Yorkshire Council will ensure that this policy is applied fairly and consistently to all tenants and leaseholders. An equality assessment was carried out during the development of this policy. This concluded that the implementation of this policy will not have any negative impacts.

We recognise that in application of this policy that there is not one solution for all, each situation will be different, and different resolutions may be sought. We will take individual circumstances and diverse needs and vulnerabilities of our tenants with a range of solutions in mind – within the restrictions placed by relevant legislation.

19. Policy Review

This policy will undergo an initial review after one year, followed by a review every three years by the Service Improvement Team to ensure alignment with legislative, regulatory, and best practice developments. Where necessary, interim updates may be made outside of the scheduled review cycle to maintain the policy’s relevance, fairness, and effectiveness.

Note that The Home Loss Payments (Prescribed Amounts) (England) Regulations are liable to change every year which the Council will honour.

Last updated:

Approved:

Review Date:

20. Contact

For comments or complaints about a service or to request compensation please contact:

Insert contact details here

North Yorkshire Council is committed to treating all tenants fairly and respectfully when handling compensation reports. However, in rare cases where individuals pursue complaints in a way that is unreasonable, persistent, or intended to disrupt services rather than resolve genuine issues, the Council may take steps in line with its Unacceptable Complainant Behaviour Policy. This may include measures such as assigning a single point of contact to manage communication or limiting the frequency of contact. These actions are taken to ensure that resources remain focused on resolving legitimate concerns while maintaining a safe and respectful environment for staff and service users. Tenants will be informed of any such decisions and the reasons behind them, with the opportunity to appeal if appropriate.

Appendix A - Assessment criteria

	Maximum	Evidence Required	Sign Off
Home Loss -	8100 (subject to change in line with prescribed legislation)	As per statutory entitlement	Head of Service for Landlord Services and Housing Management
Disturbance	Case by case	Receipts /proof of purchase or quotes	In line with authorisation scheme (Appendix C)
Right to Repair	50	Timescales for completion of work against right to repair legislation	In line with authorisation scheme (Appendix C)
Improvements	3000	Receipts /proof of purchase	In line with authorisation scheme (Appendix C)
Quantifiable Loss	Case by case	- Evidence of damage viewed in situ by Housing Standards or Housing Management and Landlord Services. - Proof of ownership and value (e.g. receipts, manuals, photos)	In line with authorisation scheme (Appendix C)
Discretionary	750	Council’s complaint handling outcome, assessment of level of impact on tenant.	In line with authorisation scheme (Appendix C)

Appendix B - Right to Repair

Defect	Prescribed period (in working days)
Total loss of electric power	1
Partial loss of electric power	3
Unsafe power or lighting socket, or electrical fitting	1
Total loss of water supply	1
Partial loss of water supply	3
Total or partial loss of gas supply	1
Blocked flue to open fire or boiler	1
Total or partial loss of space or water heating between 31st October and 1st May	1
Total or partial loss of space or water heating between 30th April and 1st November	3
Blocked or leaking foul drain, soil stack, or (where there is no other working toilet in the dwelling-house) toilet pan	1
Toilet not flushing (where there is no other working toilet in the dwelling-house)	1
Blocked sink, bath or basin	3
Tap which cannot be turned	3
Leaking from water or heating pipe, tank or cistern	1
Leaking roof	7
Insecure external window, door or lock	1
Loose or detached banister or handrail	3
Rotten timber flooring or stair tread	3
Door entry phone not working	7
Mechanical extractor fan in internal kitchen or bathroom not working	7

Appendix C - Authorisation Scheme

Financial Remedy £	Sign off/ Approval Level
0-100	Investigating/ Lead Officer
101-500	Housing Manager/ Housing Standards Manager
501 - 1000	Head of Service
1001+	Assistant Director