Group 7: Changes to permitted payments under the Renting Homes (Fees) Act (Wales) 2019 (Amendments 5, 6, 7)

Part of the debate – in the Senedd at 2:16 pm on 10 February 2021.

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Photo of Julie James Julie James Labour 2:16, 10 February 2021

Diolch, Llywydd. Firstly, I want to stress that these are charges for services that have been delivered and for which tenants have continued to make payments. Social housing providers are unaware of any tenant who has refused to make a payment on the basis that it was unlawful under the 2019 Act. For the most part, the amendment is simply regularising that which has already taken place. Furthermore, it's important to remember that a large proportion of the payments that have been made will have been covered by housing benefit or universal credit. If we did not make these changes retrospective, any repayment of service charges that landlords may consequently be required to make may well result in the suspension of benefit payments whilst a claim is reassessed. At worst, it could lead to demand for benefit payments to be repaid and for individuals to be transferred from housing benefit to potentially less favourable arrangements under universal credit. 

I also want to emphasise that there are a number of safeguards for tenants built into amendment 6. Currently, no-fault section 21 notices are invalid where prohibited payments have been made. The amendment requires that, even after the payments have been made lawful, any invalid section 21 notice previously issued would continue to be invalid. What is more, landlords who have levied a service charge during the period from 1 September 2019 to the coming into force of the amendment will be prohibited from issuing a section 21 notice for a further six months after the legislative change comes into force. This will allow the tenant time to understand the legal position and remedy any service charge arrears that may have occurred as a result of the retrospection. I also think it's worth pointing out that no tenant could be retrospectively charged for services for which no charge was levied during the period when this was prohibited. 

The other point the Member made is very straightforward, Llywydd. We are satisfied that this is within the legislative competence of the Senedd and the Welsh Government. Diolch.