Information about rent increases

We felt that it was important to be open with you about the reasons why we need to do this. We know that your costs are rising, and more people are receiving support from our One Money and Income teams. We always aim to keep rent as affordable as possible, but we need to balance this with the rising costs being incurred by One Manchester. 
  
We are facing a 15-20% rise in repairs costs, which is partly due to labour shortages and material price increases. We have also moved from a 10-year to a 5-year electrical testing cycle to ensure that you are safe in your home. All of this means that this year our repairs costs will increase by about £1.9m.  

To tackle the rising demand on repairs we have reviewed our spend on planned maintenance. We have increased our investment programmes and plan to spend an additional £6m this year compared to last year.  

At the same time as our current costs are increasing, we must also meet Government and Greater Manchester commitments to make our homes more sustainable and reduce carbon emissions by 2038. In addition, all our homes must have a Band C energy rating by 2030. We are investing in homes so that they will become warmer, easier to heat, and cheaper to run. During the next year we have increased our sustainability budget by £1m to work towards these commitments.  
  
As a not-for-profit organisation, we put all our income back into homes and services that support local communities. Without the rent increase, it’s likely that we would have to significantly reduce or slow down our plans to maintain and improve homes and provide much needed services in our neighbourhoods. 

Your new rent has been calculated by taking into account: 

• The details in your tenancy agreement 
• The rent increase formula set by legislation, which states that rent increases should be based on the Consumer Price Index (inflation) in September 2021, which was 3.1%, plus 1%. This means that your weekly rent has increased by 4.1%. 

What is CPI? 

• CPI – the Consumer Price Index – is a figure used to measure inflation. It reflects how much the price of common goods and services changes over time across the UK. 
• CPI is higher than last year because the cost of goods and services has increased more sharply than it has done in previous years.  
• As a result of this rise in CPI, the amount that rents can increase has also gone up. 
   

Your new service charge reflects the cost of providing services to your home and is based on the costs incurred by One Manchester in 2021, which have been increased in line with inflation. This is with the exception of communal heating recharges, which have been doubled for the coming year. You may be aware that gas supply costs have significantly increased in recent months and the result is that, following a difficult procurement exercise, our supplier has increased their charges fourfold.

As we invest all the money we generate into our properties and communities, you can see in our 2020-21 Annual Report how this money is spent. 
Annual Report | One Manchester 
 

Yes, if you receive the housing element of Universal Credit, you must let the Department for Work and Pension (DWP) know about the increase in your total weekly payment by updating your Journal on the day of the increase on Monday 4th April 2022. Do not update your Journal before this date because the DWP will not recalculate your entitlement with your new rent amount.

No, if you currently receive Housing Benefit directly into your rent account, the total weekly charge will be updated automatically. We’ll let Housing Benefit service know of the change and they will update the amount they pay us. 

However, if you have Housing Benefit paid into your bank account, please tell the benefits department about the change as soon as possible. It’s important that you let them know as soon as possible to avoid any underpayments which may lead to arrears on your rent account. You can contact Manchester City Council at benefit.enquiries@manchester.gov.uk
  

If you pay by Direct Debit, we’ll make the changes for you. In addition, you will receive a separate letter from Allpay to confirm your Direct Debit has been updated, so please check this letter. If you do not receive one or want us to double check your Direct Debit payment, email us at: incometeam@onemanchester.co.uk  

If you pay your own rent and pay by standing order or via online banking, please change the amount that has been set up to the new rent as soon as possible. You might want to consider changing your payments to Direct Debit as this can give you peace of mind knowing your rent is being paid on time.  

The bedroom tax shortfall or under occupation charge as it is also known will be 14% of the total rent if you have one spare bedroom, or 25% of the total rent if you have two or more spare bedrooms. If you pay this shortfall by Direct Debit, then we will amend this to the new amount. If this increase causes any financial difficulties, then please contact our income team at: incometeam@onemanchester.co.uk

Our priority is to support our customers to sustain their tenancies, and we want to help prevent rent arrears as much as you do. 

We have a dedicated One Money team who are fully trained to ensure you get the most out of your income and benefits. If you have other debts, they can help you by looking for the best solution for your situation and will work with you every step of the way to get you the best outcome possible. Their services are free, impartial and confidential. 

Please get in touch with them as early as possible if you need help to pay your rent and other debts. 

Email onemoney@onemanchester.co.uk or visit our website - Money & Benefits Advice | One Manchester - which has lots of helpful advice and links to other organisations that can help such as Citizens Advice Manchester.

Our Employment and Skills service is available for all our tenants to help improve their skills and chances of gaining employment. We offer one-one advice and guidance on employability, careers, volunteering and starting their own business, as well as being able to signpost to training and other specialist support required. Our drop-in and virtual sessions give tenants access to computers, printers and tailor-made support into employment or upskilling through training. We can support with CV writing, covering letters, application forms, interview techniques and much more. We offer in-person support or online via Teams, Zoom, or over the phone. We can support tenants who are in work but looking to increase the number of hours they work by offering an evening session to fit around their work commitments. We also offer the Be-Well service for tenants who have health conditions but want support to find employment. Our service is person-centred, and advisers will work with customers as needed.