The Cost of Rent Increases

The 7.5% increase in public sector rents will add almost £1m to the social security budget.

Treasury Minister Dr Alex Allinson was questioned on what estimate has been made of the cost of the rise by David Ashford (Douglas North).

The DoI decided on a 7.5% increase in rents across the island following discussions with the 15 local housing authorities.

It said that the increase came ‘against a backdrop of rising costs for routine maintenance and planned improvement projects’.

While the increase will have to be met by tenants, those who have their rent paid by the gov will see their benefits reassessed to take account of the new rental costs.

Dr Allinson said: ‘The total increase in benefits expenditure arising from the 7.5% increase in public sector rents from the beginning of April 2024 is estimated to be £0.9m per annum.’

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