The Committee for Employment and Social Security is introducing changes to the Capital Sums Policy for social housing tenants.
This policy sets out what will happen if a tenant comes into either a windfall or lump sum of money and how it will treat savings that have built up over time. Deputy Le Clerc, President of the
Committee for Employment and Social Security said:
"It is important that Housing has policies in place to make sure that social housing is reserved for people on low incomes who cannot reasonably afford to live in the private sector. The Capital Sums Policy is one of these tools. It sets out the levels of capital that a tenant can have before it affects the rent they are charged or their tenancy is reviewed."
The Capital Sums Policy enables tenants to save a set amount of money before anything changes for them - this is known as the 'nest egg' limits.
If a tenant has more capital than the relevant nest egg, and they are claiming a rent rebate, their rebate will stop and they will be charged standard weekly rent for a specified amount of time.
The revised policy now introduces upper capital limits. If a tenant has capital above the relevant upper capital limit, their tenancy will be reviewed. If the tenant is under 55 and it is calculated that they could afford to rent in the private sector for at least five years, they will be given notice to quit. If a tenant is over 55, they will be given notice to quit if they can rent privately for ten years.
Both the nest eggs and the upper capital limits are based on the number of people in the household. The current levels are set out in the table below:
| Household Size | Nest Egg | Upper Capital Limit |
| Single (one bed) | £10,660 | £31,980 |
| Single (two bed) | £13,000 | £39,000 |
| Couple (one bed) | £12,740 | £38,220 |
| Couple (two bed) | £15,080 | £45,240 |
| Family, one child | £16,900 | £50,700 |
| Family, two children | £21,580 | £64,740 |
| Family, three children or more | £23,400 | £70,200 |
| Severe disability benefit (per claimant) | Add £2,628.08 | Add £7,884.24 |
Deputy Le Clerc said:
"Housing's Capital Sums Policy has been in place since 2015. The main change the Committee has agreed in this revised version is the introduction of 'Upper Capital Limits'. These upper limits are to the advantage of tenants as they allow them to remain in social housing with a higher level of capital. From now on, it is only if they have capital above their household upper capital limit that their tenancy is reviewed. Previously their tenancy was reviewed if they had capital above their relevant nest egg - a much lower figure."
"We have made sure that a tenant is only asked to leave social housing if we're confident they can afford to rent a property in the private sector for an agreed period of time. We have written to all tenants informing them of this policy change and have advised them what to do next but if anyone has any questions on this policy, or whether they are affected by these changes, please contact the staff at Housing."
The revised policy and a Frequently Asked Questions document can be downloaded from www.gov.gg/tenancymanagement. If a tenant has any queries in relation to this policy change and how it affects them please email: tenancymanagement@gov.gg or telephone 717262.
