Discretionary Compensation Policy

Document owner	Approved by	Effective date	Review date
Director - Property Services	Wolverhampton Homes Audit and Business Assurance Committee	TBC	TBC
Ian Gardner

 Document History

Version	Summary of changes	Document status	Date
V1.0	New Policy	Live	April 2021
V2.0	Policy Review	Draft	March 2025

 

1.0 Introduction and aims 

1.1   This policy supports Wolverhampton Homes (WH) governance and assurance framework, the Wolverhampton Homes Complaints Policy and our approach to creating positive customer experiences and outcomes.

1.2 WH is committed to consistently providing excellent services to all our our customers. However, we recognise that there are times when our service fails to meet the standards set by our board. If we fail to meet our own service standards or provide an unsatisfactory service, we aim to put things right as quickly as possible and this may involve paying compensation.

1.3  This policy aims to:

• Seek to resolve complaints to the satisfaction of the customer, by providing flexible and proportionate financial compensation, where appropriate
• Follow the Housing Ombudsman Guidance for Landlords, Compensation policy | Housing Ombudsman
• Mitigate the need for the customer having to resort to the Housing Ombudsman or Regulator of Social Housing (RSH) to seek a remedy
• Apply the offer of compensation fairly and with each individual case being considered on its own merit
• Apply discretion, while promoting consistency

1.4 Where a service failing or problem occurs, we will work with our customers put this right as soon as possible. All cases will be assigned to a member of our specialist Customer Resolutions Team (CRT) who will work with customers to resolve their complaint. Occasionally, the customer may have incurred avoidable significant inconvenience or may have incurred unnecessary costs as a result of the company’s service failure. This policy provides a framework for the company to make a without prejudice discretionary payment or ‘goodwill gesture’ to redress any negative impact on the customer and other occupants.

1.5 Discretionary Compensation and goodwill payments will normally only be made in exceptional circumstances and where significant inconvenience or financial detriment has been incurred. Discretionary Compensation or goodwill payments may also apply where there have been repeated service failures of a similar nature, that have caused frequent low-level inconvenience.

1.6 Swift intervention, effective rectification and a written apology for any service failures will be the principal methods of resolving customer complaints. We may also offer additional ‘in kind’ services as an alternative to financial redress, for example, undertaking additional decoration or minor repairs/works, that are not normally the Landlord’s responsibility to undertake

2.0 Purpose and scope

2.1 This policy sets out the grounds and basis upon which Discretionary Compensation may be awarded in relation to a service failure. In cases where our contractors or suppliers are found to be at fault, we will work with them on the customer’s behalf to identify solutions. This policy is applicable to all Wolverhampton Homes customers (including current or former tenants & housing applicants).

2.2 The policy does not apply to mandatory compensation, such as home loss or disturbance payments relating to improvement works.

2.3 Wolverhampton Homes aims to provide a high quality, consistent service in an open and accountable way that builds the trust and respect of all our customers. This includes putting things right and to issue reasonable levels of Discretionary Compensation as a result of a service failure.

2.4 The policy provides a framework that sets out the consistent, justifiable and transparent decision making process in circumstances where, without prejudice, discretionary payments or ‘goodwill gestures’ may be appropriate. 

3.0 Statement of intent

3.1  Identifying root causes, implementing preventative actions and reviewing effectiveness will ensure the organisation improves and shapes its services with our customers’ needs in mind. This approach also protects the company against reputational damage risk and the failure to meet its regulatory and legal obligations.

4.0 Discretionary compensation payments

4.1 Discretionary compensation or gesture of goodwill payments may be made where there is a serious or repeated service failure or damage to personal possessions, e.g. a broken ornament, scratched table, or a service failure that has led to small financial loss, e.g. additional energy use.

4.2 Relevant factors we may consider when deciding the overall amount of discretionary compensation include (this list is not exhaustive);

• Failure to comply with published service standards, such as poor or delayed complaint handling.
• Repeated failure to meet target response times
• Extended or unreasonable period of loss of use of part of their home
• Repeated failure to follow policy or procedure
• Failure to provide a chargeable service

4.3 The award of any discretionary payments does not prevent the customer from submitting a formal legal or negligence claim to Wolverhampton Homes and / or the City of Wolverhampton Council.

4.4 This policy does not affect any compensation awarded by the Housing Ombudsman.

4.5 Discretionary compensation or gesture of goodwill payments will not normally be considered where the loss or detriment is as result of;

• The fault of a third party not working on behalf of WH, e.g. utility provider or neighbouring resident
• Losses covered by a customers’ own home contents insurance
• A situation caused by the customer, e.g. neglect/lack of action or wilful damage, failing to keep appointments, or them not acting in a tenant like manner
• Customer is subject to Legal proceedings by Wolverhampton Homes and / or the City of Wolverhampton Council
• Due to circumstances beyond WH’s control e.g. severe weather, criminal activity, explosion, flood/leak, road traffic accident, etc
• Requests for repair or replacement of fixtures/fittings that are not the Landlord’s responsibility
• Where access, with reasonable notice, has not been provided by the customer
• Planned loss of amenity, e.g. water service, passenger lifts etc
• Legal fees from an unsuccessful disrepair or tribunal claim
• Claims for personal injury
• Loss of earnings or Leaseholders Rental Income.
• Inconvenience or loss of earnings arising from emergency or responsive repairs
• Claims for loss of earnings to permit access for repairs, improvements or servicing
• Where WH has not acted negligently or without good intent
• Where an insurance claim has submitted alleging loss or negligent act by WH or its contractors

4.6 Any discretionary compensation or ‘gesture of goodwill’ payment, including that awarded by the Housing Ombudsman, will be made by BACS transfer to the customers nominated bank account, unless the customer is in rent arrears of more than £500 when the payment will be set off against their rent account.

4.7 Where the customer has overdue sundry debts or enforcement action is in progress, no discretionary payments or ‘gesture of goodwill’ payments will be made, instead, the payment will be added to the rent account.

4.8 Any discretionary compensation awarded by the Housing Ombudsman will be adjusted to take into account any outstanding sundry debt.

4.9 The Board have delegated authority to officers to determine an appropriate level of discretionary or ‘gesture of goodwill’ payments. Payments should be supported with written evidence of financial loss or detriment where possible.

5.0 Roles and responsibilities

5.1 The Board, Senior Management and Senior Leadership Team all play a role in identifying dissatisfaction or service failure, but they would not be directly involved in the initial investigation. They will ensure that any learnings or insight from complaints, recommendations from the Housing Ombudsman and compliments are recorded and reviewed.

5.2 All Wolverhampton Homes colleagues are expected to take ownership of customer dissatisfaction from the first instance and must aim to provide services that do not result in customer complaints or service failure.

5.3 Formal complaints will be investigated in accordance with the Wolverhampton Homes Complaints Policy.

6.0       Interdependencies and related policy

-        Equality Act 2010

-        Home Loss and Disturbance Payments

-        Housing Ombudsman Service

-        Localism Act 2011

-        Regulator of Social Housing (RSH) Consumer Standards

-        Right to Compensation for Improvements

-        Right to Repair Regulations

-        Social Housing (Regulation) Act 2023

7.0 Equality impact assessment 

7.1 Wolverhampton Homes aims to provide a tailored approach and will consider any requests for a reasonable adjustment under the Equality Act 2010.

7.2 Any offer of discretionary compensation or ‘gesture of goodwill’ payment will be fairly assessed and with each individual case being considered on its own merit. The vulnerabilities of those affected will also be considered to establish if the level of payment should be adjusted to reflect any additional direct impact based on the personal circumstances of the customer, for example a service failure related to disability equipment being repaired causing additional severe inconvenience.

8.0 Exemptions

8.1 Wolverhampton Homes will make every effort to reduce inconvenience during repair works to customers’ homes and surrounding communal areas. Repairs/works may require several diagnostic visits and a number of days access to conclude the matter. We will keep customers informed and advise of likely timescales and the expected number of visits it may take to complete the necessary works.

8.2 Wolverhampton Homes will not automatically issue discretionary compensation payments. These payments will be made following receipt of a complaint and subsequent investigation of the complaint. Only where it is identified there has been a service failure will a discretionary compensation or ‘gesture of goodwill’ payment be considered.

9.0 Associated procedures - Compensation Levels

9.1 Awards of discretionary compensation may be allocated outside of the set limits detailed below, where deemed appropriate by the Housing Ombudsman or Service Director.

Theme	Considerations	Compensation Limit
Failure to meet a published service standard or commitment/ promise previously made to the customer	Wolverhampton Homes will typically apologise and do our best to put things right as soon as possible.We should be flexible to attempt to resolve the complaint without financial redress where possible, e.g. be flexible with appointments outside normal operating hours.If the complainant has been particularly inconvenienced or we have taken excessive time to rectify an issue, discretionary compensation may be offered.	£5 per day (delay) up to a maximum £50 per service failure
Goodwill Distress & serious inconvenience Poor communication Unreasonable delay with resolving complaint	Where the company has failed to deliver a satisfactory quality service(s) within the scope of the Tenancy Agreement or statute or has provided incorrect or misleading information.Goodwill gestures may be made on a discretionary basis in cases of severe inconvenience, hardship or minor making good.	Up to a maximum of £100 for Minor impact Up to a maximum of £200 for Major impact Up to a maximum of £300 for Severe impact
Loss of Amenity - Whole Property	Where all habitable rooms are unusable, due to a HHSRS Cat 1 hazard being present in each, alternative temporary accommodation will be provided. If no suitable accommodation can be provided, a rent credit (calculated daily) will be provided until the kitchen, bathroom and necessary number of bedrooms become serviceable.	Up to a maximum of four weeks rent
Loss of Amenity - necessary bedroom(s) and/or living room	Where a required habitable room cannot be used, the total number of habitable rooms (exc WC’s; hallway, stores) will be divided by the current rent. Compensation will then be paid as a percentage of habitable room(s) unavailable.	Up to a maximum reduction of 30% rent
Loss of Amenity - kitchen / access to cooking facilities	Where the kitchen cannot be safely used for more than 24hours, due to a HHSRS Cat 1 hazard being present, WH will consider paying an allowance to contribute towards the cost of meals and drinking water.	Up to a maximum daily contribution, not exceeding 30% of the daily rent charge.
Loss of Amenity - loss of washing / bathing facilities	Where the bathroom cannot be safely used for more than 24hours, due to a HHSRS Cat 1 hazard being present, WH will consider paying an allowance to contribute towards the cost of travel and entry to alternative bathing facilities, i.e. leisure centre.WH will provide alternative toilet provision to ensure at least one toilet is available overnight. This may be a mobile or temporary toilet (suitable for the residents vulnerabilities). No compensation will be payable for the period of using alternative temporary toilet facilities.	Up to a maximum daily contribution, not exceeding 30% of the daily rent charge.
Loss of Amenity - loss of electricity	Where the electricity supply to lighting or power sockets is not available to all floors (full loss) or a floor (partial loss).No compensation will be payable for any service disruption outside of WH control, e.g. metering, billing, local power cuts, etc.	Remedy exceeding one working day – Full loss - £10 per day, partial loss £5 per day.
Loss of Amenity - loss of heating and / or hot water (1 November - 30 April)	Where the entire heating system is inoperable, or where no hot water is available.No compensation will be payable for any service disruption outside of WH control, e.g. metering, billing, local power cuts or for individual rooms only that may be affected.	Remedy exceeding one working day - £10 per day.
Loss of  Amenity - loss of heating and / or hot water (1 May - 31 October)	Where no hot water is available throughout the property.No compensation will be payable for any service disruption outside of WH control, e.g. metering, billing, local power cuts or for individual rooms only that may be affected.No compensation for loss of heating will be payable, unless the vulnerability of the tenant indicates significant inconvenience or impact, e.g. minimum temperature levels due to a medical condition and/or treatment.	Remedy exceeding three working days - £5 per day.
Failure to provide a service which is subject to a service charge	No compensation will be payable where a reasonable alternative arrangement(s) to provide the service have been provided, e.g. alternative cleaning or grounds maintenance rota, or where facilities have only been partially affected.	If we fail to provide all elements of the service charged, compensation will be the amount equivalent to the cost charged for the service they did not receive. The amount will be deducted from the next years charges and this will be provided to all those affected and not only any complainant.Compensation payments will not be made to individual households, as an alternative to the future years’ credit/ adjustment.