Service Charge Consultation Feedback April 2025

'New' service charges refer to existing services which have previously not been consistently charged for across our customer base. Some customers challenged the proposed introduction of 11 'new' service charges. Having considered customer feedback the following changes have been made:

• We’ve introduced a £20 per week cap to help limit the impact of any new service charge increases to customers. This means that Magenta Living will subsidise any increase above £20 for the 137 customers this applies to as we phase in the implementation of our new service charge approach.  
• Removal of the air conditioning maintenance charge from Neston Gardens, Vittoria Court and Knowsley Court. Further investigation has shown that this service relates to our CCTV server rooms and there is no material direct benefit to customers
• As detailed in the original consultation communication, for customers living in 4 high-rise buildings where major works are planned for financial year 2025/2026, we have off-set the new charges in full until April 2026. (Properties affected are Sunningdale, The Towers, Liscard House and Brackendale)The other new charges will remain in place as these relate to essential services required to keep our customers safe and secure in their homes.
• We have reduced the service charge for CCTV security following a review of the service.

Some customers have challenged the introduction of a management fee.

• This fee has been introduced to cover the cost of administering service charges and is in line with sector norms and will remain in place.

Some customers have questioned specific service charges and whether they are required.

• We have responded to all individual enquiries, checking and confirming the requirement for the services offered.

Some customers have challenged whether they benefit from the services delivered and whether they should be charged for these services.

• All enquiries have been investigated, Where during the consultation process we have been provided with evidence that a customer does not benefit from a service, we will not proceed with that charge.

Changes include:

• Removal of air conditioning charge from Neston Gardens, Vittoria Court and Knowsley Court
• Reduction in communal electricity costs at Vittoria Court, to ensure this does not include on-site office provision and to allow time to resolve a billing issues with the heating supplier.
• Removal of communal heating charge for Neston Gardens for the year 2025/26 for further investigations to take place prior to implementing a charge in 2026/27
• Reduction in heating costs for Knowsley Court

Some customers have expressed concerns about their ability to afford the new charges and are seeking assistance or reconsideration of the charges. We understand the strain money worries can have on everyone. We are committed to ensuring all our customers can access the help and support they need all year round to reduce the impact of the cost of living and feel safe and secure throughout a tenancy with us. From your feedback we have strengthened our financial inclusion support:

• The Magenta Living Rent Relief Fund has been increased to £189k. Customers in financial hardship will be prioritised and we will proactively contact those most impacted to offer this support
• Our Financial Inclusion Team will focus on supporting customers during the transition period. The team have specialist skills and experience to help people claim benefits and grants
• We will continue to provide support for fuel & energy costs to ensure people can continue to heat and fuel their homes
• 645 customers will pay less than they did in 24/25 as a result of this review

Some customers have requested detailed breakdowns and explanations of the charges, including how they were calculated.

• We have responded to all individual enquiries, offering additional detail where this has been requested.

Some customers have reported that proposed charges have been applied inconsistently, with some customers being charged for services that others are not.

• We have responded to all individual enquiries, offering additional detail where appropriate.

Some customers have referenced previous (non-contractual) agreements that they believe protect them from any additional charges.

• We have taken onboard all your feedback and checked from a legal point of view to ensure that all proposed charges are eligible to apply.

Some customers have questioned the quality and frequency of the services provided and whether these justify the charges.

• All reported issues will be investigated.
• To provide additional assurance to customers on the services they receive and we plan to extend the Block Champion initiative with ‘Block Walkabouts’ and additional quality assurance activities.

Some customers have expressed dissatisfaction with the way in which we have communicated the changes, including both the presentation of information and the timeframe over the Christmas period.

• Customer feedback is very important to us, and we wanted to provide as much time as possible for your comments, prior to the proposed service charges coming in from April.
• As a result of this feedback our rent & service charge notification letter has been redesigned to ensure it is easy to understand with clear reference to the help and support available for anyone struggling financially or who has questions about their bill.

Some customers have said that they have never paid these charges before and are questioning why they are being introduced now.

• We have responded to all enquiries, confirming that the proposals are built on the principles of fairness, transparency and consistency across our customer base.

Some customers questioned why some services are not delivered by the Council and therefore are not covered by their Council Tax.

• We have responded to all enquiries providing clarification on our responsibilities versus those of the Council.

Some customers have requested meetings to discuss the charges in more detail.

• We will meet with all customers who have requested a face-to-face meeting.