Part 2Regulation of Social Housing
Chapter 7Enforcement powers
Compensation
236Overview
This group of sections allows the regulator to award compensation to a victim of a failure on the part of a registered provider.
237Grounds for award
1
The regulator may require a registered provider to pay compensation if the regulator is satisfied that—
a
either of the following cases applies, and
b
the award of compensation is appropriate (whether or not as part of a response including other action).
2
Case 1 is where the registered provider has failed to meet a standard under section 193 or 194.
3
Case 2 is where the registered provider has given an undertaking under section 125 and failed to comply with it.
238Nature
1
Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.
2
But an award may be made only to—
a
a specified tenant of social housing provided by the registered provider,
b
each member of a specified class of tenants of social housing provided by the registered provider, or
c
each member of the class of tenants of social housing provided by the registered provider.
239Housing ombudsman compensation
1
The regulator may not award compensation to a person in respect of a matter if an ombudsman appointed by virtue of section 124 has awarded compensation to the person in respect of the matter.
2
But if compensation awarded by an ombudsman by virtue of section 124 has not been paid as required, the regulator may award compensation.
240Award
1
Compensation is awarded by the regulator giving notice (a “compensation notice”) to—
a
the registered provider, and
b
the person to be compensated.
2
The notice must specify—
a
the grounds on which the compensation is awarded,
b
the amount of the compensation,
c
the person to be compensated,
d
any interest or additional compensation which, by virtue of section 244(2), is payable in the event of late payment, and
e
a period within which it must be paid.
3
The notice may require the registered provider to publish information about the compensation award in a specified manner.
4
The notice must explain the effect of sections 244(1) and (3) and 245.
5
The Secretary of State—
a
shall make regulations about the period under subsection (2)(e),
b
may make other regulations about the form and content of a compensation notice, and
c
may make regulations about the manner in which a compensation notice is given.
241Impact
1
This section applies when the regulator is considering—
a
whether to award compensation, or
b
the amount of compensation to award.
2
The regulator must take account of any information available to it about the financial situation of the registered provider.
3
The regulator must consider the likely impact of the compensation on the registered provider’s ability to provide services.
4
In particular, the regulator must aim to avoid—
a
jeopardising the financial viability of the registered provider,
b
preventing the registered provider from honouring financial commitments, or
c
preventing the registered provider from taking action to remedy the matters on the grounds of which the compensation might be awarded.
242Warning
1
Before giving a compensation notice to a registered provider the regulator must give the provider a notice (a “pre-compensation warning”)—
a
specifying grounds on which the regulator thinks compensation could be awarded,
b
warning the provider that the regulator is considering awarding compensation to a specified person,
c
including any indication that the regulator is able to give of the likely amount of any compensation, and
d
explaining the effect of sections 243, 244(1) and (3) and 245.
2
Before giving a pre-compensation warning the regulator must consult the person appointed by virtue of section 124 as the ombudsman for the scheme of which the registered provider is a member.
3
If the regulator gives a pre-compensation warning it must send a copy to—
a
the HCA, and
b
any other persons it thinks appropriate.
4
For the purposes of subsection (3)(b) the regulator shall consider, in particular, any person who provided information as a result of which the pre-compensation warning is given.
5
A pre-compensation warning must—
a
refer to section 125 (voluntary undertaking), and
b
indicate whether or to what extent the regulator would accept a voluntary undertaking instead of, or in mitigation of, awarding compensation.
6
A pre-compensation warning may be combined with notice under one or more of sections 230, 248, 250 and 252.
243Representations
1
A pre-compensation warning must specify a period during which the registered provider may make representations to the regulator.
2
The period must—
a
be a period of at least 28 days, and
b
begin with the date on which the registered provider receives the pre-compensation warning.
3
Representations may address—
a
whether compensation should be awarded;
b
the amount of any compensation that may be awarded.
4
After the end of the period specified under subsection (1) the regulator shall—
a
consider any representations made, and
b
decide whether to award compensation.
244Enforcement
1
Compensation shall be treated as a debt owed to the person to whom it is awarded.
2
The Treasury may make regulations authorising the regulator—
a
to award interest on compensation not paid during the period specified under section 240(2)(e);
b
to award additional compensation where compensation is not paid during that period.
3
Interest and additional compensation shall be treated as compensation.
4
Regulations under subsection (2)(a) may provide for an interest rate to be—
a
set by a specified person, or
b
determined in accordance with the regulations.
245Appeal
A registered provider who is given a compensation notice may appeal to the High Court against—
a
the award of compensation,
b
its amount, or
c
both.