Schedule 9: The New Homes Ombudsman scheme
Effect
- This schedule sets the requirements of the New Homes Ombudsman scheme by outlining the provisions that the New Homes Ombudsman scheme must include, and the forms of redress the New Homes Ombudsman scheme can specify. It also contains further provision about the New Homes Ombudsman scheme, for instance allowing the scheme to provide for different categories of members.
- The scheme requirements must include matters such as the appointment of the New Homes Ombudsman, and how to become and remain a member. The process of becoming a member may include the payment of member fees and the provision of information, and a requirement for members of the scheme to have their own procedures for the handling and resolution of complaints (and a requirement to publish those procedures). The scheme may include different requirements for different categories of member, including as regards fees. If the scheme is maintained by the Secretary of State or by a person acting on their behalf, the fees may be calculated in relation to the cost incurred in operating the scheme as a whole. If the scheme is maintained by a third-party provider, fees may be set at a higher level to enable a profit to be made by the scheme operator.
- The scheme must set out the matters about which complaints can be made, and the procedure for making complaints. The scheme may allow complaints relating to non-compliance with a code of practice and must require the New Homes Ombudsman to have regard to any code of practice approved or issued under section 142 when determining complaints. A fee must not be required to make a complaint against a member of the scheme. The procedure for making complaints may differ between categories of members and may include the use of a scheme member’s internal complaints handling procedure.
- The scheme must include provision about investigating and determining complaints. This must include provision requiring the New Homes Ombudsman to have regard to any code of practice approved or issued under section 142 when determining a complaint, a requirement of members to provide information, and for the New Homes Ombudsman to require members of the scheme to resolve complaints through one or more of the forms of redress listed in this schedule.
- The scheme must include provision about how it will enforce determinations made by the New Homes Ombudsman, which may include provision for the expulsion of a member of the scheme, provided that in such instances it also sets out the circumstances in which an expelled member may re-join the scheme.
- The scheme must allow for the New Homes Ombudsman to make recommendations, where widespread unacceptable standards of conduct or standards of quality of work are identified amongst members of the scheme, about changes that members may make in order to improve those standards. The scheme must include how it accepts and handles complaints transferred from a predecessor New Homes Ombudsman scheme where that predecessor scheme no longer exists.
- The scheme must also set out how complaints can be made against the New Homes Ombudsman scheme itself, how a third party scheme provides information to the Secretary of State, the Scottish and Welsh Ministers and the relevant Northern Ireland department, and how the New Homes Ombudsman scheme reports its activity. The relevant Northern Ireland department is the department of the Northern Ireland Executive designated by the First Minister and deputy First Minister in Northern Ireland, acting jointly.
- Where jurisdiction falls to more than one redress scheme, the scheme may include provision about co-operation with persons exercising functions under other redress schemes. In particular, the scheme may include provision about working jointly with a person exercising functions under another redress scheme, including the making of joint determinations with another independent person under another redress scheme.
Background
- These are new provisions.
Example
The New Homes Ombudsman scheme will be required to include details about the scheme in a number of areas so that it is clear what the scheme does and how it operates, and to ensure that the scheme is effective and can carry out the functions required. Any proposals to administer the New Homes Ombudsman scheme would be required, at the very least, to meet requirements set out under this schedule.
These requirements are intended to help consumers know how to access the scheme and how complaints will be handled, including when the New Homes Ombudsman must have regard to a code of practice and what determinations the New Homes Ombudsman can make to resolve issues, such as the award of compensation. The scheme may enforce determinations through expulsion of members of the New Homes Ombudsman scheme, which provides an incentive to comply with determinations made by the New Homes Ombudsman.
The schedule sets out the requirement that the scheme must make provision as to how information is provided to the Secretary of State, the Scottish and Welsh Ministers and the relevant Northern Ireland department when the scheme is not run by the UK Government, and the reports that it makes, which could be annual reports or case reports to highlight and recommend improvements. The scheme may include further provision not set out in the schedule.
