Curo has held a workshop to gather feedback from customers on how we should prioritise our spending on residents’ homes as costs rise.
If you couldn’t come to the workshop, you can give us your feedback by taking this short survey.
Inflation is currently high because of the rise in energy prices, driven by the war in Ukraine, and the long-term effects of the pandemic, including increased wage costs.
Over the past six years, Curo’s rent increases have not kept up with inflation. Now, with inflation standing at more than 10%, we’re seeing a big increase in our costs. However, our rent increases, which are set by the Government, are predicted to be capped lower than inflation.
“This means that we have some difficult choices to make as an organisation. We need your help to make them,” Ian Sheppard, Director of Financial Services at Curo, told residents at the workshop on 1 November.
Social rents
Social rents are Curo’s biggest source of revenue. On average, our social rents are £108 per week. This is 64% lower than private rents.
Curo’s rent increases are set by a Government formula. Over the past six years these have not kept up with inflation.
The Government is now looking at capping rent increases below the rate of inflation, with a decision expected in November.
We agree with the decision not to increase rents in line with inflation, as doing so could cause our customers financial difficulty.
However, the downside is that the increase in Curo’s income through rents will not match the increase in our costs as a business, for example the price of materials and services.
This is why we’re asking for customers’ input on how we should prioritise our spending. There is no right or wrong answer to this question, as all of our services are important, but we think that residents' priorities have probably changed in the last year.
Service charges
Service charges are the costs of services such as cleaning and maintenance to shared spaces that are passed on to customers. We don’t make a profit on service charges.
The rise in the cost of living, particularly energy costs, means that service charges are going up.
Curo is budgeting for an increase of £1.5m – or 25% – in costs for 2023/24.
Customer feedback
“At the first rent workshop, customers told us that they want Curo to clearly and simply communicate with them about rent and service charge setting,” said Sarah Seeger, Director of Policy. “They want to know what services they are getting and when they are being carried out.
“We’re also seeing that customers are increasingly prioritising the energy efficiency and insulation of their homes.
“Feedback from the workshop and survey will now feed into our financial plans for the future as we map out how to spend our income in 2023/24.”