Carpet loans for Andium tenants replaced with grants

Thursday 15 June 2023

Tenants moving into Andium accommodation between July and December will be provided grants – as opposed to loans – to pay for carpets in new rentals.

However, a related proposal to terminate outstanding loan payments for carpets – brought forward by Reform Jersey's Deputy Rob Ward – was rejected by States Members yesterday.

Social Security Minister Elaine Millar has also this week agreed to work with social housing providers to review their policy relating to the provision of flooring as standard in all properties and reuse carpets after cleaning.

During the debate, Deputy Ward said that grants used to be provided and that the change to special payment loans had been a "mistake".

"Income Support is designed to keep people on a basic level of living. This repayment of carpet loans puts them over the edge and they do go to charities. They live without carpets because they don't want to live with loans. It doesn't make any sense whatsoever. This will directly improve the lives of some people on this island. We're talking about real people, real families, real lives."

He added: "The figure for what it would cost is minimal. This is peanuts for Income Support. A very insignificant amount, however for the individuals involved, it is a very significant amount."

It comes after the Deputy Millar previously revealed that an estimated total 114 Andium tenants are currently repaying loans for the provision of carpets, totalling £108,000.

She explained that Andium provides homes on an unfurnished basis to save tenants from paying a security deposit to replace or renew damaged goods.

Pictured: In the debate, Deputy Rob Ward said that grants used to be provided and the switch to Special Payment loans had been a "mistake".

Deputy Elaine Millar explained that the new system, which will come into effect on 1 July, is a "short-term temporary proposition" while the review is completed.

However, she was "firmly opposed to any proposal [to terminate outstanding loans]. Terminating these loans would be unfair to those people who have already paid loans off and unfair to tenants who rent with a landlord other than Andium. I do not see any way to administer this part of the proposition fairly or as a sensible use of public money."

"These loans represent debts to the taxpayer. The Assembly should only cancel debts in extreme circumstances, otherwise we create a dangerous precedent and a real risk of jeopardising government finances where people all over the Island start to ask not to pay back debts that they are rightfully and lawfully due to government."

She could not agree that the financial implications of the proposition's third prong were "minimal" due to administrative costs and the "methods used for tracking loans."

Deputy Ward countered: "We cannot leave people in a situation which we know is wrong now because it is too much of an administrative burden."

Non-Andium tenants will continue to receive support through interest-free special payment loans.