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1.Statement of Intent

1.1 We aim to provide the highest standards of service at all times to all of our residents and customers.  However, we recognise that there may be times when residents or customers may suffer some disadvantage or loss as a result of our actions, errors or mistakes and that in some instances compensation may be the most appropriate form or remedy.

• This Policy outlines the circumstances under which compensation will and will not be considered and the principles covering any such determinations.
• This Policy provides a consistent basis for assessment of the loss and/or costs incurred when compensation is sought.

1.2 This Policy ensures that we meet our regulatory and statutory obligations to ensure that residents, housing applicants and others have ready access to an effective Compensation Policy, which is administered efficiently.  We will apply this Policy in conjunction with the Compensation Procedure that has been produced to support this policy.

1.3 This Policy does not replace our legal liabilities arising from public liability claims which are covered by our insurance policies.

2. Overarching Principles Applied

2.1 We will adopt an evidence based approach and will generally not make any compensatory awards based “on the balance of probability”

2.2 We will consider payment of compensation in the following circumstances:

• Where we have a statutory obligation e.g. Home Loss, Payment for Improvements.
• Where there has been a failure to meet agreed standards of service, laid out in our policy documents, which have resulted in considerable inconvenience.
• Where damage to property or belongings has been caused by the direct action or inaction of us (subject to prior knowledge).
• Where a resident has lost the use of part of their home and where we are responsible.

2.3 We will not consider payment of compensation in the following circumstances:

• Where loss or damage has been caused by a resident, family or a visitor to the premises.
• Where maintenance employees or contractors have been unable to gain access to carry out a repair in the designated timescale or where service failure is the result of extreme or unforeseen conditions (such as weather conditions) but where we have taken all reasonable steps to restore services or facilities under the prevailing conditions.
• Where a resident’s possessions are lost, stolen, broken or damaged through no fault of ours as in for example, cases where damage has been caused by floods, fire, leaks, etc.  Residents should ensure that they have home contents insurance to cover them in these circumstances.
• Where the loss has not been reported within a reasonable timescale.  Generally, the timescale will be within 28 calendar days of the incident occurring.
• Where improvement works or repair works to a property will unavoidably result in low levels of damage to property or belongings e.g. holes left in carpets, other floor coverings or ceilings as a result of installing new radiator pipes, fitted carpets having to be taken up etc.
• Where compensation is being sought for repair or accidental damage to any resident improvements that have not been approved by us i.e. laminate or natural wood floor coverings, the install or removal of internal doors etc.
• Where a re-arranged appointment or need to undertake a follow-on appointment could not have been anticipated and results in a resident having to take time-off of work to allow access resulting in loss of earnings or leave entitlement.

3. Policy Outline

3.1 The overarching principles applied under this policy are:

• In the first instance, we or our contractors will seek to make good any damage for which it was clearly responsible for.
• Each claim will be considered on an individual basis taking into account all relevant known facts and supporting evidence supplied e.g. invoices, receipts etc.
• Any offers of compensation will depend upon the circumstances of each case and will be linked to the extent of loss or damage caused or to any fixed payable amounts as defined in the Compensation Policy and Procedure.
• If we and the claimant differ on facts and interpretation we will try to reach an agreement with the claimant but the final decision will rest with us.
• We reserve the right to make compensation payments directly into a claimant’s rent account in cases where the claimant may owe money to us e.g. rent arrears. However, we recognise that in some circumstances, where the claimant has incurred additional ‘out of pocket’ expenses as a direct result of our actions or inactions, we will forego offsetting payment against monies owed to us. Each case will be assessed on merit.
• Other forms of compensation other than monetary awards may be offered where this is deemed more appropriate such as decorating vouchers in a claim where damage to décor has been agreed.
• In some circumstances discretionary payments or “goodwill gestures” may be made by the Service Manager.  Such discretionary payments will generally be of low value and along with goodwill gestures may take the form of a bouquet of flowers, box of chocolates, vouchers or be delivered in the form of additional or extra work package.  Any such payment or gesture does not imply any acceptance of liability on our part.
• Where a resident is claiming compensation as a result of poor service provision the claim must be accompanied by the submission of a formal complaint.
• In the event that one of our contractors or representatives has caused damage, the resident is at liberty to seek compensation either by direct contact with the contractor or via us if not satisfied with the response received from the contractor or representative either through our Resident Liaison Officers or by using our Complaints Procedure.
• All offers of compensation are made without prejudice which means that the offer of compensation cannot be relied upon as proof of liability.  If an offer of compensation is accepted, then the payment is made in full and final settlement of the claim for compensation against us.

3.2 Claims for compensation should be made in writing, where possible by completing a compensation claim form.  Claim forms can be requested from us directly or by downloading from our website:  www.fairhive.co.uk

4. Policy Implementation

4.1 This policy will be implemented throughout the organisation.  We will ensure that the Compensation Policy and Procedure are well publicised both internally and externally.

4.2 Each of our service areas are responsible for considering compensation claims that fall within their area or responsibility and for determining any awards that may be made based on the application of this Policy and the supporting Compensation Procedure.  The supporting Procedure also contains an appeals process in instances where the claimant is not satisfied with our initial determination.

4.3 In compensation claims where a personal injury or accident claim is being made; these will be directed to our insurance company and dealt with outside of this Policy and Procedure. 

5. Monitoring and Review

5.1 We have an internal framework for regularly analysing and reporting on compensation claims.Compensation levels arising from complaints are regularly reviewed and the results reported to Senior Management and the Board.

5.2 Compensation payments or goodwill gestures made in association with formal complaints will be logged and used to help improve performance going forward.

5.3 Compensation award levels as well as standardised amounts will continue to be scrutinised to ensure that they are reasonable and proportionate to the distress and inconvenience experienced.

5.4 An annual compensation budget is set and every effort made to manage compensation payments within that budget.

5.5 This Policy will be reviewed every three years, unless amendment is prompted by a change in legislation, operational requirements or market forces.

6. Impacts

Resident/Staff  Implications - 

This Policy and the supporting Procedure have been subjected to review by Service Managers, Senior Management Team and the Executive Management Team.

The Residents Forum has also been consulted on this Policy and supporting Procedure.

This Policy and Procedure have been drafted in line with our vision and values incorporating sector good practice and statutory guidelines.

Equality, Diversity & Inclusion - 

This policy will conform to all Equality and Diversity legislation and requirements set out by the Group’s Equality and Diversity Policy.

If a claimant wishes to receive information in a different format e.g. large print, on audio tape, an alternative language or requires the services of a translator, this can be facilitated.

Value for Money - 

We recognise that there will be occasions when customers may suffer some disadvantage or loss as a result of our action, errors or mistakes.  In some instances it may be appropriate to compensate, but residents will have no automatic right to compensation.  This Policy and supporting Procedure will ensure that the levels of any compensation made will be consistent and proportionate to particular circumstances.

In line with Value for Money principles we will not view compensation as a “quick fix” but will address the causes of actions and processes that give rise to potential compensation claims being made.

We are able to attach standardised compensatory amounts that can be applied consistently in certain circumstances for example; compensation for a missed appointment.  Such standardised amounts are applied wherever appropriate and are considered non-negotiable.

We do not operate a new for old policy.  Any compensation made in cases of damage to property or belongings will be based on the original cost of the items and depreciated over the life of the item.

Data Protection - 

All due care is taken to protect data held by us in line with our Data Protection Policy and data protection requirements.

Accountability - 

This Policy has been reviewed by the Residents Forum.

Quality - 

We look to ensure that our residents are safe in their homes by supporting the provision of well-maintained homes which are in line with legislative and regulatory requirements.

When things go wrong - 

Residents can communicate concerns through our formal channels.

7. Related legislation and other documents:

The Regulatory Framework makes it a requirement that customers, housing applicants and others have ready access to an effective Complaints and Compensation Policy, administered effectively.The Housing Ombudsman Service also shares this expectation.

Policy author details

Author	Faziela Dharsey
Job title	Performance Improvement Manager
Email	Faziela.dharsey@fairhive.co.uk
Date approved	November 2023
Review due date	November 2026