400 new council homes earmarked for Wolverhampton

The news comes as thousands of current tenants are welcoming a one per cent cut in rents, but it means they will face a rise in costs for heating, concierge services and garage rents as the city council looks to find the money to pay for the new homes.

The measures are due to be approved at a cabinet meeting on Wednesday.

The homes will be an addition to the 65 houses currently being built in existing council projects.

The news follows a review of the council's business plan, prompted by Chancellor's Welfare Reform and Work Bill, which is currently passing through parliament.

The reduction has led to a restructure of the plan and has produced savings in the capital programme, which will be used to finance more new council homes.

However, though rents will be reduced, the charges for services including central heating, concierge services and garage rents will increase.

This means that up to 22,600 council tenants may have to pay double the cost for their gas central heating – paying £4 per week to the council – whereas those with electric heating will only have to pay £1.

Ann Guest MBE, chairman of the Wolverhampton Federation of Tenants Associations, said "I think it's absolutely disgraceful.

"I have no idea how the council hope to fund the building of these new houses. They're just not looking at the bigger picture.

"The council think that because we're just tenants that we're daft, but we aren't.

"Though people with gas heating will receive servicing for their money, doubling the amount they have to pay is ludicrous, especially as 71 per cent of council tenants are on benefits so do not pay anyway."

According to a report on the council website, the current £2 per week charge for central heating 'only provides half of the costs of servicing and replacing central heating systems'.

The double of the charges is to 'bring the central heating service charge in line with the other service charges and to make the charge cover the whole cost of the service'. The rent of garages will also increase by one per cent as will the concierge service.

"The council are giving us a reduction in one hand, and taking it away with the other" Mrs Guest added.

Councillor Peter Bilson, Deputy Leader and Cabinet Member for City Assets, said "To find the capacity to deliver this amount of extra council homes over the next four years is a major shot in the arm for Wolverhampton.

"One of our key priorities is also to increase the number of decent and affordable homes available in the city and these new council homes fit the bill."