Compensation policy

Compensation Policy

1. Introduction

This policy sets out One Manchester’s approach to managing compensation and aims to ensure One Manchester complies with all statutory and regulatory compensation obligations and provides an accountable and fair system for awarding compensation.

2. Purpose

One Manchester aims to provide a good service to all its customers and to resolve any issues before the need for a compensation payment arises. If services fail or fall below our published standards then One Manchester aim to put the matter right i.e. provide redress to restore a person to the position they would have been in had the service failure not occurred. There are a number of remedies available to put a situation right but in some circumstances financial compensation may be the only and appropriate form of redress.

This policy endeavours to:-

• ensure that payments are fair and reasonable
• recognise that each case should be considered on its individual merits
• ensure that discretion and common sense will be applied to all claims
• promote consistency
• ensure that responsibility will be taken for any detriment or damage caused to an individual or their property and belongings by any contractor working on One Manchester’s behalf.

3. Scope

This policy applies to all customers of One Manchester, users of One Manchester’s buildings, homes owned by One Manchester but not serviced by One Manchester and any individual or group affected by the services One Manchester provides.  
There are different types of compensation:

• Mandatory compensation.
• Quantifiable loss.
• Discretionary compensation.

Mandatory compensation

One Manchester will pay compensation where there is a legal or legislative requirement to do so. This would include circumstances such as home loss and disturbance payments, payments under the right to repair scheme, and improvements. Details of compensation for improvements is contained in Appendix 1.

Mandatory compensation will be paid directly to the customer.

Quantifiable loss compensation

Where a customer has incurred a quantifiable loss, and where One Manchester or their contractors are at fault, compensation will be paid for that loss. Examples of quantifiable loss include:

• having to pay for alternative accommodation or take away food.
• paying for cleaning.
• carrying out repairs where One Manchester has failed to meet its obligations.

For compensation to be paid, any such costs must have been reasonably incurred and evidence of such loss must be provided. Any claim relating to quantifiable loss must be raised within12 months of the loss being incurred.

Where appropriate, any award will take into account wear and tear and compensation will not be paid on a new for old basis.  

Payments for quantifiable loss will be paid directly to the customer.

Discretionary compensation

Where there has been a service failure which has caused delay, distress, or inconvenience One Manchester will consider making a discretionary compensation payment. A discretionary payment may be offered for:

• poor complaint handling.
• delays in providing a service e.g. in undertaking a repair.
• failure to provide a service that has been charged for.
• temporary loss of amenity.
• failure to meet target response times.
• loss of use of part of the property.
• failure to follow policy and procedure.
• unreasonable time taken to resolve a situation.

Discretionary compensation will be offset against any rent or service charge arrears except when arrears are in dispute, or the arrears are the subject of the complaint or the customer has incurred additional “out of pocket” expenses as a results of OM’s actions or inactions.

We recognise that each case needs to be considered on its individual merits and as such we may deal with a compensation request differently where individual circumstances apply.

When awarding discretionary compensation the complaint manager will identify factors to consider in deciding upon the appropriate award of compensation which could include the duration of the problem and extent or severity of the service failure.

• Minor disruption: A service failure with minimal impact and short in duration with minimal or no financial detriment to the customer.
• Moderate disruption: The customer has experienced moderate disruption or financial loss, or there have been repeated low impact service failures.
• Severe disruption: A serious service failure leading to significant financial, physical and/or emotional impact.

Further details on how discretionary compensation will be calculated can be found in section 5 of this policy.

4. How to make a compensation claim

All requests for compensation will be considered under One Manchester’s Complaints Policy and dealt with as a Stage One complaint.

A case manager will be assigned to investigate the circumstances surrounding the damage/loss and a formal response will be issued in line with the timescales for handling Stage One complaints.

Customers can raise a complaint and/or request compensation in several ways:

• by telephone or in person
• in writing by letter or email
• by completing the ‘contact us now’ online form on One Manchester’s website

If a customer would like some help to make a complaint, we can offer extra support and guidance. We will also make other reasonable adjustments to enable a customer to fully access the complaints process in consideration of their needs. We urge customers to contact us to discuss any support needs or reasonable adjustment requirements they may have with us.

Where a customer is requesting to be compensated for a quantifiable loss, the case manager may request copies or receipts/invoices. Where the facts are not in dispute consideration will be given to reimbursement without the need for the customer to make a claim.

Complaints should be raised no later than twelve months after the damage or loss has been incurred.  

All claims will be acknowledged as a Stage One complaint within five working days of receipt and responded to within 10 working days of acknowledgement unless further actions are required to take place before compensation can be considered.

5. How compensation is calculated

In assessing a complaint where compensation may be payable the following factors will be considered as to whether disruption has been minor, moderate or severe:

• Has the customer been adversely affected by One Manchester’s or their contractor’s actions or omissions?
• If a customer has been adversely affected, how and over what period of time?
• What other impact has there been on the customer e.g. distress or inconvenience, time and trouble?
• Does the customer or their family have any disabilities or vulnerabilities which meant that they were more adversely affected by One Manchester’s or our contractor’s failings?
• Is it possible to restore the customer to the position they would have been in but for the service failure?
• What does the customer want One Manchester to do to resolve their complaint?
• Is there an actual quantifiable financial loss – for example, has the customer incurred costs as a result of what happened, or not received payments that they should have?
• Did the customer’s actions or inactions, or those of a third party (for example a resident’s advocate), contribute to what happened in the case?
• Actions by the customer which either mitigated or contributed to financial loss, distress, inconvenience or unfair impact.
• What remedy would be proportionate, appropriate and reasonable in the circumstances of the case?

Other actions may be taken to remedy a complaint either separately from or in conjunction with an offer of compensation. These can include practical actions e.g. offering to undertake repairs or redecoration which would otherwise be a customer’s responsibility and gestures of goodwill.

6. Leaseholders and shared owners

If a leaseholder lets out their property, One Manchester will not consider compensation requests from the sub tenant,  nor will compensation be paid for any rent loss associated with the sub-tenancy.

Service charges paid for a specific service that One Manchester provide may be fully or partly refunded if that service failed to be provided or was not provided in full.

One Manchester will only consider discretionary compensation for missed appointments on communal repairs if the leaseholder has been specifically requested to be present and records support this.

If a leaseholder has purchased a new home directly from One Manchester and there is a failure to rectify defects that have been identified and/or confirmed as a defect within a reasonable time, compensation will be considered where One Manchester has been the source of the delays. If delays have been caused by builders or third parties compensation will not be paid.

7. Goodwill gestures

One Manchester Managers are empowered to make discretionary goodwill gestures such as a bunch of flowers or a small payment in recognition of special hardship where One Manchester are not at fault. Payments in these circumstances are not an admission of liability but are designed to restore good relations, even if a complaint has not been raised. The value for such gesture is a maximum of £40.00.

8. Ombudsman determinations

One Manchester will fully comply with any Ombudsman determination to pay compensation for maladministration or service failure.

9. Situations where compensation will not be considered

No compensation will be paid:-

• In cases where loss or damage is the result of misuse or neglect by customers or their visitors. 
• Where claims relate to fire, flood, storm or other accidents outside of One Manchester’s control.  
• In relation to personal injury.
• For damage or loss of items/property that would ordinarily be covered by a customer’s own contents / building insurance policy even if that policy is not in place.
• Where the fault/problem is caused by a third party not working on One Manchester’s behalf.
• Where the issue was caused because of negligence by the customer or their failure to comply with the terms of their tenancy or lease.
• Where there is, or has been, a payment ordered by a court or competent tribunal in respect of the same issue.
• Where repair work has damaged a customer’s decorations and One Manchester is unable to exactly match existing decorations when doing redecoration work.
• For loss of earnings. 
• For the cost of water or electricity used when completing repairs.

10. One Manchester insurance

One Manchester has comprehensive insurance in place for all their homes and also public liability insurance. Any claim against either of these policies will be forwarded to their insurer by staff, who will not accept liability.

11. Appeal

In accepting a compensation offer customers are acknowledging that their complaint is resolved, or any proposed actions will resolve the complaint, however this does not impact the customers right to involve the Housing Ombudsman if they remain dissatisfied with any part of the complaint resolution.

If a customer is dissatisfied with the level of compensation offered they will be asked to specify what they consider is an acceptable amount of compensation and their reasons for this. Following this the offer will be reviewed by the case manager who made the offer within 5 working days although it does not necessarily mean that any changes will be made to the initial offer where policy was applied correctly. If agreement on a compensatory amount is not reached the case will escalate and be considered under Stage Two of the Complaints Policy.  

A Senior Manager will investigate and provide a final response within 20 working days of the escalation date confirming the final amount of compensation being offered. Any offer made will remain valid for 3 months from the date of this response, after which it may be withdrawn, unless ordered by the Housing Ombudsman.

13. Payment

All compensation offers will be accompanied by a compensation acceptance form for the customer to complete and return. Unless agreed otherwise any direct payments of compensation will be made via BACS transfer within 28 days of receipt of the completed acceptance form.

A cheque payment can be arranged by request.

It is normal practice for One Manchester to clear any debts owed by the customer, including rent arrears, recharges and service charge debt, from any proposed payment unless the payment is a mandatory payment or to cover evidenced out of pocket expenses. Following the offset any balance will be paid direct to the customer.  

14. Method and approach

This policy should be read in conjunction with the Complaints Policy.  

15. Compensation Authorisation

16. Review

The policy will be reviewed every three years but the frequency may be amended depending on changes to associated policies such as the complaints policy or updated guidance from the Housing Ombudsman. One Manchester reserves the right to suspend this policy at any time.

17. Legislation

Equality Act 2010
Landlord and Tenant Act 1985
The Defective Premises Act 1972
The Homes (Fitness for Human Habitation) Act 2018
Data Protection Act 2018/General Data Protection Regulations 2016
Tenant Involvement and Empowerment Standard
Home Standard
Consumer Standards 2024
The Complaint Handling Code 2024

18. Associated Policies

Complaints Policy
Equality, Diversity and Inclusion Policy
Repairs Policy

Appendix 1 Compensation for improvements:  

Outside of One Manchester’s complaints process customers may be entitled to claim compensation for certain improvements they have made to their home at the end of their tenancy. Claims must be submitted at least 28 days before the tenancy ends. To claim compensation customers  must have fully complied with the following conditions:

• Obtained three quotes for the improvement and One Manchester agreed with the price and choice of contractor/s (if applicable).
• Obtained One Manchester’s written permission. 
• All building regulations and planning permission consents were obtained (if applicable) and fully complied with.
• The improvement was post inspected by One Manchester and was to an acceptable standard.

The amount of compensation will depend on the cost of the improvement and the quality, condition and age of the improvement. Customers can claim compensation for the cost of materials and employed labour but not for removable appliances, decoration or their own labour. The amount payable will be to a maximum of £3,000 for any one improvement but claims cannot be submitted for improvements that are £100 or less in value. The amount of compensation payable is calculated taking into account depreciation of the improvement using the formula C x (1 – Y/N) where:

C = cost of improvement work minus any grant or other funding
N = notional life of the improvement
Y = number of years starting on the date on which they improvement was completed and ending on the tenancy end date (part of a year shall be counted as a year)

Improvements that can be claimed for and their notional lives are:

One Manchester may make adjustments after the calculation, by making an offer above or below the cost, minus depreciation to reflect certain factors including:-

• if the deterioration in the quality of the improvement is greater than provided for in its notional life.
• if the quality is considered to be significantly high.  

In cases where a customer installs a measure that does not have a notional life defined above, One Manchester may be willing to consider compensation and will make an estimate of its notional life based on any product information available at that time.

Compensation will not be paid:-

• if the tenancy is ended as a result of possession proceedings (commenced or order granted); 
• if the home is abandoned; 
• if there was an ongoing breach of tenancy at tenancy end; 
• in cases of succession
• where the tenancy ends as a result of right to buy or acquire.  

Vacant possession must be provided before any compensation is paid.