The Overview and Scrutiny Committee of Redbridge Council met on Wednesday, 14 January 2026, to discuss amendments to the Housing Allocations Policy and the Budget Strategy for 2026/27. Key decisions included the approval of significant changes to the Housing Allocations Policy, aimed at reducing temporary accommodation use and increasing fairness, and the noting of the Budget Strategy, which highlighted an increase in core spending power due to successful lobbying efforts.

Housing Allocations Policy Amendments

The committee extensively debated proposed amendments to the Housing Allocations Policy, which were subsequently approved. These changes aim to address the significant housing need in Redbridge and improve the allocation process.

• Maximising opportunities to reduce temporary accommodation: A key amendment will allow homeless households to retain a 'reasonable preference' on the housing register if they secure private rented accommodation. This is intended to incentivise moving out of temporary accommodation, with projections suggesting potential savings of £1.5 million by 2027/28. This change was supported by evidence from other local authorities where similar policies have led to a reduction in temporary accommodation use.
• Compliance with Government Code of Guidance: The policy will now comply with recent changes to the Homelessness Code of Guidance. This includes enabling households fleeing domestic abuse who are owed a main housing duty by another local authority but are resident in Redbridge to qualify for the housing register. Similarly, care-experienced young people who were looked after by authorities other than Redbridge will now qualify for the register.
• Simplifying categories and increasing transparency: The banding system for the housing register will be renamed from numerical bands (1-4) to alphabetical bands (A-D) to avoid confusion with temporary accommodation banding. Band A will now reflect those households most frequently rehoused, aiming to reduce re-banding requests. The requirement to maintain an 'Annual Lettings Plan' has been removed to provide greater transparency and focus on banding and waiting times.
• Increasing access for working families: The income threshold for households with children to qualify for the housing register has been increased from £49,000 to £79,000 per year. This aims to prevent families with multiple working adults, or those receiving benefits like PIP or carer's allowance, from being excluded due to combined incomes. The £49,000 threshold will remain for single-person households and childless couples.
• Gypsy and Traveller Allocations: A Local Lettings Plan for the Northview Caravan Site has been incorporated, establishing a transparent framework for allocating its 16 pitches. Priority will be given to those with identified needs, such as homelessness or vulnerability, and applicants must meet specific eligibility criteria, including a local connection or close family ties.

During the discussion, councillors raised concerns about the £79,000 income threshold, questioning its fairness in comparison to the average household income and its potential impact on the right to buy scheme. Officers explained that the figure was benchmarked against local market conditions and based on evidence of cases where higher earners were still struggling to find suitable private accommodation. Concerns were also raised about the potential for increased waiting times due to more people qualifying for the register, but officers argued that having more people on the register in private rented accommodation is less costly to the council than having them in temporary accommodation.

Budget Strategy 2026/27

The committee noted the Budget Strategy for 2026/27. Councillor V. Solanki, Cabinet Member for Finance, presented the strategy, highlighting the success of lobbying efforts which had resulted in an increase in the council's core spending power to £63 million over the next three years, totalling approximately £88 million. This was attributed to Redbridge being recognised as a high performing, low cost council.

The strategy includes a £40 million programme for service modernisation, aimed at improving resident experience, reducing failure demand (instances where services are inefficiently used), and increasing efficiency through technology and organisational design. Significant focus will also be placed on commissioning and third-party contracts to ensure value for money, particularly in areas like adult social care.

Discussions also touched upon:

• SEND Reforms and High Needs Deficits: The report referenced SEND reforms due in 2028 and high needs deficits. While Redbridge had previously avoided deficits in this area, it has now incurred one. The council is lobbying the government for clarity on how accumulated deficits will be handled.
• Overnight Accommodation Visitors Levy: The potential revenue from this levy was discussed, with concerns raised about it disproportionately benefiting inner London boroughs.
• Labour Cost Adjustment: The council is lobbying the government to address the labour cost adjustment, noting that Redbridge has lower rates than surrounding East London and Essex authorities, which disadvantages recruitment.
• Biodiversity Net Gain: This was explained as an offset on development, where the council will sell biodiversity credits to developers to generate income.
• Children Looked After Placements: Savings are anticipated from reducing high-cost children looked after placements, with assurances that this will be done sensitively and without increasing risk to children.

The committee noted the report, with further discussion on the budget strategy expected in future meetings.

Other Business

The committee also received updates from the Chairs of various Policy Development Committees (PDCs) and Sub-committees, covering areas such as Children and Young People, Health and Care, Homes and Neighbourhoods, and Education. The Overview and Scrutiny Work Plan was also noted, with an amendment to request an update on the latest CQC inspection in February. The meeting concluded with a motion to move into a private session to consider an exempt item.