Compensation

50OGrounds for award

1

The Welsh Ministers may require a registered social landlord to pay compensation if they are satisfied that—

a

either of the following cases applies, and

b

the award of compensation is appropriate (whether or not as part of a response including other action).

2

Case 1 is where the registered social landlord has failed to meet a standard under section 33A.

3

Case 2 is where the registered social landlord has given an undertaking under section 6A and failed to comply with it.

50PPersons to whom compensation may be awarded

Compensation in respect of a failure may be awarded to one or more persons who have suffered as a result of the failure.

50QAward

1

Compensation is awarded by the Welsh Ministers giving notice (a “compensation notice”) to—

a

the registered social landlord, and

b

the person to be compensated.

2

The notice must specify—

a

the grounds on which the compensation is awarded,

b

the amount of the compensation,

c

the person to be compensated,

d

a period within which it must be paid, and

e

any interest or additional compensation which, by virtue of section 50U(2), is payable in the event of late payment.

3

The notice may require the registered social landlord to publish information about the compensation award in a specified manner.

4

The notice must explain the effect of sections 50U(1) and (3) and 50V.

50RImpact

1

This section applies when the Welsh Ministers are considering—

a

whether to award compensation, or

b

the amount of compensation to award.

2

The Welsh Ministers must take account of any information available to them about the financial situation of the registered social landlord.

3

The Welsh Ministers must consider the likely impact of the compensation on the registered social landlord’s ability to provide services.

4

In particular, the Welsh Minsters must aim to avoid—

a

jeopardising the financial viability of the registered social landlord,

b

preventing the registered social landlord from honouring financial commitments, or

c

preventing the registered social landlord from taking action to remedy the matters on the grounds of which the compensation might be awarded.

50SWarning

1

Before giving a compensation notice to a registered social landlord the Welsh Ministers must give the landlord a notice (a “pre-compensation warning”)—

a

specifying grounds on which the Welsh Ministers think compensation could be awarded,

b

warning the landlord that the Welsh Ministers are considering awarding compensation to a specified person,

c

including any indication that the Welsh Ministers are able to give of the likely amount of any compensation, and

d

explaining the effect of sections 50T, 50U(1) and (3) and 50V.

2

Before giving a pre-compensation warning the Welsh Ministers must consult the Public Services Ombudsman for Wales.

3

The Welsh Ministers must send a copy of a pre-compensation warning to any person they think appropriate (having regard, in particular, to any person who provided information as a result of which the pre-compensation warning is given).

4

A pre-compensation warning must—

a

refer to section 6A, and

b

indicate whether or to what extent the Welsh Ministers would accept a voluntary undertaking instead of, or in mitigation of, awarding compensation.

5

A pre-compensation warning may be combined with notice under one or more of the following—

a

section 50K,

b

paragraphs 15C, 15E and 15G of Schedule 1.

50TRepresentations

1

A pre-compensation warning must specify a period during which the registered social landlord may make representations to the Welsh Ministers.

2

The period must—

a

be a period of at least 28 days, and

b

begin with the date on which the registered social landlord receives the pre-compensation warning.

3

Representations may address—

a

whether compensation should be awarded;

b

the amount of any compensation that may be awarded.

4

After the end of the period specified under subsection (1) the Welsh Ministers must—

a

consider any representations made, and

b

decide whether to award compensation.

50UEnforcement

1

Compensation is to be treated as a debt owed to the person to whom it is awarded.

2

The Welsh Ministers may—

a

award interest on compensation not paid during the period specified under section 50Q(2)(d);

b

award additional compensation where compensation is not paid during that period.

3

Interest and additional compensation are to be treated as compensation.

50VAppeal

A registered social landlord who is given a compensation notice may appeal to the High Court against—

a

the award of compensation,

b

its amount, or

c

both.