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Issue details

Keystage and the treatment of Housing Benefit overpayments

Previous reports have highlighted the viability issues faced by Keystage in the provision of supported accommodation at the former Lord Lister hotel site in Hitchin. This had resulted in an Housing Benefit overpayment, estimated at around £920k.

Keystage had been seeking ways to make the service financially sustainable, including the involvement of another organisation which had the required registration status to receive higher levels of Housing Benefit payments.

One YMCA have been identified as a company that will take over the Keystage companies. If this is successful it will enable the ongoing provision in Hitchin, as well as other current Keystage provision (including in Luton).

The Council needs to resolve how it will treat the Housing Benefit overpayment, as this will affect whether the deal with One YMCA can progress.

Decision type: Key

Reason Key: Significant Expenditure or Savings;

Decision status: For Determination

Wards affected: Hitchin Priory;

Anticipated restriction: Fully exempt  - View reasons

Explanation of anticipated restriction:
This will be a Part 2 report as it contains exempt information relating to the financial and business affairs of the parties involved

Decision due: 22 Sep 2026 by Cabinet

Lead member: Executive Member - Regulatory, Executive Member - Resources

Lead director: Director - Regulatory, Director - Resources

Contact: Ian Couper, Director - Resources Email: ian.couper@north-herts.gov.uk Tel: 01462 474 243.

Agenda items

Documents

  • Keystage and the treatment of Housing Benefit overpayments