Wigan Council targeted by claims companies

A document reviewed by the Confident Council Scrutiny Committee showed that the number of claims the council team were dealing with increased from 26 in the 2020/21 half year to 138 in the 2021/22 half year.

The councillor presenting this report to the committee explained that with such a large housing stock (over 20,000 council homes) and with a significant number of the properties being over 50 years old, issues can arise which could give rise to housing disrepair.

The reason given for so many claims being brought in recently though was connected to the increased number of new claims management companies operating in the area. They (almost in whole) account for the significant increase in claims received this quarter, the committee was told.

A spokesperson for Wigan Council said: “In recent years we have seen an increase in claim management companies in the borough and these organisations often provide ‘no win, no fee’ legal work.

“As a result of this, over the last two financial years, Wigan Council has seen an increase in the number of claims it has received.

“In response to this rise in claims, Wigan Council has been working hard to develop internal processes in order to prioritise this work and better target future maintenance so as to minimise the financial impact on the local authority.

“Additionally, we remain committed to ensuring that we can provide timely repairs where needed as part of our work to provide a high standard of housing to our tenants across the borough.”

There was an increase in cost for the council for maintenance work from £261,355 in the 2020/21 half year to £343,752 in the 21/22 half year.

This increase was expected, not due to increased claims, but due to the fact that this half year picks up the impact of bad weather which impacts on our roofs, flooding issues and external works.

Whilst planned maintenance mitigates against significant damage – such as gutter clearing, roof surveys and repairs this can not be avoided.