Commentary on provisions of Act Housing ombudsman scheme Section 40: Housing ombudsman scheme
This section will ensure the housing ombudsman of a scheme approved by the Secretary of State under Schedule 2 to the HA 1996 is empowered to issue a code of practice on complaint handling and makes clear that the housing ombudsman of an approved scheme can issue orders that seek to prevent the recurrence of issues identified during an investigation by ordering a member to review its practice and/or policy.
	Subsection (2) amends paragraph 2 of Schedule 2 to the HA 1996 to add to the list of matters for which an approved scheme must provide to add, including to add the power for the housing ombudsman of an approved scheme to issue a code of practice on complaint handling which will inform members of the scheme of the complaint handling standards they are expected to maintain and will give the residents of those members a better idea of what to expect from their landlord.
	Subsection (2) also adds to those matters: a duty on a housing ombudsman issuing a code of practice to consult the members of that ombudsman’s scheme, individuals who may make complaints under the scheme (which will include residents of members of the scheme) and the regulator prior to issuing or making changes to that code (such a duty will provide a mechanism for the views of these individuals/organisations to be fed into any code issued under this power); and, a duty on a housing ombudsman to monitor compliance with a code of practice on complaint handling (if the Ombudsman of that scheme has issued one).
	Subsections (3) and (5) are intended to clarify that the costs of all the functions of a housing ombudsman scheme’s administrator and ombudsman can be recovered from fees, including costs such as enforcement costs which may not relate to all members. In particular, it is intended to clarify that the costs of monitoring compliance with a complaint handling code under the new duty may be recouped from members’ subscription fees, rather than paid for by Government grant. This will maintain consistency with the funding model for the housing ombudsman and alignment with the cost recovery goals set out in the Treasury Guidance entitled ` Managing Public Money’.
	Subsection (4) amends the HA 1996 to specify that a housing ombudsman, as part of a determination it has made following an investigation into a complaint against a member of its scheme, may order that member to review its practice and/or policy relating to matters relevant to that complaint.
	As part of a determination made by a housing ombudsman following a complaint received, an ombudsman can issue orders to the member that the complaint relates to which seek to address the individual complaint, for example through compensation paid by the member to the complainant. This provision will specify that a housing ombudsman has the power to issue orders that aim to prevent the recurrence of issues identified during investigation which may recur for other residents in the future.