Charity & Social Enterprise Sector Debate 2019

Almshouse Assocation Panel (of Consultants) member, Stoneking LLP recently conducted a debate on Charity and Social Enterprise in 2019.

The Motion: To be, or not to be a registered charity

Attendees were asked to complete a survey prior to the event and then asked the same questions post debate. Tim Rutherford, Head of the Charity and Social Enterprise Sector Debate at Stoneking LLP, has shared the results of the surveys with Almshouse Association Members.

Should you have any questions regarding the debate, please contact Tim Rutherford at Stoneking LLP directly at timrutherford@stoneking.co.uk


In Search of the Lost Will of John Marler of Essex

Mr J F Hackworth sent the Association this wonderful account of his 20 year search for the lost will of John Marler of Essex….

One John Marler of Essex declared land and tenements in his will for the benefit of the poor of Kelvedon. The will was apparently dated June 20, 1419. I say apparently because nobody seems to be able to find the will although there are authoritative accounts of it. Two readily accessible documents written nearly 200 years ago attest to the date. If the date is right, the John Marler Charity, which to this day runs the almshouses in Church Street, was 600 years old in June.

A Charities Commission survey tells us it is the 24th oldest charity in England and one of the oldest almshouse charities still active.

I have been treasurer for 20 years and have tried spasmodically to find the will, more determinedly of late because of the anniversary. I confess I have failed as did some notable antiquarians in previous times. I have had the benefit of the internet and assistance with my searches from the British Library and the Westminster Abbey library whereas my predecessors did not.

I found the first document of interest in the Essex Record Office; what is known as the Brougham Report, published in 1837 as Report of the Commissioners for Inquiring Concerning Charities. The report opens with the clear statement:

John Marler, by will dated 20th June, 1419 gave two tenements called the Almshouses,……’.

The second ‘document’ of interest is in fact a wooden plaque to be found in the church recording Benefactions to this Parish’. The plaque was installed by the Rev Charles Dalton and his two church wardens in 1827. This is what it says about John Marler:

JOHN MARLER, in the year 1419, gave two Alms-Houses in the London Road for the residence of poor persons. Also two other tenements in Church Street, an acre of meadow in Broad Mead, and some small rent charges out of his estate, to keep the Church Porch and the Common Pump in repair, and the remainder to be given to the poor.

Since the two sources essentially say the same thing we might infer they both have the same source. That source would appear to be a report of an ‘Inquisition’ at Kelvedon. The inquisition was held at The Lion, now the Knights Templars houses, in 1600 and dealt with mal-administration of the charity. The inquiry was led by the Suffragan Bishop of Colchester. The report is that given by W.J.Hardy, in an article entitled Essex Charities, in the Home Counties Magazine of 1899. Here is the opening text:

Inquisition taken at Kelvedon, 7 August, 42 Elizabeth. The jury say that John Marler, late of Kelvedon, gentleman, by his will, dated 20 June, 7 Henry V., A.D., 1419, devised that two “rentaryes” wherein “Petronell and one John Owen did then inhabit,” should forever be upheld and repaired ” to harbour and lodge poor people,” and if they should not be so kept, then he willed that two new ” rentaryes ” lately [built] between the tenement late John Gerard’s, and the garden called Brendhouse Garden extending towards Kelvedon church, being then in the hands of his feoffees and executors, should remain and be employed to the upholding and repair of the two “rentaryes.”

The report goes on to tell us about rents of his properties to be used for the support of the almshouses and to support the poor of Kelvedon. The reference in the extract was to a new property referred to later in the report as Starborowes and this seems to be where the almshouses, ‘Marlers Cottages’, are now. The original almshouses were in the London Road, just round the corner, and these were demolished in the late 19th century.

Original Marler Almshouses, in London Road, were demolished in the late 19th Century

The report and a document in the Harley collection in the British Library, MS4136, give an insight into the nature and status of the man. He left money for masses to be said on his obit day and for his wife and mother to be remembered. He was clearly a man of substance but not of the aristocracy, so exactly how his wealth came about we do not know. However we learn from the rent rolls in MS4136 and from the library in Westminster Abbey that he was the Abbey’s steward in Kelvedon. Westminster Abbey at the time owned lands in the area: in particular Church Hall Manor which lies immediately to the south of the church.
A further insight into the man and the medieval mind comes from the 1474 will of his grandson, Thomas. This is the main content of MS4136 and is evidently a copy, mostly in English, made in the reign of Edward VI. We speculate as to why the copy was made, but Henry VIII abolished chantries, presumably to get his hands on the money! Thomas declared he was ‘in good and whole mind and dreading the hour of our death’. He was also a property owner who left money for masses to be said for himself and his family and he made donations so that he was buried alongside his family before the alter in the chancel. There was a record of gravestones laid in the chancel floor before Victorian tiles were laid over it. One of the stones said here lies John Marler.

Hic jacet Johes Marler qui obiit xii die Sept 1430’

So John Marler was a man of wealth, piety and charity. The report of his will in the ‘Inquisition’ text states:

Which lands and rents he willed should never be sold, nor the profits taken to the use of John his son, but “ever more lasting ” remain in the hands of six honest and sufficient men of the parish of Kelvedon.

That is exactly how it is today, 600 years later.

By the way, if you take communion at the altar rail, just remember whose grave you are walking on.

J F Hackworth, 2019

Can you help Mr Hackworth in his search for the lost will ? If so, please contact the Association at karenmorris@almshouses.org.


Government’s Good Work Plan

The Government has introduced a Good Work Plan setting out a number of employment reforms. To assist our members, Almshouse Association Panel Member, Ros Hammond of Employment Law in Action has summarised the main proposals in the article below:

 Are you up to date with the Good Work Plan?  

The Government´s Good Work Plan sets out a number of employment reforms as a result of the Taylor Review of Modern Working Practices.  The heart of the Taylor Review focuses on an overriding ambition that all work should be fair and decent.  Four consultation documents have been published alongside the Government’s response to the Review and these focused on: employment status; increasing transparency in the labour market; agency workers; and enforcement of employment rights. 

In summary the main proposals are:

  • The right to request a fixed working pattern – Workers who work variable hours will be able to request a fixed working pattern after 26 weeks’ continuous service with a Company.  At this stage it is thought that the Regulations will not be dissimilar to employee rights regarding requesting flexible working.
  • Extending the statutory break in service – The ’qualifying break in service’ will be extended from one week to four weeks.  However, be aware that in accordance with existing case law, additional tests are applied when considering continuous service and it is not always as straightforward as applying the qualifying break.
  • Information and consultation – The current threshold for employees to request to set up collective Information and Consultation arrangements will reduce from 10% to 2% of the relevant grouping of employees.
  • Employers banned from making deductions from staff tips – In some sectors tips, gratuities and service charges can be a significant part of staff income. Through current practices, employers may only pay a proportion of the tips received to its employees. Through the proposed changes, this will no longer be allowed.
  • All employees and workers will be entitled to a written statement of terms from day one of the working relationship (including agency workers) – Currently the legislation applies only to employees and they must be provided with a written statement of terms within two months of starting work.  This will be extended to workers, and both workers and employees must be provided with the statement of rights on appointment.
  • Employment status to be clearer – Proposals are being put forward for an online employment status tool to be developed, which will hopefully streamline the tests in respect of employment status, making status clearer.
  • Statutory Holiday Pay – The reference period will be increased to 52 weeks from 12 weeks.
  • Agency Workers – The ‘Swedish Derogation’ in the Agency Workers Regulations 2010 will be repealed, the current situation allows Temporary Work Agencies to avoid matching the amount paid to a temporary agency work in comparison to a directly recruited worker.
  • Naming and Shaming – For those employers who fail to pay employees or workers in respect of Employment Tribunal awards, they will face being named through a naming scheme.

The Taylor Review proposed over 50 different reforms, most of which the Government are consulting about or proposing changes.  Whilst the Government claims this is the biggest reform of employment legislation in 20 years, we believe that it is more about clarity of some areas where case law has caused confusion.  As the Government provides further details in respect of its recommendations, we will share these with you.  For further information the Good Work Plan can be found in full by following this link:

https://www.gov.uk/government/publications/good-work-plan

Written by Ros Hammond, Employment Law in Action Ltd E: info@eliaction.com www.eliaction.com

Posted 5 Sept 19


Charity Barometer 2019

In these rapidly changing times, uncertainty is the new norm and new risks are emerging all the time. Increasingly, charities need to spend more time thinking about not only the potential rewards, but also the risks they are facing, and ensuring that they are doing enough to respond to internal and external change.

Ecclesiastical has partnered with Third Sector Insight to produce a helpful document highlighting the needs for risk management, identifying the top risks and concerns and signposting possible solutions.

The Association has made the publication available here.


Posted 5 Sept 19


Value for Money Metrics for almshouse charities

The Regulator of Social Housing changed its accounting rules in a new direction, published 20th February 2019. The new rules are part of the English regulator’s plan to align its requirements with the Value for Money Standard introduced in April 2018.

Under the rules, all almshouses charities that are Registered Providers of Social Housing are required to comply. To assist those members that are Registered Providers, a briefing note has been produced that can be found here.


Posted 5 Sept 19


Stake your Credit Claim

The recent changes to eligibility for free TV licences brought the subject of a means-tested Pension Credit to the fore.

It is thought that many pensioners are unaware of the credit and it has been estimated that 650,000 over 75s could get Pension Credit if they applied.

A recent article written by Paul Lewis, featured in the Radio Times explains the eligibility criteria and gives details on how to claim. To view the article in full, please click here

Disclaimer:
The details and opinions expressed in the attached article are those of the author. They do not purport to reflect the opinions or views of the Almshouse Association.

Posted: 8 July 19


The Chronicles of Christopher Round, retired Almshouse Clerk

“This article is being written almost a year after my retirement from my dual roles as Clerk to both The Charity of Elizabeth Jane Jones (EJJ) and Heston Parochial Charities (HPC), two Almshouse charities based in the London Borough of Hounslow, yet proximity was about their only similarity, apart from the Clerk!. HPC is very small – just 4 flats in a purpose built block overlooking part of Osterley Park – yet extremely well reserved, so my comments hereafter relate exclusively to EJJ.

One of the last events I hosted at EJJ was a lunch meeting for members of the West London Almshouse Group (WLAG), an entity whose formation was spawned in part by a lunch I held at my former charity to say goodbye and thank you to Anthony Leask – who was about to retire as the Director of the Almshouse Association – to which some 4 or 5 Clerks from other local Almshouses were invited.  The WLAG lunch meeting in March, 2018, was attended by Julian Marzak, on behalf of the Association of which he was then  an Assistant Director, and he it was that urged me to commit my comments to writing, so that others might benefit from my near 20 years’ experience as an Almshouse Clerk.

After spending some 30 years in the City’s financial markets, following Sandhurst and 6 years of commissioned service, I entered the Almshouse sector, as a Nominative Trustee, in 1998.  It soon became apparent that most of their practices were fairly antiquated so when the then Clerk resigned, I threw my hat into the ring to try to contribute much more by providing good administration and sound financial management.  My second Clerk’s role was with EJJ and I first arrived at the Fairholme Estate in Bedfont, EJJ’s home, in March, 2003; taking over as Clerk the next month.  Fairholme is a Grade II (arts & crafts) listed Estate, built between 1930 and 1935, consisting of 72 separate homes of differing sizes, with a large central Assembly Hall, all set symmetrically around, in a sort of squashed horseshoe shaped, roadway in some 12 acres of glorious, tranquil gardens, yet only half a mile south of Heathrow Terminal 4, roughly at mid runway, so very little aircraft noise in most winds;; Fairholme is near enough Utopia. a genuine haven from the hustle and bustle of urban life!

Moreover, EJJ is a paradox, a rarity among Almshouse charities, as the only object of the Trust Deed was to provide homes for the poor – no age specified, no geographic stipulations – and the Charity had no “rules” for the residents, other than, by tradition, no-one was allowed to walk on the grass under the age of 70, or before they had lived at Fairholme for 20 years!  There was no Warden and no staff –  other than the part time Clerk and a couple of contracted gardeners who had been there for years – no book to sign in or out, open gates and the only applied requirement was that everyone should be able to look after themselves, with such domiciliary support services as might be needed.  Because of the sizes of some of the house – there are 12, 4-bedroom houses at Fairholme – children were welcome, so EJJ does accommodate lots of families.

Although I was working single handed in the office, I managed to secure the services of a very experienced Surveyor I had got to know very well whilst at my previous Almshouses to advise generally about the properties, and to supervise all refurbishments, by inviting tenders from those small builders he knew and trusted – our previous builder was soon christened “Jack the Lad”, and his slapdash workmanship ensured that his services were dispensed with fairly quickly.  At the same time, a local firm of Chartered Accountants, with whom I had worked previously, were appointed to help and advise the Clerk, as well as conducting a professional Audit.   Hence, for the first time, the Trustees had a small team, just 3 of us, to guide and advise them and the Charity for the benefit of both EJJ, and its current and future residents. It was not until 2011, that additional staff were engaged formally, although the first appointee has helped me a few years early with the accumulated backlog of filing!  She was joined soon afterwards by a full time gardener, when the previous head gardener retired, and then a couple of years later, by a part time, Sage bookkeeper.  Lastly, in 2015, a part time secretary was appointed to take Board Minutes amongst other duties.

Luckily, both the Chairmen I served under, for several years each, were content to allow me to run EJJ without interference for their entire tenure, so regular telephone and face to face contact ensured they were kept fully appraised of everything that was happening and allowed me to bounce ideas off them.

Much earlier, in 1997, the then Trustees had embarked on an ambitious programme to refurbish the interior of all the properties on the Estate but just 18 homes had been refurbished when I arrived there.  Annual income then, all from WMCs, was about £146k, there were reserves of £105k yet the contractor’s refurbishments were costing some £100k a year.  This situation was completely untenable without some major funding, so all refurbishment work was halted whilst additional funds were sought.  As it happened, I had establish an excellent rapport with the Hammersmith branch of Allied Irish Bank at my previous charity, so my request for assistance was received favourably and AIB agreed, in principle, to grant EJJ a 20 year mortgage of £2.5m, at 1.125% over base, within 10 days of their visit to Fairholme.  However, all thoughts of being able to re-start the refurbishments shortly were soon dashed due to the procrastination of AIB’s lawyers.  Luckily, I was able to raise a £100k loan privately, so refurbishments could continue at a modest pace, pending receipt of the mortgage monies.  After over a year of going through every hoop imaginable, EJJ did eventually received its money, and an initial £975k was drawn down, with the balance of £1.525m available, if and when needed.

One condition for the mortgage was that WMCs had to be increased to more realistic levels – for example, a 1-bed bungalow was then £39 a week and a 3-bedroom house was £70 a week; After being in post for 6 months, a major hike to £70 and £120 respectively, with the larger 4-bedroom houses set at £150, was applied.  In the absence of any guide lines, I had devised a logical mathematical formula, based on the number of bedrooms, and these new charges soon had a dramatic effect on EJJ’s cash flow

The improved cash flow ensured that the pace of refurbishment quickened markedly, and attention was devoted first to the Assembly Hall – new kitchen, new lavatories and a proper office, as this  was, and is, the heart of Fairholme –  to new soak-aways for every house, all the cast iron gutters, with embossed motifs every few feet, and downpipes on the house fronts were refurbished and no longer leaked – and we avoided having to renew 99% of the cast iron work, for which a quote in excess of £500k had been tendered, whereas the dedication and skill of one contractor, who took each and every length down, then back to his workshop before re-fixing them in their original positions, cost some £150k! – disabled ramps were built where necessary, CCTV installed, a new garden shed built to house tractors and all other garden equipment, more staff had been employed and the Estate’s grounds and several individual gardens received awards regularly at the annual London Gardens Society competition..     

By the time I retired in 2018, all but 6 houses – not given the “treatment” due to their resident’s specific requests – had been fully refurbished and EJJ has spent more than £4m on these improvements.  Annual income had grown to circa £550k by prudent cash flow management, reserves had been re-built to nearly £600k, yet no beneficiary household was ever charged more than some 65% of Local Housing Allowance,

I should also at this late stage re-mention Anthony Leask  with whom I had  forged a strong friendship over the years and I was really delighted when he agreed to “come out of retirement from all non-Association Almshouse matters” by agreeing to become an EJJ Trustee in 2015. Entirely on his own initiative, he offered to conduct a top-to-bottom review of EJJ, so that I could be certain that the charity I handed over eventually to my successor was in as good a shape as possible. If I were a proud man, I might not have mentioned this, as the 26 page “Leask Report” found that we were not fully compliant 2 or 3 times on every page!  Most of his issues dealt with relatively minor matters, like all the latest Health & Safety rules, the lack of an accident book, very few formal procedures or budgets had been agreed by the Board, only embryonic risk assessments and no Disaster Recovery plan, etc. but he concluded :-

 “The length of this report and the number of recommendations might suggest the charity is not well.  Such a perception would be wrong.  There is a need for some change and for the improvements made in recent years to be sustained, but overall the charity is well run; the almshouses are in good order; the finances sound and the residents happy.”

There are a number of principles that have guided me throughout which I would like to share, as these formed the backbone of my tenure as an Almshouse Clerk. 

  1. All of us, that is Trustees, management and employees are with their charity to try their very best to make life as comfortable and stress-free as possible for all beneficiaries (our residents)
  2. We are all are mere custodians of the charity and it is our duty to endeavour to pass it on in better shape, community and ambience that when we joined.
  3. Never be frightened to consult your peer group – the Almshouse Association itself, local Almshouse groups or even other Clerks – as many others will have faced, and solved similar issues in the past.  As the saying goes “a problem shared is a problem halved” 
  4. The Charity Commission (CC) seems to have changed its attitude to Almshouses, and are now much more helpful.  EJJ changed its status and incorporated, with the full support of the CC, in 2015 so is now governed by a Trustee company with limited liability, still controlled by all the former Trustees who are now Directors of the Trustee company.  More importantly, nothing else, apart from the Constitution has changed, same Charity number, same bank accounts, no need tore-register the property etc. 
  5. Unless a charity has massive reserves, Collective investment funds, specifically designed for Charities are far easier to monitor than individual stocks and shares.  In particular, EJJ established a policy to build up its M&G managed NAACIF funds until their combined value was in excess of £1m, whereupon another investment manager might be used for the next cycle of investments, until these also reach £1m, and then another, and so on.
  6. Have the courage of your convictions, as a Charity that stands still, is actually losing ground.   Never be frightened to investigate and analyse any and every opportunity to expand / and or to provide better homes for the beneficiaries.  If your almshouses are in an expensive area but difficult and costly to maintain, consider re-providing perhaps more almshouses in a less expensive part of your area of benefit, and then letting the original almshouses on a commercial basis for long term investment.  With careful planning, it can be done!

I have tried in this article to chronicle my Almshouse career and to highlight the various hurdles faced, and then to conclude with those principles that have steered me through some turbulent times.  I hope that others may benefit from my experiences.

Now I have retired, I am delighted to have handed over the reins of EJJ (and HPC) to Nigel Lucas whose Almshouse experience is similar to my own, so that I am sure the improvements highlighted in the Leask Report, will be followed through and that EJJ and Fairholme, my real haven for 18 years, will be in very safe and competent hands. “


TV Licence update

No doubt you have heard the BBC announcement that anyone aged 75 for over will now be required to pay for their TV licence (unless they receive pension credit). So how does this effect almshouse residents?

Firstly, any person who is 75 or over will continue to be covered by their free licence until it runs out on 1st June 2020.

After 1st June 2020, any person who is 75 or over (that does not qualify for a free licence because they do not receive pension credit), will be required to pay for a TV licence, but will qualify for a reduced licence fee under ARC rules if the almshouse charity is eligible.

For details on ARC eligibility, please refer to our previous news items on the subject.

News item 23/03/19
News item 30/07/18


Published 12 Jun 19


Digital Switchover Guide

By 2025, analogue telephone services will be switched off as the UK’s telecoms infrastructure is upgraded to digital connectivity. This shift has major implications for the 1.7 million people who rely on telecare in the UK, and on the organisations that manage health, housing and home care.

Legrand, Erosh, TSA and the Almshouse Association have been working together to create a guide that goes some way to outline the process that is taking place between now and 2025. To find out more, both EROSH and the TSA are running regular regional networking events that will aim over the next few years to support organisations in their journey to digital. Links and contact details can be found in the Digital Switchover Guide.


Claiming Universal Credit – lessons learned

An almshouse charity has shared the experiences of its younger residents making claims for Universal Credit (UC) which in some cases have proved to be challenging.

“It has been found that in the case of those almshouse charities that are Registered Providers it is critical at the outset that the accommodation is declared as being social rented accommodation. If a charity is not a Registered Provider it will becategorised as private rented accommodation the maximum monthly ‘rent’ paid via Universal Credit is equivalent to the local housing allowance.

The residents, when making the claim, should not indicate that they are accommodated in supported housing on the basis that the typical support provided by almshouse charities is that of Lifeline, Scheme Manager support services etc. which are not deemed to be eligible support costs from a UC perspective. It is also important that when completing the Social Rented Sector verification form the charity as ‘landlord’ should indicate that the resident is not in ‘specified accommodation’, otherwise known as ‘supported exempt accommodation’.

The weekly maintenance contribution (WMC) paid by the resident should be inserted under the ‘basic rent amount’ required on the form; any other housing-related costs in addition to the WMC should be categorised as ‘ineligible service charge amount for UC’. Any difference shown between the resident’s declaration of ‘rent breakdown’ and the ‘landlord’s declaration will result in an anomaly and the resident being asked whether he or she agrees with the landlord’s figures.   

In the case in question, however, the UC office considered the resident’s declaration to relate to ‘supported housing’ without liaising with the local authority’s Housing Benefits Team. It is for the local authority to determine whether the support provided by an almshouse charity to its residents meets the conditions of ‘supported exempt’. In these cases the claimant must claim Housing Benefit to meet the housing costs and it should not form part of the UC claim.

The charity then provided a detailed breakdown of their service charge to the local authority following which the authority confirmed that ‘supported accommodation’ did not apply and that the housing costs would need to be met by UC. However, the referral from the UC office to the local authority which then referred the matter back again led to an undue delay with the resident being nearly five months in arrears in receipt of benefit payments. 

The lessons learned from the experience are:

Try to engage with the resident early on in the process to ensure the declarations made on the UC form are correct.

Liaise with the local authority to obtain a ruling as to whether the nature of support provided by the charity to residents leads to a classification of ‘supported accommodation’ or otherwise.

Check the terminology carefully i.e. ‘supported housing’, ‘specified accommodation’ or ‘supported exempt accommodation’. “