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L&Q outlines ‘pandemic plan’ to mitigate impact of coronavirus
L&Q has published a “pandemic plan” outlining the steps it has taken to mitigate the impact of the coronavirus outbreak as it announces the closure of its construction sites.
In a note released to the stock exchange this afternoon, the giant London housing association said it has set up a crisis response team and developed a “pandemic plan” to help it deal with the health and business threats caused by COVID-19.
The note also confirms that the association will “stop all discretionary spend and delay capital expenditure plans” in the short term, in a bid to overcome the material impact coronavirus will have on financial performance and cashflows.
As part of the key points put forward in its ‘pandemic plan’, the organisation promises not to take legal action against tenants in rent arrears. However, it states that it will be reminding tenants that they should pay their rent as normal to fund frontline services.
A “specialist income team” has also been set up to support customers struggling to pay their rent as a result of the outbreak and assist them in accessing the support available from government.
The association has also enacted a new direct maintenance plan, which will involve prioritising requests so emergency repairs can be carried out, as well as introducing screening for repairs and supplying repairs workers with personal protective equipment to reduce the risk of coronavirus spread.
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Procedures have also been put in place to ensure that emergency repairs can be carried out on properties even where the person inside is infected with coronavirus.
The organisation confirmed that “robust financial plans” have been developed to ensure its suppliers and contractors are still paid on time.
L&Q’s pandemic plan:
- Established a home-working approach for its customer contact centre
- Enacted tried and tested direct maintenance plans which involve prioritising requests so emergency demand remains well-serviced
- Introduced screening for repairs and personal protective equipment for its operatives to reduce the risk of coronavirus spread
- Developed procedures to ensure emergency repairs can be carried out, even if there is an infected person in the property.
- Maintained caretaking and estate services to ensure health and safety compliance on estates
- Completed coronavirus risk assessments at all of care and support schemes. Also introduced increased infection control measures, including additional cleaning and hand washing requirements
- L&Q will not take legal action for arrears at this time, but is reminding people that they should continue to pay their rent as normal as money funds essential frontline services
- Instructed specialist income teams to support customers who may be struggling to pay their rent by putting personal payment plans in place if needed and providing enhanced support for those affected by coronavirus.
- Put in place arrangements to help people access the emergency support that has been provided by the government
- Established robust finance procedures to ensure that contractors and suppliers continue to receive payment for goods and services
The details of the plan come hours after L&Q confirmed that it is halting construction work across all of its development sites to help stop the spread of the virus.
Earlier today, housing secretary Robert Jenrick said work could continue on construction sites as long as workers adhere to Public Health England’s guidance on social distancing.
However, in its trading statement, L&Q said it had found social distancing “extremely difficult to achieve” on its sites and that it wanted to reduce the number of its workers using public transport in order to maintain the safety of key workers.
The stock market update also said that while it was too early to understand the financial impact the coronavirus outbreak would have on the association, it had take steps to conserve cash and increase flexibility.
The statement said: “We are taking measures to tightly manage our working capital and capital expenditure and have taken the decision to stop all discretionary spend and delay capital expenditure plans.
“However we are likely to face weeks or months of uncertainty, including periods of inactivity and disruption to income streams and therefore our ability to generate cash.
“Furthermore, while every effort is being made, on-going disruption could have the ability to impact our financial reporting timetable, including the publication of quarterly trading statements and the publication of our audited financial statements for the year ending 31 March 2020.”
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