Agenda item

[Report of the Director of Housing, Regeneration and Planning.  To be introduced by the Cabinet Member for Employment, Skills and Corporate Services]

The Cabinet Member for Employment, Skills and Corporate Services introduced the report which set out the proposal to insource Homes For Haringey, provided the results of an 8-week resident consultation process, and sought approval to delegate detailed implementation to Council officers. 

 

The Cabinet Member responded to questions from the Cabinet:

-           There was a cross-party working group which had met twice, with engagement from both parties.  A meeting had also been held with a residents group to seek residents opinions on how the insourcing would take place and how future tenant and leaseholder involvement would look post-insourcing.

-           If approved, there would be a systematic project plan with informal and formal legal processes in terms of contracts and staff transfer.

 

The Cabinet Member responded to questions from Councillor Cawley-Harrison:

-           It was not possible to confirm whether the residents’ scrutiny panel or housing board would continue in the current form as discussions were taking place on what the resident’s voice would look like in the future.  Different models were being reviewed to look at the best way to engage with residents.

-           Bringing services together should enable better service delivery and ensure that delivery is streamlined.  This would achieve savings however it was not yet quantified what those savings would be.  There would be costs involved with the transfer and it was hoped over time that savings would be achieved to cover those costs and provide re-investment into services in the future.

-           One of the reasons for the transfer was to strengthen the Council’s ability to respond to the regulations coming forward from the Government 2020 White Paper, and the Council will need to make sure that performance and value for money information was made available to the Regulator and residents.

 

RESOLVED that the Cabinet

 

1.         Note and consider the results of the consultation with tenants and leaseholders on the proposal to insource services from Homes for Haringey (see Appendix A), as well as the submission from the Board of Homes for Haringey (see Appendix B).

 

2.         Approve the insourcing of services from Homes for Haringey, based on the rationales set out in the report, with the detailed implementation process delegated to Council officers, including service of a notice to terminate the Management Agreement, finalising the organisational structure for incoming staff and services, staff consultation and transfer under TUPE regulations, transferring budgets and financial processes, and resolving legal issues such as contract novation, ongoing management of leases, support to the Haringey Community Benefit Society, etc. as set out in section 6.7 of the report.

 

3.         Approve co-design and co-production of new resident engagement arrangements, including involvement in policy, operational oversight and scrutiny, with detailed proposals to be brought back for final approval during 2022, as set out in section 6.6 of the report.

 

4.         Approve a virement of £565,000 for the year 2021/22 and note  an additional sum of £550,000 required next year, 2022/23, to meet the one-off expenditure needed to complete the transfer processes, as set out in paragraph 6.7.2 of the report.

 

Reasons for decision

 

As set out in the 22^nd July 2021 Cabinet report approving the resident consultation, the proposal to bring HfH back in-house is rooted in four key rationales:

 

·         Robust governance – accountability to the regulators and residents.

·         Value for money – efficiency and quality of services.

·         Integrated services – housing as part of a wider customer service offer.

·         Improvement – enhancing organisational transformation to deliver better outcomes.

 

The July report set out the rationales for insourcing to meet these objectives, as follows.

 

Robust Governance

 

The rationales for bringing HfH back in-house to ensure robust governance are based on the following:

 

·         The Council is the legally liable landlord for its 20,000 tenants and leaseholders;

·         As a Registered Provider, the Council is accountable directly to the Regulator of Social Housing and the regulation of local authority landlords is now being strengthened;

·         The Council is the “accountable person” for building safety under the new post-Grenfell regulations now progressing through parliament;

·         The Social Housing White Paper 2020 seeks a stronger local voice for residents in both building safety and housing management and maintenance services;

·         Direct delivery in-house will streamline and strengthen governance and accountability structures to meet the changing regulatory climate.

 

Value for Money

The rationales for bringing HfH back in-house to deliver VFM are based on the following:

 

·         Efficiency savings are anticipated by eliminating areas of duplication and bringing together Council and HfH back-office services;

·         Corporate services supporting the HfH Board and subgroups will no longer be needed;

·         Client-side monitoring resources in the Council can be repurposed;

·         Some HfH functions will be integrated with Council functions to deliver added value;

·         Any efficiency savings to the HRA can be reinvested in resident services or add value by funding capital investment in estate improvements and new homes.

 

Integrated Services

The rationales for bringing HfH back in-house to integrate services are based on the following:

 

·         An integrated management structure within the Council can facilitate a faster and more responsive decision-making process across the housing service, including the new build delivery programme;

·         Service improvement resources will be strengthened and focused by bringing Council and HfH performance improvement teams together;

·         Bringing Housing Demand services back in-house will enable closer alignment with the Council’s social care and housing-related support services as well as Connected Communities;

·         Integrated services will be more responsive to external demands, such as the new regime for keeping residents safe in their homes, the charter for social housing residents (social housing white paper) and customer requirements, due to the direct strategic and operational control and direction of the services, with clear lines of accountability to elected Members;

·         Service integration opportunities have been identified with Adults and Health; Environment and Neighbourhoods; Customers, Transformation and Resources; Housing, Regeneration and Planning.

 

Improvement

The rationales for bringing HfH back in-house to improve service delivery are based on the following:

 

·         Closer alignment between the existing HfH transformation programme and the Council’s transformation programme, in particular in terms of use of technology and office spaces.

·         Strengthened resident voice including co-design and co-production will lead to increased customer satisfaction.

 

Having completed a comprehensive resident consultation process and undertaken detailed service review work, the proposal to bring HfH services back under direct Council control and responsibility is now further supported by:

 

·         The majority of residents who expressed an opinion were in agreement with the Council’s proposal – see summary below and full report in Appendix A.

·         Recognition by the HfH Board of the scope for successful transfer resulting in thriving services – see below and full submission in Appendix B.

·         Service integration opportunities have been identified and explored demonstrating scope to achieve efficiencies and improved outcomes for residents – see below.

 

Alternative options considered

 

There are a range of different possible approaches to organising and procuring housing management and maintenance services including: transfer ownership to a housing association; transfer management to a housing association; procure a private sector managing agent; bring services in-house; continue with management by HfH.

 

Transferring ownership would require a positive result in a residents ballot and a financial arrangement to support acquisition by a housing association.  Given the current and future stock investment requirements and the constraints on rental income, it is highly unlikely a workable financial arrangement could be arrived at.  This approach would be completely at odds with the Council’s long term strategic commitment to build 3,000 new council homes in a decade.  This option has not been explored in any detail.

 

Transferring management to a housing association would involve a major procurement process to put in place a long term contract, resulting in a transfer of staff.  This approach would require retaining a “client-side” contract management resource in the Council, eliminating one of the key efficiencies achievable by insourcing the HfH services.  It would also fail to increase the direct accountability of the Council, a core objective given the impending regulatory changes.  This has not been explored in detail.

 

Procuring a private sector managing agent would also involve a major procurement process to put in place a long term contract, resulting in a transfer of staff.  This approach would require retaining a “client-side” contract management resource in the Council, eliminating one of the key efficiencies achievable by insourcing the HfH services.  It would also fail to increase the direct accountability of the Council, a core objective given the impending regulatory changes.  This has not been explored in detail.

 

Continued management by HfH would be the status quo option.  This would require retaining a “client-side” resource in the Council, eliminating one of the key efficiencies achievable by insourcing the HfH services.  It would also fail to increase the direct accountability of the Council, a core objective given the impending regulatory changes.  Whilst housing service improvement and integration with other Council services could continue to be pursued by HfH, officers are of the view that there are greater opportunities for improvement and closer integration by insourcing HfH staff and services into the Council.