Memorandum from the National Federation
of ALMOs (DAR 09-15)
CLG SELECT COMMITTEE—QUESTIONING
OF MINISTERS—2
NOVEMBER
There is serious concern amongst ALMOs about
the decision by the Housing Minister to divert £150 million
from the Decent Homes programme to help pay for new housing. This
decision will effectively mean that any ALMO, which had not achieved
a 2 star rating by 17 July 2009 (required to gain Decent Homes
funding) has any guarantee of receiving funding so undermining
one of the central tenets of the ALMO programme.
The primary consequence of this decision is
that for up to 11 ALMOs in 10 local authorities, promises made
to tenants in housing desperately in need of renovation are being
reneged on. There are tens of thousands of tenants expecting the
much needed and long anticipated home improvement work that they
have been repeatedly reassured by Government will be delivered.
This will be a devastating blow to them and will cause them to
question the integrity not only of the ALMO, as the vehicle which
they supported to provide them with a better standard of housing,
but of this Government which promised the necessary funding.
We are sure that the full ramifications of this
decision have not been thought through. One of these is that the
Decent Homes programme delivers local jobs and apprenticeships.
Many ALMOs in funding or expectation of funding already have partnerships
with local contractors and suppliers in place and cuts in funding
may well lead to jobs being lost. This will cancel out some, or
maybe even all, of the potential job gains from the new build
programme.
There are a number of points concerning this
that you may wish to raise with Ministers when they appear before
the Committee to be questioned on the Department's annual report.
The main point is to explore how the Government might find resources
from within the departmental or HCA budgets, where there is likely
to be under-spend, to enable it to still meet its pledges under
the Decent Homes programme. Already, since the announcement by
John Healey in July, HCA has had to find resources to enable it
to meet their obligation to two ALMOs, St Georges Community Housing
in Basildon and East Durham Homes, that had been inspected prior
to the announcement but whose inspection rating had not been published.
The NFA estimates that in reality the amount of money likely to
be required by CLG to fulfil its obligations to ALMOs reaching
two stars would be approximately 13m in 2009-10 and up to £150m
in 2010-11 (but possibly less dependent on inspection results).
In proportion to the overall budget this is not a large sum and
we are sure that the resources exist within CLG/HCA that are either
likely to be spare or could be re-prioritised without having an
impact on jobs.
Linked to this point is to establish how many
homes the CLG estimates will now have to wait beyond 2010-11 to
be brought up to decent homes standard, managed by ALMOs that
have gained, or are considered likely to gain, two stars on their
inspection in both 2009-10 and 2010-11.
I attach a sheet with more detailed information
about the impact of the money cut from the Decent Homes programme.
Gwyneth Taylor
NFA Policy Director
IMPACT OF MONEY CUT FROM DECENT HOMES PROGRAMME
ALMO
| Expected funding package (all sources)
|
Inspection date and comments |
| Charnwood Neighbourhood Housing | £13 million in 2010
Total bid £36 million over three years
| Inspection due February 2010 |
| Rykneld Homes, North East Derbyshire | £6 million in 2010-11
Total bid £60 million over
five years
| Inspection due February 2010 |
| Salix Homes, Salford | £50 million in 2010-11
£20 million in 2011-12
| Inspection due February 2010 |
| Homes in Sedgemoor | £6.3 million in 2010-11
Total £53 million over
five years
| Inspection due February 2010 |
| Homes in Havering | £9 million in 2009-10
£21 million in 2010-11
Total—£112.35 million
| Inspection completed September 2009
Funding package was agreed in February 2008
|
| Lambeth Living | £233 million (indicative) over next five years—no funding before 2011
| Funding bid submitted but not yet approved
Inspection date February 2011
|
| United Residents Housing (Lambeth) | £23 million over next two years
| Inspection due February 2010 |
| Lewisham Homes | Total bid—£145 million
Estimate £20-25 million in 2010
| Inspection due May 2010
Funding bid will need to be increased due to failed stock transfer
|
| Redbridge Homes | £7 million in 2009-10
£6 million in 2010-11
£39 million total
| Inspection due February 2010 |
| Sutton Housing Partnership | £112.5 million over next
five years
£4 million in last quarter 2009-10
£24 million in 2010-11
| Inspection October 2009
SHP has just completed a programme of Procurement of contracts for the Decent Homes programme. The deferral of funding may result in a requirement to retender at a later stage at potential additional cost
|
| Tower Hamlets Homes | £12 million in 2010-11
£25 million in 2011-12
| Funding bid yet to be agreed by CLG
Inspection due June 2010
|
29 October 2009
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