Social Housing Squeeze will cost the North West £530 million over 5 years

A major new report released by Circle Anglia one of the UK’s leading providers of affordable housing, says that mobility problems faced by social housing tenants in the North West will cost the economy an estimated £106 million each year – this will amount to £530 million over the next parliament – the highest of any UK region.

Circle Anglia, which runs the UK’s only national, not for profit mutual exchange service:- whouseexchange.org.uk,  commissioned think tank Human City Institute to investigate the impact that lack of mobility in social housing has on our society. The report reveals that the barriers faced by social housing tenants wanting to move home nationwide, are costing the UK’s economy at least £542 million each year.

In ‘Counting the Costs’, Human City estimates that 495,000 of the UK’s 3.9 million social households are victims of the UK’s Social Housing Squeeze: they want to move home, but are unable to do so. The report identifies the key reasons why people want to move, and calculates the economic and social costs of people not being able to move. The total estimated £542 million annual economic cost is broken down by:-

► £305 million based on tenants not being able to care for relatives. Recent research suggests the average carer is saving the nation £15,260 each year (Carers UK)

► £81 million to the NHS, for example, through costs of overcrowded and poor housing associated with GP consultations, associated treatments and hospital visits

► £48 million based on tenants wanting to move into employment, but unable to do so. Factors include the ongoing costs of welfare payments and the lost tax revenues

► £18 million based on tenants wanting to move to take up better work but unable to do so. Factors here include the cost to the economy in terms of lost productivity and potential increased tax revenues through higher earnings.

► £32 million based on educational under-attainment from overcrowding: factors include a lack of quiet space in which to do homework and disputes caused by sharing of bedrooms.

► £58 million to the Criminal Justice System. The Social Exclusion Unit has discovered that the provision of stable, good quality housing can reduce reoffending rates appreciably.

The study finds that 18 per cent of social housing residents in the North West say they want to move properties. Yet new letting opportunities to existing tenants in the region have seen a 73% decline over the past 13 years, combined with a major fall, over the same period, of 500,000 in the number of available houses in the sector nationally and an escalation in demand for social housing, with 1 in 12 households in England now on waiting lists.

As a result of the staggering figures unveiled by Counting the Costs, Circle Anglia is calling for 3 clear actions from the Government to help get social housing tenants in the North West moving, as part of its ongoing mission to enhance Life Chances. These are:-

► All Social Landlords should join a national mutual exchange register: The Government should clarify that all social landlords and Local Authorities must join and support a scheme which is dedicated to enabling mutual exchange for all Local Authority and Housing Association tenants. In addition, this should be supported by a funded national helpline.

► Remove barriers that prevent people from moving: For example the complexities around transferring care packages for those with support needs and blockages in the way that homes are allocated. The Government should encourage and enable Local Authorities to support cross boundary moves and simplify the process. This would mean that tenants applying for transfers don’t have to compete with external applicants and are automatically considered for mutual exchange.

► Incentivise mobility: by linking health and employment initiatives more directly with mobility, the overall costs associated with the lack of mobility could be reduced.

David Williams, Executive Director Strategy and New Business, Circle Anglia, said:- “Social housing residents here in the North West, want to move for a number of reasons, including health, to care for sick family members, to escape overcrowding or to seek work in more prosperous areas. Whatever the reason – one thing is clear – it is near impossible to make the move on the transfer list - and the social and economic costs to the UK are devastating.  We know from House Exchange - our not for profit mutual exchange service - that while 53% of people who sign up with us had been trying to move for more than 2 years, 80% move within 6 months of registering with us. With around half a million people on the social housing transfer list, if their landlords simply signed up to one national mutual exchange service we could create a fluid, free-market of house exchanges that would help so many people. The Coalition has highlighted the problem. We hope it also encourages and enables the right solution.”

Kevin Gulliver, Director of the Human City Institute, said:- “In the current environment of austerity we are likely to see a continuing fall in the numbers of newly built social homes as well as an increased demand for social housing. So it’s more important than ever that existing social housing stock is used as efficiently as possible. The creation of a national house exchange system would make a significant contribution to improving the lives of thousands of tenants and has the potential to make a significant economic impact, just at the time when Government is looking to make public sector savings.”

Liverpool City Council is offering voluntary severance to staff earning over £40,000

LETTERS have been sent out inviting managers to apply for the discretionary compensation scheme.  Significant reductions are expected in local government funding over the next few years, and it is part of a range of cost saving measures to reduce the wage bill for senior staff while protecting front line services.

Council leader Joe Anderson said:- “There are tough times ahead for local government and we are acting now in readiness for the reductions in spending which we know are coming down the track.  We are concentrating our efforts on taking out posts which will have the least impact on the most vital services.  We are focused on streamlining the organisation, but the bottom line is that we will try wherever possible not to have reductions in staff that impact on the quality of the services we deliver.”

Earlier this month the council opened the scheme to 80 senior staff earning over £60,000.  And the Executive Management Team have taken a 15% pay cut after volunteering to forego bonuses for meeting performance targets, saving £150,000 per year.

A council spokesman said:- “This is a voluntary scheme aimed at reducing our costs.  Each application for early release from employment will be considered individually on its merits and will only be approved when it is in the best financial interests of the council and delivers real savings.  It will not be open to front line staff such as social workers because we want to protect services for the most vulnerable.”

Applications may be made during the period up to and including 31 August 2010. After this date the scheme may be withdrawn and there is no guarantee of any future discretionary compensation schemes.

32 senior council staff volunteer for pay cut

A TOTAL of 32 of the most senior staff at Liverpool City Council have volunteered for a pay cut which will save £500,000 a year in wages. 

The 25 Assistant Executive Directors and Heads of Service who make up the ‘Leadership Group’ have agreed that bonuses worth 10% of their salary - paid for meeting performance targets - should be axed permanently. It will trim the overall cost of their wages by £350,000.  It comes after the 7 strong Executive Management Team sacrificed their 15% performance related pay - worth a total of an additional £150,000 - earlier this month.

It is believed to be the first move of its kind in local government, and is part of a series of measures designed to protect front line services in Liverpool from reductions in public spending.  The council is also offering voluntary severance to managers earning more than £40,000 a year that don’t have a front line role.

Council leader Joe Anderson said:- “I am really pleased that the entire leadership team are accepting that the difficult financial position we are in is something that they can help with, and are leading by example.  It sends out a really strong message that we are all in it as a team, ready and willing to make changes for the good of Liverpool and its people.  There is no doubt that local government budgets are going to be significantly reduced over the next few years which means tremendously difficult decisions around jobs and services.  The recent in-year cut to our area based grant and the axing of the Building Schools for the Future programme reinforce the need for radical action in these difficult times.  We have to pay the going rate to attract and retain people to lead the organisation, but it is a privilege to serve the people of Liverpool, and I am anxious that salaries are not overly inflated at a time when our residents are having to tighten their belts.”

The staff who have volunteered to give up their bonuses work right across the city council, including regeneration, education, adult services and housing.

Liverpool City Council Chief Executive, David McElhinney, said:- “The whole team feel strongly that they should offer up some of their salaries to demonstrate their commitment to the city.  Tough times lie ahead for everyone in the public sector and we all need to play our part in shielding the public from cuts to services.”

The decision comes into effect immediately.

WITNESS APPEAL - RTC - LIVERPOOL CITY CENTRE

POLICE on Merseyside are appealing for information following an RTC that occurred last Tuesday, 21 July, 2010, in Liverpool city centre.  At about 5.30pm an 85 year old female pedestrian was crossing Norton Street near to the junction of London Road when she was in collision with a blue van.  The driver remained at scene until an ambulance arrived and the woman was taken to hospital by ambulance. The woman sustained a broken hip and has been left very shaken following the incident.  The driver of the blue van waited at the scene until the ambulance arrived stating he would go straight to a police station to report the matter. However to date he has not done so.   Constable David Harrison, said:- "I am appealing for the driver of the blue van or anyone that knows him to come forward. There were a number of people in the area at the time of the incident and some of them even helped administer first aid to the woman. I would urge these people to come forward to help us with our enquiries."  Anyone with information is asked to contact Merseyside Police on:- 0151 777 4665 or Crimestoppers on:- 0800 555 111.