Board Tuesday 3 November 2015 at 5.00pm Meeting to be held at YHN House, Newcastle upon Tyne. Contact: Jill Davison (telephone: 0191 278 8624 email: jill.davison@yhn.org.uk)
AGENDA Introduction items
Timing
1
Reminder to switch off mobile phones
5.00
2
Apologies for absence
3
Declarations of Interest
Page No.
Items for Decision / Discussion 4
Quarter 2 Performance and Financials
5.05
1
5
Annual Lettings review
5.20
9
6
Appointment of Asfaleia Board members
5.35
Items for approval 7
Minutes of 22 September 2015
5.40
17
Items for Information 8i
Senior Director report
21
8ii
Universal Credit update
31
8iii
Delegated Decisions
42
8iv
Petition
44
8v
Board Forward Plan
45
8vi
Committee minutes: Finance and Resources committee 25 June Customer and Service Delivery committee 14 July Commercial committee 21 July
46 50 56
To exclude the press and public during discussion of agenda item 9-12 because of the likely disclosure of confidential information. The definitions of what is considered confidential are contained within Section 16 of the Company’s Standing Orders.
Protect not for publication – Items for Decision 9
Preparing for 2016/2017 and beyond
5.45
58
10
NCC Budget and approach to commercial development
6.15
68
11
Confidential minutes 22 September 2015
82
12
Commercial committee 21 July – confidential minutes
87
Date of next meeting 8 December 2015 5pm YHN House
4 Board 3 November 2015 Quarter two financial and non-financial performance Report by Senior Director For update 1.
Background information This report details our performance against our 2015-16 strategic targets at the end of quarter two (July-September). It also provides details of our financial performance for the same period. Appendix one is a graphical summary of those targets that are not on track (having a red status) or behind expectations (with an amber status). Within each graphic we have provided Board with the following pieces of information:
Trend information from last year (where available); Actual performance for this financial year, and Benchmarking information (where relevant).
Appendix two is an overall summary of all of the 2015-16 strategic targets. 2.
Proposals and decisions made at previous board meetings Board now receive reports on our financial and non-financial performance. Performance reports were previously presented to Audit Committee. YHN Board will now receive an update on performance on the rest of the YHN group. Our strategic targets were approved by YHN Board in March 2015 as part of the annual delivery plan. These indicators used the latest benchmarking information available (using information from HouseMark) and were developed in close consultation with officers from Newcastle City Council and reflecting tenants’ priorities.
3
Financial performance Quarter two is the last reporting period for the “original” YHN. From October, YHN will take over furniture and other trading operations from the HRA. Page 1 of 57
It is expected that YHN will generate a surplus in this financial year. Continuing its strong performance from last year, YHN has identified efficiencies of over £900k this year and has removed these from operational budgets. Savings identified in this quarter have included reductions in the Garden Care delivery costs and increased income from our Leazes Homes contract. 4
Non-financial performance
4.1
The sections below provide information on those targets which have a red or amber status at the end of quarter two.
4.2
Red: The void rent loss amount not to exceed 1.28% (£1.46m) by 31/03/2016 The void rent loss at the end of quarter two was 1.53 % and this has reduced since the end of quarter one. The Walker hub has a much higher void rent loss (at 3.46%) than the rest of the city (at 1.15%). This is due to low demand for flats, in high rise blocks, in the Walker area. Our review of the void management process continued during quarter two. A process mapping exercise identified areas of waste in the process. By March 2016 we will have improved the end-to-end process. The next steps to improve our performance are:
4.3
Complete the review of the end to end process and implement the changes; Focus resources on reducing the time it takes to re-let void properties; Develop IT systems to support the void management process; Improve use of performance management information and individual scrutiny; Review the lettable property standard and decoration assistance scheme; Ensure YHN void management and marketing of stock complements and contributes to YHN and NCC strategic housing market objectives; Review the approach to internal transfers to reduce turnover, and Continue work to understand the sustainability of specific high rise blocks.
Red: The average re-let time for all standard voids not to exceed 25 days by 31/03/2016 The average re-let time for standard voids at the end of quarter two was 39.3 days, which is above the 25 day target. The average time to re-let properties continued to reduce during quarter two. The Housing Options teams in two out of five offices reduced relet time closer to the 25 day target (Kenton, 27.1 days and Outer West, 28.7 days). Page 2 of 57
We continue to experience longer relet times for specific property types. The average relet time for high rise flats is higher in all areas, except Kenton. The improvements we plan to make to the void management process (referred to in section 4.2) will help us achieve the re-let time target for these types of properties. We will introduce a new approach to managing internal transfers (where a tenant moves between YHN managed properties) by the end of quarter four. The programme for remodelling sheltered housing accommodation should also help to improve the re-let time of voids in some of the sheltered housing blocks we manage. We provide Management Team with additional performance information to scrutinise the void management process every month. This is in response to the ongoing concern with the number of void properties we are managing and the average re-let time performance. 4.4
Red: The stock turnover not to exceed 9.2% by 31/03/2016 1,422 tenancies terminated during the first half of the year. This is higher than the same period last year, when there were 1,383 terminations, and is significantly higher than the number which would have been expected to terminate if the end of year performance indicator is to be achieved. The reason for 420 of these terminations was an internal transfer. The number of internal transfers will need to reduce, to achieve a reduction in tenancy turnover. We are scrutinising the reasons for terminations and internal transfers, to better understand why terminations occur. This will support work to determine interventions to reduce turnover. A working group has reviewed the approach to internal transfers, identifying changes that will reduce turnover. Following this review, training will be delivered to housing options staff during quarter three, with changes to the approach implemented in quarter four. The outcome should be a reduction in the number of terminations and void repair costs.
4.5
Red: Reduce sickness per full time equivalent (FTE) to 8.2 days There has been an improvement in the sickness figures for this year (4.13 days) by comparison to the same period last year (4.78 days). We have run a number of initiatives to help tackle sickness across the organisation. Some of these include:
Closer working with the YHN Health & Wellbeing group; Free NHS health check programme on site for staff; Access to free counselling via Relate; Offer of holistic therapies at reduced rates, and Adoption of NCC approach to absence management.
This improvement is positive news and shows that the initiatives that have been put in place, combined with a more efficient approach to absence management, are having a positive impact; however, we do not think that the Page 3 of 57
4
reduction in absence will enable us to meet our target of 8.2 days per FTE by the end of next March. 4.6
Amber: collection of demographic data During quarter two we collected 2.33% more data about our customers. This involved telephoning customers about whom we hold the least information. We attempted to call over 1,000 tenants and from these calls we collected 518 pieces of missing demographic data. Towards the end of September we arranged to send 5,200 tenants a letter asking them to provide us with missing demographic data. We incentivised this through a prize draw to win a tablet, internet access for one year and training from our digital champions. If we have a 30% return rate to the survey (and those responding tell us everything that is missing) we should collect an additional 3,500 pieces of demographic data. This would improve the data we hold on tenants by 4%. Officers in the sheltered housing service are also collecting missing demographic data from the tenants they work with. If they are successful in collecting this information we will collect over 500 pieces of demographic information, which would improve the data we hold on tenants by an additional 0.6%.
5
The Business Implications
5.1
Mission and Strategic Objectives: The purpose of this report is to allow Board to ensure YHN is working appropriately towards its strategic objectives.
5.2
Value for money/efficiencies: This is covered in more detail in section three of this report.
5.3
Financial Implications: This is the subject of section three of this report.
5.4
Other Resources (property, technological or human): None
5.5
Impact on services/performance: This monitoring report allows Board and staff to drive improvements to performance.
5.6
Outcomes for tenants/leaseholders: The purpose of this report is to allow Board to ensure YHN is working appropriately towards its strategic objectives which are focussed on outcomes for our landlords, tenants and their neighbourhoods.
5.7
Risk (reputation, relationship): Risks can be identified through issues raised by this monitoring report.
5.8
Environmental: None
5.9
Legal: None
Page 4 of 57
5.10
Equality and Diversity and Community Cohesion: We have a target which focuses on equality and diversity as part of a much wider strategy.
5.11
Stakeholder Involvement/consultation: Our key stakeholders were involved in setting most of the performance targets being monitored in this report. Regular meetings take place with senior NCC and Leazes Board to discuss the ongoing performance against relevant targets.
6.
Conclusion and recommendations Board are asked to:  
7.
comment on performance and refer any areas of performance that require additional scrutiny to Service and Strategy Committee.
Implementation Board will receive the report for quarter three in February 2016. Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Lisa Forrest by telephone on 0191 278 8616 or email lisa.forrest@yhn.org.uk or Louise Horsefield by telephone on 0191 278 8720 or email louise.horsefield@yhn.org.uk.
Page 5 of 57
4
Page 6 of 57
Page 7 of 57
Q1 1.58%
Q1 performance
1.53%
Improving, but still missing target
Void rent loss
Upper quartile
Median
Lower quartile
e.g.
Target
Actual performance
Target
Benchmark references (from HouseMark)
Key
YHN Performance Summary - Q2
Appendix one
1.28%
0.20%
Weekly turnover
0.18%
Q1 2.31
Q1 performance
4.13
Target
8.2
Forecast to exceed target this year despite significant improvement in August.
Sickness
Q1 0.21%
No benchmark data
39.3
Q1
0.60%
Q2
2.33%
No benchmark data
awaiting results from letter drops
Poor results so far from telephoning tenants,
Tenant demographic data
Q1 49.2
Q1 performance
Target
Our averages have improved quickly after a slow
Turnover rates reducing, but still not at target rate start, but still missing target.
Average re-let time for standard voids
Stock Turnover
25%
25
4
appendix two- Executive Summary Target The void rent loss amount not to exceed 1.28% (1.46m) by 31/03/2016
The average re-let time for all standard voids not to exceed 25 days by 31/03/2016
Performance 1.53%
39.3 days
The stock turnover not to exceed 9.2% by 31/03/2016 5.3% Reduce the number of sickness absence days per full time equivalent to 8.2 by 31/03/2016 Increase by 25% the amount of demographic data we hold about council tenants by 31/03/2016 Collect 99.49% (£112m) of rent from current and former tenants as a percentage of rent owed (excluding arrears brought forward) by 31/03/2016 The current tenant arrears as a percentage of the annual rent debit not to exceed 2.34% (32.94m) by 31/03/2016 Average cost per responsive repair must not be more than £90 by 31/03/2016 The management fee not to exceed £29.6m by 31/03/2016 Nb. The management fee will be adjusted following discussions with NCC surrounding the new Management Agreement and disaggregation Resolve 93% of Anti-Social Behaviour cases investigated by 31/03/2016
4.13 days
2.33%
98.7%
2.7% £85.65 should not be exceeded this year 95.60%
80% apprentices or Your Homes, Your Jobs finishers during 201516 to move onto education, employment or training
83%
Engage with 700 tenants to ensure that they are digitally included by 31/03/2016
229
Build at least 11 new council owned homes by 31/3/2016 5 homes built Deliver 4,061 life cycle improvements by 31/03/2016 1447 Increase the SAP rating for council properties to 66.76 by 31/03/2016
67.76
Achieve a £1m efficiency saving by 31/03/2016
£957,190
Generate a net surplus of £5m from our traded services by 31/03/2016 80% of customers who are satisfied with the condition of their neighbourhood by 31/03/2016
Forecast: £6.1m N/a
70% of customers who believe that YHN listens to their views and acts on them by 31/03/2016
N/a
87.5% customers who are satisfied with the service provided by YHN by 31/03/2016
N/a
Page 8 of 57
Board 3 November 2015 Annual Lettings Review
5
Report by Senior Director For Decision 1.
Background information
On 22 July 2015, NCC Cabinet considered a report on the findings of the Annual Lettings Review (ALR) which was completed jointly with Your Homes Newcastle. This highlighted a number of key strategic areas of work over the next 12 to 24 months. This report gives Board an overview of this work along with YHNs role in their delivery. 2.
The purpose of the Annual Lettings Review
The purpose of the ALR is to assist Newcastle City Council and Your Homes Newcastle understand the demand and supply of social and affordable rented homes to ensure the City’s Allocation and Lettings Policy and any other key documents, such as the Tenancy Strategy and Housing Delivery Plan, contribute to the Council’s and YHNs key strategic drivers. The ALR demonstrates how the City’s allocations and lettings activity is undertaken and whether we are making the best use of existing social and affordable housing stock in meeting housing need. In April 2013, Cabinet agreed the city’s current Allocations and Lettings Policy, which determines how Council housing and a significant proportion of Registered Housing Provider properties are allocated in Newcastle. This is a statutory responsibility delivered by Your Homes Newcastle, through a sub-regional partnership called Tyne and Wear Homes (TWH), which provides one point of access to all social housing across Newcastle, Gateshead, South and North Tyneside. The ALR also provides assurance that YHN and other housing providers are letting homes to those people who are in the most need of it, in accordance with the Council’s statutory obligations and is produced on an annual basis as both an operational tool and to ensure that policies are being implemented correctly. Page 9 of 57
Specifically it helps understand:
customer needs, particularly around demand and supply for various types of accommodation
YHN and Registered Social Housing Providers’ performance in the area of allocations
settlement patterns for particular needs and equality groups as well as trends in allocations, voids and stock turnover
how to make best use of stock
information needed for stakeholders and customers to help inform choice and their housing options
3.
Findings
The report to NCC Cabinet in July set out a number of key findings, which in turn has led to the developed of a detailed Action Plan. The key findings of the ALR can be summarised as: 3.1
Supply of Social Housing Social housing stock numbers have remained relatively constant. This currently stands at just under 35,000: 26,138 – NCC Owned and managed by YHN 9,771 – Registered Social Housing Providers The ward with the highest proportion of council housing is Walker with 60% of stock being social housing and the lowest North Jesmond at 1.3%. The introduction of Tyne and Wear Homes has increased access to social housing by bringing together all registered housing providers (RSP) under one choice based lettings scheme. Usually the council has the right to nominate customers to 50% of all RSP properties that become available for re-letting. The ALR has shown that in Newcastle last year, 115 additional RSP properties over and above the nomination agreement were advertised through TWH. This increased access to RSP stock by 59% compared to 2012, which was prior to the Tyne and Wear Homes partnership being introduced.
3.2
Stock turnover/demand One bedroom properties and sheltered stock have disproportionately high turnover compared to other types of property. Highest turnover rates are in the Walker Ward at 15% of stock and the lowest is in the Kenton Ward at 8% of stock. The majority reason for terminating all tenancies are to transfer to other social housing at 35% and terminations due to tenant deceased at 14%. Sheltered Housing (non-Extra –Care) has the highest turnover of property Page 10 of 57
types at 36%. 3.3
How applicants access Tyne and Wear Homes A sample of applicants was undertaken to help understand how the introduction of web-based services have affected customer experience. Findings suggest most applicants find it easy to join and participate in the scheme. However, it was found that a significant number of applicants (1,219 of the 5,700 on the records at March 2015) do not complete the application process. This may be due to issues around IT literacy or web layout. Work is underway to understand this and further develop systems and processes to improve completions. Further analysis of data showed 30% of registered applicants who have applied for the scheme are not choosing to put bids in for properties. Further work by TWH is required to understand the reasons why applicants choose not to bid and determine help in addressing issues.
3.4
Applicant Profile An analysis of applicant profile showed:
38% of applicants were in employment; 28% retired or unable to work; 18% at home; and 16% unemployed 95% of applicants have an annual income of less than £20,000.
Approximately 4% of applicants were either ineligible or disqualified from joining TWH. The most common reason for this was due to rent arrears and the next most common reason was due to evidence of past anti-social behaviour. At the end of March 2015, the total numbers of applicants who registered their interest for housing in Newcastle was 5,700 of which 44.7% were existing council tenants. The drivers for this relatively high proportion of tenants seeking to move will be explored as part of the Action Plan. 3.5
Housing Need The Councils Allocation and Lettings Policy use a banding system to identify housing need. Band A signifies an immediate and exception housing need, B an urgent housing need, C a medium housing need and D low or no housing need. As of the end of March 2015, 14% of applicants had a recognised housing need in Bands B or C. There were no applicants in Band A. Applicants in Band D accounted for 86%. Of those applicants with a housing need, the most significant need to move was on the ground of health or disability. This accounted for 31% of all applicants in Band A, B or C. Page 11 of 57
5
The property size required by applicants as of the end of March 2015 was as follows: 3.6
58% of applicants need 1 bedroom 28% 2 bedrooms, 10% 3 bedrooms 4% 4 or more bedrooms
Demand/Viability of housing stock The ALR showed that there is a high demand for : 1, 2 and 3 bedroom bungalows ground floor flats; 2, 4, 5 and 6 bed houses Whilst there is lower demand for : communal entrance flats 2 and 3 bed multi storey properties bedsits Demand for 3 bed houses has fallen significantly since the introduction of welfare benefit reform. Further research is required through the Action Plan to understand why particular types of property in certain locations are in less demand. This work will help to inform future interventions. Lower demand properties, classed as an ‘always available’ have provided an indication of where there are sustainability issues for particular property types by area. Whilst most housing areas of the city have some properties in this category, multi-storey flats and communal entrance flats are in least demand. Multi-storey flats in Walker and communal entrance flats in West Denton feature predominately. This information has been aligned with Net Present Value and Sustainability analysis to inform future options and investment.
3.7
Lettings Over the last 5 years the number of properties let have remained fairly consistent, apart from in 2013-14 when the bedroom tax element of the Welfare Reform Act was introduced:
2,850 (2014-15) 3,239 (2013-14) 2,925 (2012-13) 2,677 (2011-12) 2,737 (2010-11) Page 12 of 57
Applicants in the lowest need (those in Band D) are able to access most property types and sizes across the city. Property types that are in more limited supply and high demand include: 1, 2 and 3 bed bungalows across the city 4 and 5 bed houses in the East End, Kenton and Outer West hub areas 3 bed houses in the Kenton hub There is a shortage of larger properties (4+) for applicants with a housing need in specific areas of the City. Housing management lets, where properties are directly let to applicants without going through the normal advertising process, have fallen from 5% to 1%. 4.
Key Areas of Work
The Action Plan developed as a result of the ALR sets out the following areas of work to be carried out: 4.1
Updating the Councils Allocations and Lettings Policy Minor changes are being made to the policy to comply with recent changes to legislation, managing financial risk, making best use of stock and supporting customers in relation to pre-tenancy support. Specifically, this will support YHN in ensuring new customers are tenancy ready; can meet their housing costs and responsibilities set out in their tenancy agreement. These updates will also give YHN the ability to introduce processes to reduce internal transfers and clarify our preference for rent being paid by Direct Debit to maximise income to the HRA.
4.2
Reviewing the Council’s Tenancy Strategy The Housing and Planning Bill 2015 details the expectation for Local Authorities to update their Tenancy Strategy to include fixed term tenancies. YHN will support the Council to introduce their approach and ensure they are used to provide flexibility and support to specific groups of new tenants and make best use of stock.
4.3
Understanding issues of low demand and what solutions can be put in place Through the Tyne and Wear Homes Partnership the Council’s Fairer Housing Unit and YHN will be commissioning research to understand the causes of low demand to help inform the asset management plan and develop plans to determine appropriate interventions. The research will also scrutinise customer profiles against the wider subregional population to determine behaviours in terms of mobility and the identification of unmet need or new markets. In addition, the research will underpin activity currently underway to look at Page 13 of 57
5
reasons for high refusals for some properties and locations. Following completion of the research a bespoke marketing plan across the sub-region will be put in place to tackle low demand stock and enhance the current housing options advice provided to customers. 4.4
Revising NCC’s Tenancy Agreement The review of the Tenancy Agreement will support the ALR in relation to setting out clear expectations in relation to starting and ending a tenancy, along with other changes which will provide opportunities to support the health and wellbeing of existing tenancies. For example, introducing changes which allow pets in some property types.
4.5
Carrying out the next ALR of all lettings and allocations activity for 2015/16 Work will also be undertaken to ensure lessons learnt are fed into the next ALR, along with agreement of future data provision, data quality measures and performance indicators.
4.6
Improved Digital Access for Customers As part of the Tyne and Wear Homes Partnership, the Fairer Housing Unit and YHN are leading on work which seeks to further standardise approaches across the sub-region as well as assess potential delivery models to bring about improved efficiency and value for money. This work will inform ongoing investment in IT systems and on-line services to customers. Board is recommended to delegate monitoring of the action plan to Service and Strategy Delivery Committee.
4.7
Time Limited Committee (TLC) Although not part of the ALR action plan the findings of the review and other data relating to allocations and voids leads to a conclusion that more detailed analysis of the issues is required and that a YHN Time Limited Committee would be a useful mechanism to oversee this work. It is recommended that Board agree to establishing the committee and to appoint Paul Dutton as the Chair. If Board agree to establish a TLC the terms of reference will be agreed at its first meeting however it is anticipated that it will focus on understanding housing mobility and customer behaviours, reducing the number of empty homes and turnover in stock to ensure we maximise income to the HRA and YHN.
Page 14 of 57
5
Other considerations
This activity sits alongside and is informed by:
Ongoing welfare reform and Universal Credit roll out and how this impacts on pre and post tenancy support, affordability and start and end of tenancies.
1% reduction in social rents over the next four years and the impact this will have on demand for accommodation and investment opportunities. YHN are in discussions with NCC about the likely impact upon the Housing Investment Programme. Early indications are that the programme will be reduced by around £28m across the next five years. The impact of these discussions will be the subject of a detailed paper to Board in December 2015.
Government’s ‘Pay to Stay’ proposal which will require social housing providers to assess the income of tenants with a view to charging ‘near market rents’ to households with income in excess of £30k. Any income raised by this measure is to be handed to HMR Treasury, although Registered Social Landlords are permitted to keep the additional revenue.
6.
The Business Implications
6.1
Mission and Strategic Objectives: The work leading from the ALR makes a significant contribution towards YHN’s strategic objectives.
6.2
Value for money/efficiencies: A number of areas of are linked to running ourselves well and seeking out innovative service delivery models to maximise income to the HRA and YHN.
6.3
Financial Implications: Investment outside of existing budgets will be required for some areas of work. Business cases will set out where there are financial implications for the sub-regional through the Tyne and Wear Homes Partnership, for the Councils HRA or from YHN Budgets.
6.4
Resources (financial, property, technological or human): Additional resources in relation to staffing capacity will be required for some activity. This will be met through existing staffing levels. There may be a requirement for additional investment in research or IT development, subject to a detailed Business Case.
6.5
Impact on services/performance: It is expected that the Action Plan will lead to improvements in relation to performance and service quality.
6.6
Outcomes for tenants/leaseholders: There will be improved services to tenants and leaseholds in housing need.
6.7
Risk (reputation, relationship): The Tyne and Wear Homes partnership is the main vehicle for many of the service improvements. There is a risk both financial and reputational, as well as undermining existing relationships should the partnership breakdown. However, there is agreement to strengthen the Management Agreement on which the partnership is based Page 15 of 57
5
to minimise any associated risk. 6.8
Environmental: Many of the areas of improvement relate to more accessible services, reducing waste and duplication so there are not expected to be any negative environmental impact.
6.9
Legal: Consultation and involvement with relevant legal representatives are ongoing to ensure that areas of work do not undermine statutory duties.
6.10
Equality and Diversity and Community Cohesion: The work being undertaken aims to improve access to as wide a group as possible so there is no expected impact on equality, diversity or community cohesion. However, where required full impact assessments will be carried out.
6.11
Stakeholder Involvement/consultation: The views of stakeholders play a significant part in these areas of work so there will be full consultation and involvement in service improvement where required.
7.
Conclusion and recommendations
Board is recommended to:
Note the areas of work to be agreed by Cabinet
Comment on any other areas of work relevant to YHN
Delegate responsibility for monitoring the ALR Action Plan to Service and Strategy Delivery Committee.
Agree to establish a Voids Time Limited Committee
8.
Implementation and Next Steps
A report will be presented to Council’s Cabinet on 25th November 2015 seeking approval for the work, which will be monitored through the Council and YHNs performance management framework, with any improvements fed into the 2016/17 ALR for ongoing evaluation. Background Papers None Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact John Urwin, Head of Housing Options, by telephone on 0191 277 2024 or email john.urwin@yhn.org.uk
Page 16 of 57
Board 22 September 2015 (5.15pm to 6.40pm) Present: O Grant (Chair), P Dutton, L Doherty, V Dunn (until 6.10), J McCarty, A Mirza, T Moore, M Page, J Reid, P Scope, J Streather, L Stephenson, D Slesenger (until 5.35), E Snaith, M Talbot, L Wilson. In attendance: J Davison
Company Secretary
N Scott
Senior Director & Director of Tenancy Services
S Breslin
Assistant Chief Executive & Director of Corporate Services
D Langhorne
Director of Property Services
L Forrest
Head of Finance
D Creighton
Executive Assistant to the Chief Executive
J Urwin
Head of Housing Options
J Clifford
Financial Controller
R Clark
Care Services Manager
G Ellingham
Head of IT
I Gallagher
Head of Property Maintenance
H Garbutt
Environmental Services Manager
M Burn
Head of Support & Care
P Corcoran
Lead Customer Involvement Officer
G Clark
Independent Chair of Audit Committee
C McMullen
Newcastle City Council
A Senior
Newcastle City Council (until 6.05)
N Shukla
Observer (until 5.40)
410
WELCOME The Chair welcomed Board members to the meeting, and special welcome to Councillor David Slesenger who has been appointed by Newcastle City Council to the Board replacing Councillor D Down. Cllr Slesenger served as a YHN Board member between 2006 and 2013 and the Chair welcomed his return.
411
APOLOGIES Apologies were received from P Dibbs, D Huddart, J Purvis
412
DECLARATIONS OF INTERESTS V Dunn and A Senior declared an interest in agenda item ten on the confidential part of the meeting. Page 17 of 57
7
413
AUDIT COMMITTEE ANNUAL REPORT Submitted: Report by the Independent Chair of Audit Committee (previously circulated, copy attached to Official Minutes). George Clark presented the report which provided a summary of the work of the Audit Committee from September 2014 to August 2015. The committee considered a range of regular items over the period and the report highlights these areas. George Clark gave assurances to the Board that significant areas such as performance and risk are monitored by the committee which received full support from officers in attendance. George Clark expressed his thanks to both internal and external audit for their work over the period in providing reports and assurances to the committee. Questions/Comments A Board member queried the review of gifts and hospitality undertaken which stated there were no major issues and enquired whether there were any minor issues. George Clark responded that the only issue to arise were the officers completing forms retrospectively and that measures had been put in place to address this. A Board member queried the Internal Audit Progress reports and the concern on timescales taken to implement recommendations. George Clark responded that it was always difficult for managers to implement some of the recommendations especially when working with third parties but it is improving and managers are working closely with internal audit when setting timescales for implementing recommendations and Audit Committee will continue to keep a close eye on these. The Chair updated the Board that she and the Chair of Audit Committee had met last week and had a useful discussion with regard to the changing structure, and agreed that Audit Committee will assist and support the new arrangements. RESOLVED that the Board; 
414
Received the report
VICE CHAIR AND AUDIT COMMITTEE CHAIR APPOINTMENTS Submitted: Report by the Chair (previously circulated, copy attached to Official Minutes). The Chair highlighted the proposal to appoint the Chair of Audit Committee for a period of three years in line with Board member appointments, and this would also be subject to a nine year maximum. RESOLVED that the Board;  approved the appointment of L Stephenson and L Doherty as Vice Chairs of the Board with effect from 22 September 2015; Page 18 of 57
approved the appointment of G Clark as Chair of the Group Audit Committee for the period 22 September 2015 until the date of the AGM in 2018; agreed that a special responsibility allowance of £1,000 per annum continue to be paid to G Clark for the period of his appointment. 415
COMMITTEE AND SUBSIDIARY MEMBERSHIP Submitted: Report by the Chair (previously circulated, copy attached to Official Minutes). RESOLVED that the Board; agreed the committee and subsidiary membership and appointment of committee chairs and vice chairs, as set out in Appendix One; and agreed the appointment of Board members to other committees as set out in clause 4.2 of the report for the period September 2015 to August 2016; and note the record of Board member attendance for the period September 2014 to August 2015 as attached at Appendix Two. note the change in council nominated representative, to Cllr David Slesenger.
416
MINUTES OF 25 AUGUST 2015 RESOLVED that the Board; Considered the minutes of the meeting held on 25 AUGUST 2015 and approved them as a correct record.
417
CHAIRS ITEMS The Chair reported that she had completed the annual Board member reviews, and that the discussions had been very interesting. It was clear that there were specific areas which Board members wished to focus on in the future. These were; to be more strategic and innovative in our thinking going forward, time limited committees to look into the heart of issues such as health and housing and what YHN’s role is, tenant engagement being able to listen and talk more to tenants, and work on the issues with void properties. These would all be discussed further with officers. The Chair commented on the relationship with the City Council and praised their commitment to making things happen, especially with the loan agreement and Business Transfer Agreements, which appear later on the agenda, these were required to certain deadlines and NCC officers worked to achieve the required outcome. The Chair expressed that we had come a long way together and whilst there are unclear times ahead regarding what impact will be of government policy, YHN management team are already starting to look at this. The Chair also reported that John Lee was due to speak to the Board on 6 October regarding his work at NCC but unfortunately this date needed to be cancelled due to a clash with the Health and Wellbeing Board, which many councillors and herself needed to attend. Board members were asked to cancel 6 October from calendars and arrangements would be confirmed in due course. The Chair reported the great news that the SHEF assessment had been rated Page 19 of 57
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as excellent. The Chair thanked all Board members who were involved in the assessment interviews, Marion Talbot, Tony Moore, John Reid and Nitin Shukla. The Chair also extended thanks to all the staff in the organisation who worked really hard to prepare and complete the assessment. 418
ITEM FOR INFORMATION RESOLVED – That the following items be received for information: i)
Senior Director Report
ii)
Delegated Decisions
iii)
Board Forward Plan
iv)
Committee Minutes - Commercial Committee 12 May - Audit Committee 9 July
EXCLUSION OF PRESS AND PUBLIC RESOLVED – That in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.
……………………………………….. Mrs O Grant Chairman 3 November 2015
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Board 3 November 2015 Senior Director’s Report For Information 1.
Introduction
1.1
This report aims to bring Board Members up to date with some of the activity that YHN has been involved with recently as well as with national developments that may be of interest to them as Board Members. This report includes: Housing and Planning Bill 2015 Tribunal blow to bedroom tax tenants Download the YHN App Café opened at Palatine
2
Housing and Planning Bill 2015
2.1
On 13 October the government published the Housing and Planning Bill 2015 setting out its proposals to increase home ownership and boost levels of house building. The Bill has received its first reading, which is the first stage of the legislative process. The contents of the Bill are therefore still subject to change as it completes its passage through both the House of Commons and the House of Lords.
2.2
The headline proposals include Extension of the right to buy to housing association tenants whereby the government will make a payment to the association to compensate it for the cost of the discounts on offer. The National Housing Federation and the government have agreed a voluntary scheme. Sale of high value vacant local authority housing. The government previously announced a plan to require local authorities to sell high value homes as they become vacant, some of the receipts will be used to fund the extension of the right to buy to housing association tenants. The Bill enables the government to set out a definition of a ‘high value’ home. The Page 21 of 57
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Bill will also allow the government to estimate the amount of money it would expect each local authority to receive in each financial year from sale of high value homes and authorities will then be required to pay this amount to the Treasury. Details of both the definition of high value homes and the mechanism by which the government will calculate the amount owed by each stock retaining authority will be published at a later date. High Income Social Tenants (often referred to as ‘Pay to Stay’). The Bill will require social tenants with a higher income to pay a higher rent. Initially a higher income will be defined as a household earning more than £30,000 per year, or £40,000 in London. Details of how increased rents will be calculated will be released at a later date. The Bill will require tenants to declare their income to their landlord and will also allow social landlords to share data with HMRC in order to verify that the information they have been given is correct. Local authorities will be required to return any additional rental income generated by the policy (minus administrative costs) to the Treasury. Starter homes. In his speech to the Conservative Party Conference, David Cameron promised to do away with planning rules that require property developers to build affordable homes for rent in a bid to increase the building of homes. The change is seen as critical to the government reaching its target of building 200,000 starter homes over this parliament and has been long demanded by private sector developers. The Bill will create a new duty on all local authority planning departments to promote the supply of starter homes in their area. It will also allow the government to set regulations requiring starter homes to be included on residential sites as a condition of securing planning permission. As with other aspects of the Bill these regulations will be issued at a later date. Other significant measures Rogue Landlords. The Bill includes a package of measures to tackle rogue landlords including Allowing authorities to apply for a banning order preventing a particular landlord from operating if they have committed certain housing offences Creating a national database of rogue landlords, to be maintained by local authorities Allowing tenants or local authorities to apply for a rent repayment order where a landlord has committed certain offences. The tenant could be repaid up to a maximum of 12 months’ rent. Planning consent. The Bill gives government the powers to grant automatic planning consent on any land allocated in a development plan document. The government says it will currently only use this power for land identified on brownfield sites. The Chartered Institute of Housing and National federation of ALMO’s have published high level initial briefings on the Bill, both are attached for information. Page 22 of 57
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Bedroom tax tribunal
3.1
The vast majority of appeals against the bedroom tax on discrimination grounds are now likely to fail following a landmark tribunal ruling. An upper tier tribunal – which is binding on other British courts – ruled in September that all first-tier tribunals must follow a High Court ruling in favour of the bedroom tax, which means more than 100 current claims against the Policy are unlikely to succeed. The tribunal ruled in favour of the government’s policy against a disabled Inverclyde housing association tenant and concluded that all courts must follow a High Court ruling known as ‘MA and Ors’. The ‘MA and Ors’ High Court decision in 2013 ruled that the bedroom tax was not a breach of the European Convention of Human Rights (ECHR) because, although it was discriminatory against disabled people, it was justified because it was government policy. A number of tenants had successfully appealed against the bedroom tax on the grounds that a benefit is a ‘possession’, and that the policy was discriminatory in taking benefits away, breaching human rights. This High Court ruling means this route of appealing against the policy is now closed. Estimates suggest there could be more than 100 similar claims waiting to be heard in the courts.
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Download the YHN App
4.1
The YHN app has loadsof great features that customers can access for free simply by searching for YHN in their app store or Google play store (depending upon their device), and clicking to install. The app is continually being improved, but features currently include: -Home Repairs; report and track non-emergency repairs. -Pay your Rent; direct link to Civica payment engine. -Other Rent Services; view rent account, help paying rent, set up a direct debit. -Find a Home; apply for rehousing, bid for property, check application progress. -Anti-Social Behaviour; report new cases of non-emergency ASB. -Environmental and Waste; report and track non-emergency environmental and waste complaints. -Support in your tenancy; links to external support information from the Money Advice Service and Universal Credit. Links to YHN support on benefit changes, YHN Advice and Support Service, Get Online Newcastle and employment opportunities.
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-YHN Services; latest service information from Customer Involvement, Employability Services and Advice & Support Service. -Latest News; Links to Facebook and Twitter feeds and latest Homes & People. -Employment opportunities; Current YHN job opportunities, links to Universal Job Match, Apprentice Opportunities, Your Homes Your Jobs scheme, Newcastle Futures and Make your own money. -Complaint or compliment; report new non-emergency complaint or compliment. -Contact Us; Contact a number of our services directly. -Feedback; provide feedback on the app and tell us what else we could develop. Over 1000 customers have downloaded the app, and we have had some excellent feedback from users. 5
Wicker Chair Coffee House and Bistro – spread the word
5.1
The Wicker Chair based at Palatine is now open to the public as well as YHN employees and Board Members. As you know this is a community café run by Jobs, Education and Training (JET). It has a new chef and new menu and is open on Saturdays as well as week days. Pop along and support our partners – it would be really appreciated. As well as providing a service to customers they are helping to provide skills and education to make people more employable.
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Diane Creighton, Executive Assistant to the Chief Executive on 0191 278 8701 or diane.creighton@yhn.org.uk
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What you need to know about the Housing and Planning Bill 2015 The government has published the Housing and Planning Bill 2015 setting out its proposals to increase home ownership and boost levels of house building. The Bill has received its first reading, which is the first stage of the legislative process. The contents of the Bill are therefore still potentially subject to change as it completes its passage through both the House of Commons and the House of Lords.
to fund the extension of the right to buy to housing association tenants. •
The Bill will enable the government to set out a definition of ‘high value’ homes and will create a duty on local authorities to consider selling homes that meet this definition when they become vacant.
•
The Bill will also allow the government to estimate the amount of money it would expect each individual authority to receive, in each financial year, from sales of high value homes. Authorities will then be required to pay this amount to the Treasury.
•
Details of both the definition of high value homes and the mechanism by which the government will calculate the amount owed by each stock retaining authority will be published at a later date.
This briefing for CIH members summarises the main measures as currently set out in the Bill.
Headline proposals Extension of the right to buy •
•
Following a deal struck between the government and the National Housing Federation, whereby housing associations will extend the right to buy to their tenants on a voluntary basis, the Bill will enable the government to make payments to associations to compensate them for the cost of the discounts on offer.
•
The government has previously announced that it intends to build 200,000 starter homes exclusively for first time buyers under the age of 40, for sale at 20 per cent below normal market prices. The Bill will create a new duty on all local authority planning departments to promote the supply of starter homes in their area.
•
The Bill will also allow the government to set regulations requiring starter homes to be included on residential sites as a condition of securing planning permission. These regulations will be issued at a later date.
The Bill will also allow the government to publish ‘the home ownership criteria’ (a set of rules for the extension right to buy) and to direct the Homes and Communities Agency to monitor associations’ compliance with the criteria.
Sale of high value vacant local authority homes •
Starter homes
The government has previously announced a plan to require local authorities which have retained ownership of their stock to sell high value homes as they become vacant. It intends to use some of the receipts from these sales
Learn with us. Improve with us. Influence with us. www.cih.org
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High income social tenants: mandatory rents (pay to stay) •
•
•
The Bill will require social tenants with a higher income to pay a higher rent. Initially a ‘higher income’ will be defined as a household earning more than £30,000 per year, or £40,000 in London. However the government will set out details of how increased rents will be calculated at a later date. The Bill will require social tenants to declare their income to their landlord and will also allow social landlords to share data with HMRC in order to verify that the information they have been given is correct.
This includes:
•
allowing local authorities to apply for a banning order to prevent a particular landlord/letting agent from continuing to operate where they have committed certain housing offences
•
creating a national database of rogue landlords/letting agents, which will be maintained by local authorities
•
allowing tenants or local authorities to apply for a rent repayment order where a landlord has committed certain offences (for example continuing to operate while subject to a banning order or ignoring an improvement notice). If successful the tenant (or the authority if the tenant was receiving universal credit) may be repaid up to a maximum of 12 months’ rent.
The Bill will require local authorities to return any additional rental income generated by the policy (minus administrative costs) to the Treasury.
Other significant measures •
•
•
The Bill will increase the government’s powers where a local authority does not have an up to date local plan. The government will be able to direct an individual authority to prepare or revise its local plan, to submit it to independent examination, to publish any recommendations from that examination and to consider whether they should be adopted. The Bill will give the government powers to grant automatic planning consent on any land allocated in a development plan document the council’s role would then be to agree any technical details. The government says that currently it would only use this power for land identified on its new brownfield registers.
•
The Bill will allow a private landlord to regain possession of a property they believe to have been abandoned without a court order. They will be able to do this by sending two notices at different times requesting a written response from the tenant. Before they can send the second notice rent arrears must have been accrued.
•
The Bill will put a duty on local authorities to ensure they have enough plots of land available for self build to meet local demand.
The Bill includes a package of measures to help tackle rogue landlords in the private rented sector.
Learn with us. Improve with us. Influence with us. www.cih.org
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What does CIH think? Overall response The government’s focus on getting new homes built is very welcome. In England we are currently building fewer than half the homes we need to keep up with our growing population, and the result is a housing crisis in which millions of people are struggling to access a decent home at a price they can afford. We know the government is committed to boosting housing supply, and we support ministers’ ambition to give people the opportunity to achieve their aspiration of home ownership, but we must make sure that the new homes we build are a mix of tenures (home ownership, shared ownership, private and social rent) so that people on lower incomes are able to benefit too. The government has made its commitment to home ownership very clear – but what about people who can’t afford to buy, even with government support? Right to buy and the sale of high value council homes Like many others, we are waiting to see the full details - full compensation for housing associations will be absolutely vital if they are going to be able to build more affordable homes for people who can’t afford to buy. The government has said the policy will be funded by the sale of empty high-value council homes. If affordable housing is being sold, it is absolutely crucial that it is replaced on the same terms. Without extra funding, we fear this may not prove to be the case. Pay to stay We’re concerned that this could prove to be quite complex and expensive for social landlords to administer, so it will be important to get the detail right through the government consultation announced last week. There is also a risk that it could make social housing too expensive for people on relatively low incomes – for example, a couple who both earn £15,000 a year would be subject to this policy outside London. The policy will need to be designed very carefully to make sure it is not discouraging people from either finding work or securing a better paid job. Tackling rogue landlords Too many people living in the private rented sector are forced to put up with substandard homes or being mistreated by a minority of rogue landlords, so these proposals to deal with the worst parts of the sector are very welcome. However, it will be vital to make sure that local authorities are given the resources they need to enforce the new measures.
Find out more CIH is holding a Housing Bill Summit on 27 October. To find out more about the event, or to book your place visit our website.
Learn with us. Improve with us. Influence with us. www.cih.org
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The Housing and Planning Bill NFA member briefing Introduction The Government presented its Housing and Planning Bill to Parliament on 13th October 20151. As expected it contained enabling legislation to allow the government to introduce a number of widely trailed policy changes. This includes the voluntary deal with Housing Associations on extending Right to Buy discount levels to Housing Association tenants, the sale of Local Authority High Value Voids and Pay to Stay. It also covers legislation for Starter Homes, self-build and custom housebuilding as well as measures to tackle rogue landlords in the private sector, compulsory purchase orders and wider planning issues.
Key Issues for council housing and ALMOs The key part for ALMOs and councils on social housing is Part 4 of the Bill.
Chapter 1: Implementing the Right to Buy on a voluntary basis As the NHF secured a voluntary deal with the Government on the introduction of the Right to Buy to Housing Association tenants this legislation only covers areas to ensure that the Government can pay “private registered providers” a grant in respect of right to buy discounts” through both the HCA and the GLA, as well as enabling the monitoring of the policy by the Regulator of Social Housing via a “home ownership criteria”. There are currently nine ALMOs who are registered as “private registered providers” for whom this enabling legislation may apply and who may be covered by any new homeownership criteria. The NFA has been in touch with the effected ALMOs and is arranging a separate meeting to discuss the issues.
Chapter 2: Vacant High Value Local Authority Housing This chapter sets out the enabling legislation to ensure local housing authorities make payments to the Secretary of State in respect of a determination through the subsidy system. The amount will be based on an estimate of the market value of the local housing authority’s “high value housing that is likely to become vacant in that year”. We are aware that DCLG has asked all LAs for detailed (postcode level) data on values to inform this work on the regulations This confirms that the payment to the government will be set out on a formula basis which will not necessarily reflect the actual level of high value voids or sales in any one year. The devil will be in the detail of how this works for each local authority (to be set out in regulations). The definition of “high value” will also be set out in regulations at a later date. That definition may be done in a different way in different areas and again we will need to look carefully at the detail to see how it will impact in different regions and in different housing markets. The Government has allowed for consultation on the formula to be used and for costs and “other deductions” to be made before paying the amount over to the Secretary of State. The NFA will respond to the consultation on this formula when it is published. 1
The full text of the Bill and the accompanying explanatory note can be found at: http://services.parliament.uk/bills/201516/housingandplanning/documents.html (Part 4, the section on social housing starts on page 26)
National Federation of ALMOs, Octavia House, Westwood Way, Coventry, CV4 8JP Telephone: 024 NOT 7685 1729 Email: info@almos.org.uk Web: www.almos.org.uk PROTECTIVELY MARKED National Federation of ALMOs Ltd Registered in England Reg No 6781539
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The indications are that this government is re-introducing the HRA subsidy system for capital as opposed to revenue payments as it looks like there will be individual determinations against which councils will be able to appeal but essentially the draft will then be approved each year to stipulate the coming year's payments (as used to happen under the old system). This seems to indicate that all councils will have to pay something rather than the specific high value LAs that had been identified in the various reports to date, although that is not yet certain. There does also seem to be legislation to ensure that councils cannot get around these measures by doing any stock transfers to other social housing providers as if they do they will still have to make a payment based on the stock they did hold (s63). Alongside the formula for payment the legislation also includes “A duty to consider selling vacant high value housing”. This indicates that the principle is as important for this government as the actual money it needs to pay for other policies. The Secretary of State may exclude some housing from that duty, which again will be in the regulations. The NFA will need to consider what exemptions are needed for members to continue to meet housing needs in their areas, for example we may need to argue for some local discretion if the property is adapted for use by disabled residents or specifically for housing the elderly and for other niche housing needs – e.g. it is the only 6 bed in the stock and there are 10 families waiting for it. However, in reality if the council has to make a payment based on a formula this may be the only way they can realistically raise the cash.
Chapter 3: Reducing Regulation Again this is a brief piece of legislation to enable further regulations for reducing regulatory control over private registered providers as part of the deal the NHF made with the Government on introducing voluntary right to buy to the sector.
Chapter 4: High Income Social Tenants: Mandatory Rents (Pay to Stay) This chapter introduces enabling legislation to allow for regulations which make provisions about the levels of rent a registered provider of social housing must charge a high income tenant of social housing in England. In effect this makes the Pay to Stay policy compulsory rather than voluntary as it is at the moment. The regulations will be laid at a later date and will include the ability to charge a different rent for people with different incomes and/or for social housing in different areas. This chapter also enables regulations to give providers of social housing the power to require income information from tenants and the power for HMRC to disclose income information to “a registered provider of social housing” There is an issue (which the NFA will explore further) as to whether this would cover non RP ALMOs or just their councils. There is also provision for regulations to require registered social housing providers to charge a market rent to any tenant who fails to disclose their income. Enforcement will be through the rent regulations by the Social Housing Regulator. This legislation also ensures that the planned 1% rent cuts to social housing rents will not apply to the higher rents charged to High Income Social Tenants (HIST).
National Federation of ALMOs, Octavia House, Westwood Way, Coventry, CV4 8JP Telephone: 024 7685 PROTECTIVELY 1729 Email: info@almos.org.uk Web: www.almos.org.uk NOT MARKED National Federation of ALMOs Ltd Registered in England Reg No 6781539
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NFA next steps As much of this Bill is enabling, high level legislation, we must wait for the detail in the regulations to understand the full impact on ALMOs and their councils. However, in the meantime the NFA will seek to influence MPs during the debates on the Bill and highlight the potential issues for ALMOs and councils in their constituencies. We held two very successful MP events this week, as the Housing Bill was laid, and we will be using those new contacts and relationships to inform MPs of our concerns and to seek a meeting with the Housing Minister as soon as possible. We will also prepare a briefing for MPs ahead of the second reading of the Bill, expected in the week commencing 26th October and will be discussing the issues with our colleagues at ARCH, the LGA and CIH and working together on this as much as possible. We will look at amendments we could ask MPs to propose and support whilst making the general case about this legislation dismantling the HRA self-financing settlement and principles which the previous Conservative Housing Minister introduced. We will also be making MPs aware of the issues, such as the 1% rent cut, in other policy or legislative changes which also impact on ALMO and councils’ ability to build new homes, provide wider services on worklessness etc. and for some manage and maintain the existing stock. We will be focusing on these issues in the coming weeks and will keep members up to date on any significant developments. In the meantime if you have any further questions or comments please do not hesitate to contact Chloe Fletcher at chloe.fletcher@almos.org.uk or on 07515 050207.
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National Federation of ALMOs, Octavia House, Westwood Way, Coventry, CV4 8JP Telephone: 024 7685 PROTECTIVELY 1729 Email: info@almos.org.uk Web: www.almos.org.uk NOT MARKED National Federation of ALMOs Ltd Registered in England Reg No 6781539
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Board 3 November 2015 Universal Credit Report by Senior Director For Information 1.
Background
1.1
This report is to provide Board with an update on Universal Credit (UC) and a summary of key activity that has been on-going since the board report in July 2015. This details the progress the implementation project has made and learning from the initial roll out for single people on UC.
1.2
Universal Credit was introduced in April 2013 in certain pathfinder areas of North West England. Since October 2013, it has progressively been rolled out to other areas. It is currently available in 359 Jobcentre Plus offices nationwide.
1.3
UC is a new benefit which aims to reduce poverty, by making work pay, and to help claimants and their families to become more independent. It also aims to simplify the benefits system by providing a single payment based upon the circumstances of the household. Support for housing costs, children and childcare costs are integrated in the new benefit. It also provides additions for disabled people and carers.
1.4
The following benefits will be abolished as Universal Credit rolls out.
Income-based Jobseeker’s Allowance
Income-related Employment and Support Allowance
Income Support
Working Tax Credit
Child Tax Credit
Housing Benefit
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The main differences between Universal Credit and the current welfare system are:
Universal Credit is available to people who are in work and on a low income, as well as to those who are out-of-work
most people will apply online and manage their claim through an online account
Universal Credit will be responsive – as people on low incomes move in and out of work, they will get ongoing support
most claimants on low incomes will still be paid Universal Credit when they first start a new job or increase their part-time hours
claimants will receive a single monthly household payment, paid into a bank account in the same way as a monthly salary; support with housing costs will usually go direct to the claimant as part of their monthly payment
2
Implementation
2.1
Following its introduction in April 2013, UC has been progressively rolled out. The numbers of new UC claimants are increasing on a weekly basis. 216,088 people had made a claim for universal credit up to 17 September 2015 145,239 (10 September 2015), attended an initial interview, accepted their claimant commitment, and moved on to UC; 125,877 people were in receipt of UC as of 10 September 2015. Of these, 38,109 (or 30 per cent) were in employment and 87,768 (or 70 per cent) were not in employment.
2.2
From 27th April, Newcastle Job Centres started to receive new claims for UC for people who otherwise would have claimed Job Seekers Allowance. We are aware that 956 residents of Newcastle have claimed UC as shown in the table below.
Newcastle City Newcastle West Newcastle East
Age Range 16-24 25-49 50+ 16-24 25-49 16-24 25-49
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Male
Female
232
112
276
123
164
49
2.3
Acceleration of Universal Credit The government’s driver to accelerate other groups being moved onto UC is the digital service. The digital service is currently being tested and has been implemented within Sutton, Croydon and Southwark. The Department for Work and Pensions (DWP) have announced to ‘make scalable’ UC in eight jobcentres within eight local authorities nationwide from November 2015 – April 2016. We have been made aware one job centre in Newcastle (Newcastle City, Cathedral Square) will start to test the digital system from February 2016. For YHN tenants, this will mean that any new claims for Income related Employment Support allowance; Income Support and new claims for Housing benefit and tax credits will now be treated as Universal Credit claims and administered by the DWP. We are currently waiting for feedback from the DWP of anticipated numbers of those who may be affected and will provide board with an update as soon as we are able.
3
Welfare Reform Challenges 2016
3.1
In July 2015, Chancellor George Osborne announced a number of changes to cut the cost of the welfare system to be introduced in April 2016. Those that will adversely affect tenants are;
3.2
A reduction in the benefit cap An increased tax credit withdrawal rate from 41% to 48% A reduction in the income threshold for working tax credit from £6,420 to £3,850 Work Allowances lowered or eliminated under UC Job Seekers Allowance, Employment Support Allowance and Income Support rates frozen for 4 years Child Benefit rates frozen for four years
Welfare Reform and Work Bill The Welfare Reform and Work Bill is currently working its way through parliament and the purpose of the Bill is to deliver the government’s commitment to freeze the main rates of the majority of working-age benefits, tax credits and Child Benefit, and to reduce the level of the benefit cap.
3.2.1
Benefit Cap Impact Assessment A lower Benefit Cap will be introduced across the UK from April 2016. The DWP have released an impact assessment explaining the reasons behind the tightening of the benefit cap and its expected outcomes. The DWP have confirmed that a higher benefit cap will be available (£23,000) in the 32 London boroughs and the City of London and £20,000 Page 33 of 57
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in the rest of Great Britain. The Key outcomes from the impact assessment are;
There will be a phased rollout of the lower benefit cap from April 2016 with a view to complete it around the end of 2016. This will replicate the implementation of the initial benefit cap in 2013 which began in four London boroughs before being implemented across Great Britain.
Currently, households affected by the benefit cap see their benefit entitlement reduced by an average of £80 per week in London and £52 per week elsewhere. Due to the tiered implementation of the lower benefit cap this is likely to change from 2016 onwards.
A total of 800 million will be provided in Discretionary Housing Payments over the next 5 years to assist vulnerable people who need extra support.
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YHN Implementation Response
4.1
Universal Credit Implementation Project YHN is taking appropriate action to mitigate, learn and understand the introduction of UC and the wider welfare reforms. This is difficult as information from the DWP can be limited and learning from other housing organisations is challenging, particularly as locally, we were the first to have UC implemented in our area and other organisations are coming to us for help and guidance. We have used learning from the direct payment pilots and our experience to date to streamline service delivery as far as possible but we know we need to do more. We are currently reconfiguring the UC action plan to ensure that;
We understand the impact on service delivery and we have the right systems in place to overcome any challenges Understand the impact of any changes in tenancy agreements Have staff within YHN knowledgeable and able to assist our customers at every contact Understand the risks and what the long term service provision should be Ensure that rent is everybody’s business in order to protect our rental income.
Board will recall that to support the initial roll out of UC, two ‘UC Specialists’ were appointed to work alongside the UC Implementation Manager. The staff are in post and working solely on supporting tenants with UC and currently testing co-location with the Job centres to increase partnership working and front loading of customer support. This approach is helping to understand the difficulties YHN tenants are facing and what impact on Page 34 of 57
service delivery this is having. We know that the approach of having two specialists officers would be unsustainable long term and have provided training to a group of income recovery officers within each area based team who are now acting as specialists within their service. They are responsible for managing universal credit cases within their areas and as numbers increase we will work towards supporting further roll out of UC cases to colleagues across the income recovery service. We are also working on providing this training to other front line services to ensure that any training provided is tailored specific to the service’s needs. This careful and this staggered approach will assist our learning to develop service delivery in light of UC and develop strong robust working practices. 4.2
Impact on the Introduction of UC to NCC Tenants YHN are aware of 129 tenants currently claiming UC. YHN should receive ‘landlord notification’ letters from the secretary of state advising when a tenant has made a claim and it includes an element for housing costs. The letter is to assist landlords in assessing which UC claimants may need advice and support in managing their financial affairs. The notification letters are not always being received by YHN. We are relying on Housing Benefit, staff and tenants advising us of new claims. Generally, the workload for managing a UC account requires intensive support following initial notification to ensure that all relevant evidence has been provided to the DWP. The support to tenants has varied with letters to creditors, referrals to food banks, employment, DHP applications and budgeting support being required.
4.3
Alternative Payment Arrangements Alternative Payment Arrangements (APA’s) are available in circumstances for claimants who are unable to manage their monthly payment. YHN have applied for 30 APA’s to receive the housing element as a ‘managed payment to landlord’. To date, all requests for APA’s have been approved but board should be aware that this is due to all tenants being in arrears of 8 weeks or more at the time of application. As the DWP will now receive applications via email this has significantly reduced the waiting time for applications which was previously taking 6 weeks. The DWP report that they are now dealing with APA requests in 95% of cases within five days. There are challenges in receiving the payments onto account. The DWP continue to use two legacy payment processes. The housing element is paid shortly after the claimants UC is paid but the DWP are quoting the claimants part National Insurance number and not the payment reference number. This means that when the payment arrives, each month it needs to be manually identified from the City Council’s suspense account. The rent arrears element is taken from the claimants UC personal Page 35 of 57
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allowance and paid to the landlord using the DWP Third Party Payment process which is on a four weekly cycle, not monthly. This means that the arrears element can arrive up to four weeks after it has been taken out of the claimants UC. 5
Partnership Working
5.1
Delivery Partnership Agreement (DPA) The DPA is the DWP’s mechanism for developing partnership working between agencies involved in providing services to the vulnerable; it is an agreement between the council and the DWP. There are three elements to the DPA; 1) Support for the DWP to assess housing costs and the manual processing of the local council tax reduction scheme. 2) Support to make claims online (support being provided by the council’s digital by choice programme) 3) Personal Budgeting Support (PBS) The DPA has now been signed and YHN are actively assisting tenants who have been identified as needing personal budgeting support. To date, YHN have assisted 48 customers in this regard. We are continuing to improve the knowledge of the local Job Centres of housing costs. Our co-location is assisting in identifying incorrect housing costs and customers who may not be eligible to claim UC as a result of being in supported or exempt accommodation. This is a new way of working for the DWP and has been positively received in particular in identifying whether customers need further assistance or by providing evidence of housing costs at the time of making a claim.
5.2
Policy in Practice (PiP) Since the Board report in July we have now received a preliminary report from Policy in Practice to help YHN and the City Council understand the cumulative impact of welfare reform in Newcastle. The report will be available to be circulated to board at the next update but early key findings are as follows;
Working age households in YHN managed tenancies have seen their income fall by an average of £8.11 per week due to deficit-reducing welfare reforms Reforms announced in the summer budget will be reflected in an average weekly income loss of £16.38 An estimated 525 council tenants will be affected by the lowered benefit cap (currently 44) with a reduction in housing benefit rising on average from £42.71 to £52.54 per week 1,907 households (32%) will receive lower tax credit support in 2016 compared to 2015.
YHN will be working through via the UC project group and with NCC over Page 36 of 57
the coming weeks on how we use the information provided by PiP to target support to households who are hardest hit by welfare reform and further detail will be made available to board at the next UC update. 5.3
Universal Credit Triage Trial Newcastle City Council, (NCC), YHN, Jobcentre Plus and other local partners wanted to prepare for the introduction and the roll-out of Universal Credit and the wider welfare reform programme by strengthening the integration of support to people affected by the welfare reforms. The Universal Credit Triage Trial has been developed and delivery of a common triage process for support staff from statutory and voluntary and community sector organisations to use with the residents they work with. A questionnaire has been used as a tool in the trial to guide the assessment process to cover areas, which are central both to residents’ stability and to them being able to adapt to the requirements of Universal Credit:
Digital – support to residents to go online and manage claims / transactions Financial – support to residents to budget and manage monthly payments Employment – support to residents to access work-focussed training and employment Housing – support to residents to sustain their tenancies and prevent homelessness
The aims of the Triage Trial have been to:
Enable residents to receive support with the above areas in an effective and consistent way Provide frontline staff with a consistent and trusted framework to discuss the issues residents face in the above areas so that they can provide support accordingly, and are supported themselves to be able to do this Support our shared understanding of the issues residents face and how the services and support in the city can work together as a system to enable residents to deal with them.
During the six month period of the trial, the following activities have taken place:
The triage process has been carried out with 307 residents. This includes YHN’s Advice and Support Team completing 152 questionnaires with their clients. 248 residents have been provided with information or support or referred to services as a result of the triage process 59 frontline staff from 13 services and organisations have used the triage process 80 frontline staff have received the ‘Introduction to Budgeting’ training that has been developed and delivered as part of the core training for the Triage Trial. Page 37 of 57
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Newcastle City Council has carried out a review process to help to assess whether carrying out the triage process has had any positive impact on residents. This has consisted of the following:
Direct follow up with the residents who were provided with information or support or referred to services as a result of the triage process, using bespoke review questionnaires that corresponded with the responses given in the original questionnaire. The majority of these reviews were carried out by telephone. Reviews were attempted with 222 of the 248 residents who were provided with information or support or referred to services (where the contact details were available) and 134 residents were spoken to, a 60% response rate Follow up with services who have received referrals via the Triage Trial on the outcomes that have arisen as a result of their intervention Tracking the rent accounts for the YHN clients who accepted budgeting support as a result of the triage process, to see whether that resulted in any improvement on their rent account. Three months after the triage process had been carried out with them, 36 of the 55 YHN clients who accepted budgeting support had reduced their rent arrears (65%).
The above review process has shown that:
101 residents have reported, or records show, that they have acted on the information or support that they were provided or have taken up a referral that was made for them to a service as part of the Triage Trial 146 residents have reported, or records show, that they have had an improvement in their situation in the areas covered by the Triage Trial – digital, financial, employment and housing (this includes self-reported improvements by 117 of the 134 residents that we spoke to – 87%)
The Triage Trial Steering Group, which includes representatives from YHN and the Department for Work and Pensions (DWP), is considering the findings from this work and the opportunities to embed the shared learning into practice and to inform future service and system design. The findings will also be shared with the DWP at a national level so that they can be considered alongside the evaluation of the national ‘Universal Support – delivered locally’ formal trials. 6
Income Management Strategy Progress is being made with the Income Management Strategy action plan. Direct debit continues to be our preferred payment method and the number of rent direct debit payers has increased by 13% year to date to 6,959. We expect to achieve our target for rental income collection for this financial year. In preparation for the withdrawal of the cashiering service all Income staff has received additional training on payment methods and will concentrate on converting affected tenants to direct debit. For customers who still prefer to use other methods, we will offer bar codes from December to enhance the PayPoint /post office service and improvements are being made to the Page 38 of 57
online service by the introduction of ‘estore’. This will make it more user friendly and will resemble an online shopping site enabling the user to save card details and complete transactions much more quickly and easily. All tenants who regularly use the cashiers service will be contacted before the end of November to ensure that have an alternative payment method in place. 7
Business Implications
7.1
Purpose and objectives By taking an approach that maximises income collection whilst supporting tenants we will contribute to our strategic objectives of;
7.2
Make the money deliver Work together to create a brighter future.
Value for money and efficiencies: The implementation project includes actions that are intended to ensure we deliver efficient services that are value for money. It is anticipated that as UC implementation grows and other customer groups start being affected by the changes that customers will seek more support. We cannot solely rely on our Advice and Support and Young people’s services to assist our customers in need, we will ensure that all frontline services are able to assist customers and make every contact count in order to secure our rental income.
7.3
Financial Implications YHN Board previously agreed to establish a reserve specifically for welfare reform related activity. This reserve is now managed by the council and we now considering what resources will be needed over the coming months and will request a further draw down of funds as required.
7.4
Impact on services / performance The collection rate for tenants who have been transferred to Universal Credit is being monitored separately and as expected arrears for this group are above average with a collection rate of 72.50%. This figure is showing an improving weekly trend which is expected to continue. The overall collection rate for all tenants including UC claimants is currently on track at 98.6% which is ahead of the seasonally profiled target of 98.13%
7.5
Outcome for tenants/leaseholders A large percentage of council tenants and leaseholders will be affected by Universal Credit. Currently over 61% of working age tenants are currently in receipt of Housing Benefit and will be responsible for managing a monthly payment and paying their rent directly to YHN.
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7.6
Risk (reputation and relationship) YHN and the City Council have developed a reputation for low evictions and reduced homelessness. The introduction of Universal Credit presents a risk of increased rent arrears which could ultimately lead to eviction. This may affect our relationship with statutory and voluntary sector partners. UC does present a unique opportunity to build positive relationships with the DWP and we hope by working jointly with the council we can prevent evictions and sustain YHN tenancies. When fully rolled out there remains a significant risk to HRA rental income.
7.7
Environmental There are no direct environmental impacts following the introduction of Universal Credit.
7.8
Legal UC is a significant element of the Welfare Reform Act 2012 and its implementation is determined by further regulation and guidance. In terms of our implementation project there may be changes to tenancy agreements and further updates will be brought back to Board.
7.9
Equality and Diversity and Community Cohesion The introduction of Universal Credit may increase tenancy turnover and homelessness which could impact on community cohesion and sustainability of estates. National research has identified that women and some other groups are disproportionately affected.
7.10
Stakeholder Involvement/consultation: We have been working with the council and other partners as part of the welfare reform strategy board. We have developed a communication plan as part of our UC implementation project that encompasses internal and external stakeholders.
8
Conclusion and recommendations
8.1
Board is recommended to 
Note progress made on delivery of the Universal Credit Implementation Project.
9
Implementation
9.1
Reports will be brought back to Board on a quarterly basis during 2015/16.
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Background Papers Universal Credit report to YHN Board February 2015 Universal Credit report to YHN Board May 2015 Universal Credit report to YHN Board July 2015 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Neil Scott, by telephone on 0191 278 8711 or email neil.scott@yhn.org.uk
8ii
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Page 42 of 57 £900,000 from Lifecycle Programme
INT0014 Kitchen Replacement Programme
EXT0007 Pendower Repointing (NEP)
David Langhorne Property Services
David Langhorne Property Services
3
4
5
8iii
£47,000 from existing Revenue Budgets
Napier Street & Station Court
Neil Scott Tenancy Services
£850,000 from Lifecycle Programme
£12,440 from existing IT budget
Renewal of support and maintenance
Sheila Breslin Corporate Services
2
£12,000 from existing IT budget
Renewal of licences
Cost/ Budget provision
1
Scheme
Sheila Breslin Corporate Services
No. Delegated Officer
Directorate/
Contractor
381 MGM
204 Keepmoat Ltd
32 Coquet Trust
N/A Kana
N/A NDL Metascribe
Units
Benwell and Scotswood
Cross City
Shieldfield & Walker
N/A
N/A
Wards
Cairns, Andrew(YHN)
Cairns, Andrew (YHN)
Railton, Tony (YHN)
Saul, Nigel (YHN)
Saul, Nigel (YHN)
Officer
Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 5th September 2015 and 15th October 2015
Board 3rd November 2015
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ENV0008 - New Mills remodelling
Walker Learning Hive
Tarran Bungalows
David Langhorne Property Services
Sheila Breslin Corporate Services
David Langhorne Property Services
11
12
13
£66,250 from Spend to Save
£10,000 from existing Employability budget
£310,000 from Environmental Work and Communal Areas
£46,642.71 from Lifecycle programme
David Langhorne Property Services
10
£60,000 from Environmental Work and Communal Areas
ENV0018 16,18,28 Belmont Walk, Rebuilding Walls
8
9
David Langhorne Property Services
7
£150,000 from Existing Revenue budget (Contract Renewal)
£18,330 from Participatory budget
Iris Steedman House environmentals
Neil Scott Tenancy Services
£10,000 from Regeneration Non-housing Assets
PB19 Amherst Road Parking
Direct Debit contract renewal - allpay
David Langhorne Property Services
6
David Langhorne Property Services
Westerhope Community Centre Roof works
Building and Commercial 55 Enterprise
Northern N/A Learning Trust
HLS - Newcastle 44 City Council
Building Commercial 3 Enterprise
HLS Environmental 11 Services
HLS - Newcastle 31 City Council
N/A allpay
1 Hodgson Sayers
East Gosforth
Walker
Westgate
Walker
Fawdon
Westgate
Cross City
Westerhope
Giles, Joanne (YHN)
Clarke, Stuart (YHN)
Boyle, Geoff (YHN)
Stothard, Keith (YHN)
Nichol, Philip (YHN)
Boyle, Geoff (YHN)
Grainger, Maureen (YHN)
Johnson, Barry (YHN)
8iv Board 3 November 2015 Petitions Monitoring Report by Senior Director For Information 1.
Background information
This report informs Board on Petitions received during July - October 2015. The Petitions Protocol states that the Senior Director will refer petitions relating to operational issues to the appropriate Head of Service who will be responsible for contacting the petitioners (or petitioners’ representatives).The Head of Service will make any further enquires which are required and draft a response on behalf of the Senior Director. The Senior Director will ensure that Your Homes Newcastle responds to the petitioners’ request. 2.
Petitions received
Date received
Petitioner(s)
Issue
Action
13 August 2015
Residents of Eastgarth, Newbiggin Hall
Anti-social behaviour
Response letter sent by Area Tenancy and Estate Manager on 27 August
Detailed paperwork relating to the petition has not been included in the Board papers. If you would like to see the specific details please contact Jill Davison. 3.
Recommendations
3.1
Board is recommended to note this information.
Background Papers Petitions Protocol Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk Page 44 of 57
Board 3 November 2015 Board Forward Plan
8v
1
Board Forward Plan
1.1
This Board Forward Plan lists the reports known at the present time that will be presented at the Board meeting on 8 December 2015 (or amended date subject to confirmation): Board Reports Management Agreement
Non-confidential
Business Strategy
Non-confidential
Health & Safety 6 Monthly Report & Policy
Non-confidential
Governance Action Plan update – Learning and Development Plan
Non-confidential
Financial regulations & IT transfers
Non-confidential
Capital Programme Review
Confidential
Byker Community Trust Update
Confidential
Safeguarding Report
For information
Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison, Company Secretary by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk
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Finance and Resources Committee 25 June 2015 (5.00pm - 6.05 pm) Present:
P Dibbs P Dutton E Snaith L Stephenson
(In the Chair)
In Attendance: L Forrest B Elder M Grainger G Ellingham C Nicholson
39
-
Head of Finance Strategic HR Manager Income Manager Head of IT Procurement Manager- Development and Procurement
APOLOGIES FOR ABSENCE Apologies for absence were received from V Dunn, L Wilson (formerly L Middlemiss).
40
DECLARATIONS OF INTEREST None.
41
MINUTES OF THE MEETING HELD ON 2 APRIL 2015 The minutes of the meeting held on 2 April 2015 were approved as a correct record and signed by the Chair.
42
ACTION LIST REVIEW Sickness Absence – Presentation made to members present prior to the meeting. Dignity at Work – Letters had now gone out. RESOLVED – That the action list be received and updated accordingly.
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OUTTURN REPORT - UPDATE - VERBAL L Forrest informed the Committee that the outturn figures for 2014-15 were presented to the Board on 15 May 2015, showing a profit of £2,043,000 (subject to tax review).Some discussions had been held with the Auditors about the status of the profit and it had been confirmed that the accounts would remain as presented. RESOLVED – That the verbal update be received.
44
ARREARS MONITOR Submitted: Report by Income Manager) previously circulated and copy attached to Official Minutes) M Grainger introduced the report which provided committee with a summary of year end performance for 2014/15 and a breakdown of arrears at 31 May 2015 for current tenant rent and sundry arrears, former tenant rent and sundry arrears, leasehold service charge arrears and leasehold major works arrears. The report also included details of performance against targets. The Chair said that this was a positive report given the current economic climate. RESOLVED – That the report be received.
45
SICKNESS ABSENCE UPDATE Submitted: report by Strategic HR Manager (previously circulated and copy attached to Official Minutes). B Elder introduced the report which provided an update on the sickness statistics for YHN for the last financial year (2014/15). The sickness figure at year end was 10.8 days per FTE compared to the target of 7.5 days. The figure for the same period in 2013/14 was 10.25 days. It was noted that the average level of employee absence in the UK had fallen compared with last year from 7.6 days to 6.6 days per employee. The public sector was showing 7.9 days absence per FTE and the private sector was showing 5.5 days absence per FTE. The new target for 2015/16 was 8.2 days absence per FTE, which was the average target of House Mark members. The report included a full breakdown of the reasons for sickness absence and the next steps to address the issues. An internally developed absence case management tool was currently being piloted with Tenancy Services. The following issues/comments/queries were raised in debate:
Reference was made to the high level of absence in the Tenancy Services Directorate and the Chair questioned whether these staff felt less engaged Page 47 of 57
with the YHN centre. Perhaps some wider work would be necessary to improve engagement with this group. B Elder said it was a complex picture and regard had to be made to the vigorous nature of the work these staff were engaged in. The furniture service was also labour intensive. However improvements were being made, however further work is being undertaken to address the ongoing high levels of absence in these areas. Concern was expressed about long term illness where it appeared that staff were absent longer than might be expected from non-life threatening conditions. It was noted that all staff were being encouraged to have a health check and a GP funded resource was available until December 2015. Given the level of stress figures reported, spend on Absence Management Counselling was relatively low, and trying to understand the underlying causes of stress was difficult as it could be work related or domestic stress. Further work is being planned through a pilot counselling project with Relate. The figures showed that short term sick was worse than long term sickness which was not the normal pattern experienced in other organisations.
RESOLVED – That the report be received and the improvement in sickness figures this financial year so far, be noted. 46
STAFF DEMOGRAPHICS REPORT Submitted: Report by Director of Corporate Services (previously circulated and copy attached to Official Minutes). B Elder introduced the report which provided information about the make-up of the YHN workforce from 1 April 2014 to 31 March 2015, identifying the main areas of difference from last year, actions to date and going forward. The report compared YHN workforce against the population of Newcastle upon Tyne and used census data from 2011 in order to establish representation against specific demographic data. The report contained details of the key findings from 2014/15 data and actions since 2013/14 using the demographic data. The following issues/comments/queries were raised in debate:
The EAS Form was to be amended so people could change their status in complete confidence, and it was hoped more staff would use it to give improved data. It was all about what the person completing a form was prepared to declare. There was concern that some people would not want to make a return around sexuality, even if logged on their personal file in confidence. Could the information be captured anonymously? Perhaps it was a matter of trust. Monitoring forms that had no name on them that could be detached should suffice. Thinking about sexuality for example, did YHN need to know and collect data about who was gay; if so, it only became useful if there were compelling reasons for using the data. The Chair felt not and said it was a personal issue. What the organisation should be doing was emphasising that the organisation operated on ‘a level playing field’. Page 48 of 57
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A member asked how YHN used this information. Was it to demonstrate in certain employment claims that YHN were not acting in a discriminatory manner?
Members were reminded of the opportunity to attend the Unconscious Bias training event being held on 5 August 2015 RESOLVED – That i. The demographic data for 2014/15 be noted. ii. The actions taken since 2013/14, and progress so far in 2015/16, be noted. iii. A further report be submitted to a future meeting concerning the ways in which the organisation uses the demographic information, and iv. More information be provided to a future meeting in respect of the Stonewall Project and the reasons for dropping 20 places compared to last year. 47
CORPORATE PROCUREMENT STRATEGY PROGRESS REPORT Submitted: Report by Procurement Manager- Development and Procurement (previously circulated and copy attached to Official Minutes). C Nicholson introduced the update report which follows a full review of the Corporate Procurement Strategy, including action plan which was undertaken during 2014 and approved by the Board in January 2015. Ten actions were completed, ten were ongoing and one action had amber status. In total 152 procurements had been completed in the year generating annualised savings of £0.541m. New Public Procurement Regulations were introduced this year linked to European Directives. The key changes were set out in Appendix 2. RESOLVED – That the report on progress against the corporate procurement action plan to date be received.
48
INFORMATION GOVERNANCE Submitted: Report by Head of IT (copy attached to Official Minutes). RESOLVED – That the report be received.
49
EXCLUSION OF PRESS AND PUBLIC RESOLVED – That the press and public be excluded during consideration of the following item
50
CONFIDENTIAL MINUTES OF MEETING HELD ON 2 APRIL 2015 RESOLVED – That the confidential minutes of the meeting held on the 2 April were approved as a correct record and signed by the Chair
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Customer and Service Delivery Committee 14 July 2015 (4.30 - 6.35 pm) Present: P Dutton N Shukla T Moore J Purvis J Reid J Streather M Talbot L Wilson
YHN Board Member (Chair) YHN Board Member YHN Board Member YHN Board Member YHN Board Member YHN Board Member YHN Board Member YHN Board Member
In Attendance: N Scott M Burn J Johnson J Urwin I Gallagher T Jarman A Todd-Mills J Vinton J Lockey R Clark R Ball S Studley A Allison J Edminson
1
8vi Director of Tenancy Services Head of Support and Care Leasehold and RTB Manager Head of Housing Options Head of Property Maintenance Environmental Sustainability Co-ordinator Investment Delivery Manager Head of Assets and Regeneration Lead Telecare Officer Care Services Manager Customer Involvement Officer Technical Surveyor Property Maintenance Head of Income and Tenancy Management NCC Democratic Services
APOLOGIES FOR ABSENCE Apology received for David Langhorne, Director of Property Services.
2
DECLARATIONS OF INTEREST None
3
MINUTES OF MEETING HELD ON 19 MAY 2015 RESOLVED – That the minutes of the meeting held on 19 May 2015 be agreed as a correct record.
1
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Ian Gallagher (Head of Property and Maintenance) referred to repairs and maintenance and informed the committee that delivery of a new reporting solution for repairs would soon be on line and that the call centre reporting software would be aligned to the repairs software, so there was potential to replace the app when everything was aligned. This would be a much better offering than the app as repairs reported through the app were be picked up in two working days. Tenants were not encouraged to use it for urgent repairs. An update would be presented to the next meeting – action point 4
ACTION LIST AND WORK PLAN Submitted: Report by Neil Scott (Director of Tenancy Services) to provide information on the Customer and Service Delivery Committee work plan and the action list July 2015 to January 2016 (previously circulated and copy attached to Official Minutes).
5
HEALTH AND WELLBEING PRESENTATION J Urwin, Head of Housing Options, gave a presentation about the core business and how it added value to Health and Wellbeing throughout the organisation, illustrating this through displaying a series of slides/photos showing the types of activity undertaken. Members’ comments and points raised
A member enquired how tenants were made aware of the activities and was advised that this was dependent on the type of initiative undertaken. Activities were focused on particular groups and not available generally. A lot of what was done was targeted e.g. certain property types, certain schools. Activities publicised through notice boards were not necessarily the most effective way to communicate and therefore communications needed to be looked at in more detail. A member asked if there was a strategic approach to these initiatives or were they just seen as individual projects. What were we trying to achieve and what outcomes did we envisage in terms of supporting people; having safe, warm and cheap properties and assessment of impact on the community/neighbourhood. Further questions referred to how YHN initiatives related to other partnerships. For example, how did they correlate /integrate with City Council initiatives, Public Health and the City wide Health and Wellbeing strategy. It was noted that the City Council Wellbeing for Life Strategy was three to four years old and was being refreshed and it was suggested that YHN could be considered as a member of the Wellbeing for Life Board. J Streather said she would raise this with the City Council. N Scott said that YHN did not have a broad strategy to cover all of their initiatives and that it was appropriate to rethink this, define outcomes and what the organisation was trying to achieve. Action point
A paper ‘Contributing to Health and Wellbeing at YHN July 2015’ was made available at the meeting for the information of the committee (Copy attached to Official Minutes).
2
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A review of health and housing support was being carried out to ensure YHN was meeting the needs of customers and the outcomes expected. It was aimed to complete this by March 2016 and officers would present an update to committee in January 2016 – action point Members’ comments and points raised
6
It was noted YHN did not work with the Universities in any depth although there was an awareness of the availability of research and guidance, of which some limited account was taken Regard had to be made to tenants displaying health problems and how YHN supported them. How did YHN intervene where necessary? Health awareness was important. A member said the presentation showed a range of issues being addressed to sustain tenancies, especially the targeted initiatives, and as such linked with a broad strategy. The Task and Finish Group was meeting this week and would find this presentation useful. A member made an observation about YHN liaising with Newcastle West End surgeries and asked where data sharing came from. It was noted that YHN tried to support sharing information with several surgeries.
ENVIRONMENTAL SUSTAINABILITY ACTION PLAN Submitted: Report of D Henry and T Jarman Environmental Sustainability Coordinators) (previously circulated and attached to Official Minutes). The Chair drew attention to Para 3.1 of the report reminding members to let officers know if there were any general or specific projects that would be of interest to them for future updates and discussion. I Gallagher, Head of Property Maintenance presented the report updating the Committee on progress made since Board adopted an Environment Sustainability Policy Statement which set out YHN’s vision and priorities in this area. The report covered the key points of the Policy Statement. Specific progress on the Action Plan, external accreditation through SHIFT and the business case for the team’s work. Appendix one set out the Environmental Sustainability Policy Statement and Appendix Two listed tenant feedback on Ewart, Shaftoe, and Bramwell External Wall Insulation Scheme. Members’ comments and points raised
The Chair asked how the energy efficiency of a property was derived and it was explained that a number of aspects were considered e.g. the construction of a property, type of fuel, appliances etc. It was a robust assessment process to determine a property rating. It was noted that 150 front line staff were to be trained in how to interact with tenants to give them energy advice and I Gallagher said that any Board Member could attend a training session if they so wished. A member said that this Policy Statement and Action Plan met the Strategic Objectives and contributed to their delivery. In answer to a member’s question about whether YHN worked with the Tyne and Wear Fire and Rescue Service in dealing with vulnerable people (e.g. 3
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Fire Alarms), it was confirmed that YHN worked very closely with them. I Gallagher would keep the Committee updated on such matters as and when necessary. A member pointed out that energy advice to tenants was often reactive and YHN needed to extend their reach. I Gallagher referred to the upcoming front line training for core staff who would have a consistent level of training and be issued with a package of support guidance. At the conclusion of the training he anticipated that the staff would become more proactive .A member said that this was a good approach and future proofing was welcomed. The Chair referred to the SAP profile of stock and would like to see the type of stock mapped against planned investment.
RESOLVED – That the report be received and Committee be presented with an update report every six months on the team’s work 7
TELECARE SERVICE DEVELOPMENTS PRESENTATION R Clark, Acting Care Services Manager, delivered a presentation on this service and a demonstration was made of the new equipment used by the service which had additional benefits for the Telecare service. The operational improvements provided by the new equipment were explained. The presentation covered the current service, future plans, benefits to customers, and Health and Social Care integration. Members’ comments and points raised
8
The Chair referred to user testing and was wary of how vulnerable people would cope with the new equipment and methods for use .R Clark said that the new system was only at the early stages of development and the viability of it had to be demonstrated with non-vulnerable people first before it could be fully rolled out. The Committee was informed that the initial feedback on the new equipment was that there was too much data displayed on the screen and this had now been limited. A member commented that it was important to understand the demographic of the tenant especially anyone with visual impairment. R Clark said some research had been commissioned to consider how best to service wider needs. The equipment had been modified for customers with sight and hearing disabilities.
INVESTMENT PROGRAMME COMMUNAL AREAS PRIORITISATION Submitted: Report of J Vinton (Head of Assets and Regeneration) (previously circulated and copy attached to the Official Minutes).
4
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This report provided Committee with information on the recommendation for the prioritisation of blocks within the communal upgrade programme taking into account the internal painting cycle, block inspections carried out by tenancy and estates, Net Present Value (NPV) and sustainability analysis and fire risk assessment information. Work had been completed on a pilot block to identify what work should be included in the specification for the communal upgrade programme. This included lighting, flooring, decoration, windows, doors, entrances, items identified in fire risk assessments and solutions for the redundant concierge lodges. Blocks may require a bespoke specification. The initial driver for the prioritisation process had been internal painting and blocks had been ordered by their next internal painting year as the starting point for prioritisation. For multi storey blocks there was then some smoothing of the programme to ensure this was deliverable. The multi storey proposed programme was attached as an appendix. Further prioritisation is required for mid / low rise blocks which will be based on the inspections carried out by tenancy and estates which covers nine key areas and identifies any investment needs. Blocks which are identified as in the worst condition will be prioritised for communal works. Final programmes will be discussed as part of estate based planning meetings with local housing staff. Blocks which are assessed as being in good condition may require a further painting cycle before they receive the communal upgrade. This will ensure the programme is deliverable. Members’ comments and points raised
The Chair proposed that some thought be given to how aesthetics (such as colour psychology) might influence behaviour of tenants .J Vinton said that was not currently being considered for pilot blocks but that this will be looked at for future projects. The Chair suggested that consideration be given to cleaning of floors especially on corners. J Vinton advised there was a site visit planned to look at the specification and ensure it did not cause future maintenance or cleaning problems.
RESOLVED –That the 1) Information used to develop the programme be agreed 2) The multi storey programme be agreed, and 3) The process to be applied for the prioritisation of the mid/low rise blocks be agreed. 9
INVESTMENT PROGRAMME ENVIRONMENTAL PRIORITISATION Submitted: Report of J Vinton (Head of Assets and Regeneration) (previously circulated and copy attached to the Official Minutes). This report provided Committee with an update on work which had been carried out to look at priorities for Environmental improvements, and the development of an
5
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Environmental Issues Register, as well as a process for prioritising future environmental projects. Information on environmental issues has been collected from a number of sources. These issues have been collated; this has identified over 400 environmental issues which range from small scale projects to large scale estate improvements. As a result an Environmental Register had been developed (Appendix 1 referred) to coordinate the results and provide a platform to share results with staff, and progress on the requests. It was proposed to band priorities into low cost schemes (under £5,000), medium cost schemes (£6,000 - £250,000) and high cost schemes (over £250,000). The priority for low cost schemes will be spend to save and requests from residents via Going for Gold inspections. An Environmental Priority Investment Calculator (PIC) would be introduced to prioritise medium and high cost schemes (Appendix 2) and would be based on clear criteria which would be weighted as set out in the report. Members’ comments and points raised
A member queried the role of a local Ward Councillor in assessing local environmental issues, in particular how and when would a Councillor be informed of local proposals and at what point did they become involved. J Vinton said that any project was subject to consultation, but some had no community support. YHN officers would need to consider how best local Ward Councillors could be engaged in the future – action point
RESOLVED –That the 1) priorities for future environmental improvements be agreed, and 2) prioritisation process for the Environmental Improvement programme be agreed. 10
RIGHT TO BUY GOVERNMENT PROPOSALS A member enquired if any report would be forthcoming in the near future concerning the Governments latest Right to Buy proposals. It was also a concern that there was limited information from Government on the detail of the proposal to sell off high value voids. N Scott stated that a report to Board this month will set out the Government’s budget proposals and that further work would be done to assess the potential impact of this initiative when more detail was known.
11
DATE AND TIME OF NEXT MEETING 4.30pm on Tuesday, 15 September 2015
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Commercial Committee 21 July 2015 (4.00 - 5.55 pm) Present: A Mirza P Dibbs D Huddart J McCarty T Moore
(In the Chair)
IN ATTENDANCE Neil Scott Louise Horsefield Martyn Burn Jason Wylie Daniel McGuinness Rob Clark Andrew Waters Susan Darroch 45
- Director of Tenancy Relations, YHN - Head of Business Strategy, YHN - Head of Support and Care, YHN - Head of Business Services, YHN - Lead Communications Officer, YHN - Care Services Manager, YHN - Sales and Marketing Manager, YHN - Democratic Services Officer, NCC
APOLOGIES FOR ABSENCE Apologies for absence were received from Paul Scope.
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DECLARATIONS OF INTEREST None.
47
MINUTES OF PREVIOUS MEETING HELD ON 12 MAY 2015 RESOLVED – That the minutes of the meeting held on 12 May 2015 be agreed as a correct record and signed by the Chair.
48
ACTION LIST REVIEW RESOLVED – That (i) (ii)
The Action List from the meeting on 12 May 2015 be received; and The meeting scheduled for 13 October 2015 2015 be held at Palatine.
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EXCLUSION OF PRESS AND PUBLIC RESOLVED – that the press and public be excluded during discussion of agenda items 6 to 11 because of the likely disclosure of confidential information. The definitions of what is considered confidential were contained within Section 16 of the Company’s Standing Orders.
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