Agenda item

A report from the Director of Health, Housing and Adult Social Care is attached. This outlines proposals to progress the plans to re-integrate Enfield Homes back into the Council. (Key decision – reference number 3911)

(Report No.22)

(8.55 – 9.00 pm)

Councillor Ahmet Oykener (Cabinet Member for Housing and Estate Regeneration) introduced the report of the Director of Health, Housing and Adult Social Care (No.22) outlining the progress made with the ALMO re-integration.

NOTED

1.               That Enfield Homes had been established as an Arms Length Management Organisation in 2008. The Management Agreement had expired in 2012 but this had been extended to March 2015 (or the cessation/significant reduction of external Decent Homes funding, whichever was the sooner), as set out in full in the report.

2.               That in line with previous decisions it was now formally proposed that Enfield Homes be reintegrated back into the Council. This would provide an opportunity to deliver efficiencies and streamline functions across the Council in the delivery of both housing and back office services. The financial implications were as detailed in section 6 of the report, with significant savings identified.

3.               That in considering the options for future processes, structures and delivery models a number of principles would be applied as set out in section 3.13 of the report.

4.               Councillor Charalambous advised that Hackney Council had recently made a similar decision with reintegration proposed for 2016.

Alternative Options Considered: NOTED the following alternative options which had been considered:

1.     The housing management and maintenance services for tenants and leaseholders occupying Council stock could continue to be provided by Enfield Homes as an Arms Length Management Organisation through a new Management Agreement. As the Decent Homes Programme funding was expected to cease in March 2015, there was a financial dis-benefit to retaining an Arms Length Management Organisation, as reintegration offered greater opportunities to streamline ways of working and deliver efficiencies across the wider housing service and Council. This would enable resources to be re-prioritised to improve the service provided to tenants and leaseholders.

2.     A new Management Agreement that incorporated additional Council services or shared services with neighbouring boroughs could be issued. This was considered as part of the 2012 Housing Management Review and was not deemed a viable option and as a result was discounted. The Council’s transformation programme, Enfield 2017, was seeking to streamline Council functions so the incorporation of additional services into the ALMO would compromise the wider Council transformation and reintegration offered the opportunity to deliver streamlined, holistic services to local residents.

3.     The housing stock could be transferred to an independent registered provider or a partial transfer to facilitate estate regeneration. This had been considered as part of the Housing Management Review and discounted due to a risk of losing focus on the day-to-day management and maintenance in preparing for a potential transfer, which would require extensive approvals and tenant consultation. Additionally, the review had found that this option was not favoured by local residents.

DECISION: The Cabinet

1.               Noted the earlier decision by Cabinet in 2012 (Key decision 3531) approved by Council, regarding the extension of the Management Agreement until March 2015 with a number of recommendations to ensure a smooth transition back to the Council, subject to a further review in 2014.

2.               Agreed to confirm and progress the plans to reintegrate Enfield Homes back into the Council formally on 1 April 2015, following the expiry of the Management Agreement.

3.               Agreed to dissolve Enfield Homes as a legal entity from 1 April 2015 onwards.

4.               Endorse plans to streamline functions and reintegrate elements of Enfield Homes prior to April 2015 where appropriate and legally permissible.

Reasons: The following reasons were outlined in section 5 of the report:

1.              The Enfield Homes Management Agreement ceased on 31 March 2015.

2.              The Decent Homes programme funding allocated to the Council ceased in March 2015 therefore there was no longer a financial incentive to separate the housing management and maintenance functions from the wider Council.

3.              Enfield Homes and the Council had been successful in delivering the recommendations approved by Cabinet in July 2012 to prepare for reintegration.

4.              The reintegration of Enfield Homes offered opportunities to streamline functions across the Council and Enfield Homes, which would enable more efficient working so resources could be effectively prioritised to improve the services delivered to local residents.

5.              The reintegration of Enfield Homes offered the potential for efficiency savings of up to £540k through the deletion of the Enfield Homes Chief Executive post and the governance function, accountancy services, HR savings and from a review of the senior management structure including the appointment of Joint Chief Operating Officer and Joint Head of Housing Finance.

6.              There is the opportunity to improve the performance of the housing management and maintenance services by building on synergies that exist between the services provided by Enfield Homes and those by the Council.

7.              Available options for future service delivery models, processes and staffing structures would be explored in line with an agreed set of principles, with a view to taking a phased approach to reintegration to coincide with Enfield 2017 timescales, uphold TUPE obligations and maintain the quality of service provided to residents throughout the transition, so a streamlined, efficient and effective housing services could be successfully delivered.

(Key decision – reference number 3911)