The Local Government Association (LGA)’s latest research has found that councils could face an extra bill of £18 million to deal with new government housing standards.
The government is introducing new standards for the professionalisation of the housing sector under the Social Housing (Regulation) Act, which requires senior housing management staff to complete qualifications up to a certain level.
The LGA is calling for additional costs for training these staff to be fully funded by the government – its research has found the changes are likely to cost councils £17.9 million in the first two years and following that, £3.7 million a year on an ongoing basis.
The LGA, which represents councils, says these additional costs need to be fully funded by government to prevent costs falling on over-stretched Housing Revenue Accounts (HRAs).
It is calling for the implementation to be properly managed, with council housing management teams already facing significant workforce pressures, and for the Government to work with the LGA and qualification bodies on a comprehensive strategy, delivered to a realistic timetable.
In addition, local areas must be able to make their own assessments of roles in scope based on their individual workforce profile.
The LGA’s new research has also found:
- 66% of senior housing managers at respondent councils were not yet sufficiently qualified to meet the new requirements, and 54% of senior housing executives likewise require further qualifications.
- 62% reported they would not feasibly be able to ensure 100% compliance with the required level of qualifications within a two-year period, given their current resources.
- 80% anticipated great or moderate disruptive impacts on their recruitment and retention of housing officers as a result of the new requirements, while 68% anticipated a disruptive impact on their service provision.
Cllr Linda Taylor, LGA housing spokesperson, said:
Councils are fully committed to improving the quality of social housing, supporting housing staff and ensuring they receive appropriate training and can gain qualifications to help them in their roles.
With costs to councils likely to be almost £18 million just for the first two years, it is essential that these new requirements are fully funded.
Councils’ Housing Revenue Accounts are already facing unsustainable financial pressures, and this would be an additional burden which risks impacting on councils’ ability to fulfil their roles effectively as housing authorities.
In addition, as our research shows, councils need more time to plan and implement these new requirements that are being imposed on them. This is why it is vital government works with us, and that these changes are carefully and properly managed, while being mindful of the significant workforce challenges housing teams are facing right now including recruitment and retention concerns.
