23 April 2004
Council-owned housing companies that pass their first inspections risk losing government funds if they fail subsequent checks, it was announced this week.
But the arm's-length management organisations will be given at least one year to bring themselves back up to standard, housing minister Keith Hill told the National Federation of Almos annual conference in York on
April 20.
Unveiling plans for regular inspections, he suggested an Almo might be placed under supervision if it failed to gain at least two stars at re-inspection rather than lose money immediately.
Of the 20 Almos up and running, 15 achieved two stars while five gained the maximum three. No re-inspections have taken place. Hill indicated that Almos with the most stars would be inspected less often.
Almost 500,000 properties are now under Almo management, with homes being modernised at a rate of 4,200 per month. 'It is only right that bodies entrusted with almost half-a-million council homes and for delivering billions of pounds of investment needed to make those homes decent have their performance monitored,' he told the conference.
The first eight Almos, set up in 2002, were recently awarded an extra £473m over two years. But Hill said he was disappointed by the high allocations sought by some, and urged them to join the rest of the public sector in achieving greater efficiency.
NFA policy officer Gwyneth Taylor said the federation was pleased that the government was no longer suggesting annual inspections and that money would not be automatically taken away following a poor inspection.
She doubted, however, if Almos could find savings as the government wished, saying: 'We are already delivering value for money.'
PFapr2004
