10 October 2008
Housing associations are coming under new pressure to curb the pay of senior staff after some chief executives defied the economic downturn and received double-digit increases.
Mark Bramah, assistant chief executive of the Association for Public Service Excellence, said it was 'obscene' that such increases were being awarded when many people were struggling to pay mortgages or find homes to rent.
The average pay rise for housing association chief executives last year was 7.3%, but some received far more. Eight now earn £200,000 or more, with the highest paid – John Belcher of Anchor Trust – earning £327,000 . Bramah said the boards of registered social landlords should reflect their association's performance, as well as public sector pay.
Local authority chief executives have greater responsibility but generally earn far less. 'It looks as if obscene amounts are being paid [by RSLs] when the results for communities and hard-pressed people looking for housing are not there,' Bramah said.
The pay of RSL chief executives has also been criticised by Unison, which contrasts it with below-inflation rises given to housing officers and care staff. Peter Challis, the union's national officer for housing and local government, said: 'It's a question that the new regulator [for social housing] is going to have to revisit.'
Clare Miller, director of regulation at the Housing Corporation, said it had no power to interfere in salaries awarded by RSL boards but added that they should be proportionate and linked to performance.
Senior figures at both the corporation and English Partnerships received significant rises last year ahead of the launch in December of the Homes and Communities Agency and Tenant Services Authority. The TSA is advertising 'six-figure salaries plus benefits' for prospective executive directors.
Anchor Trust says it awarded Belcher a 32% rise last year because it needs high-quality leaders to manage its care and other services, and is competing with the private sector.
PFoct2008
