The not-for-profit organisation responsible for co-ordinating home improvement agencies is to go it alone after the government announced it was awarding the new contract to a private company
Care & Repair England said this week it was shocked at the decision to dump it after a 13-year relationship, in favour of Collective Enterprises Limited.

The appointment is for four years from 1 April 2000, although it remains "subject to detailed negotiations".

Care & Repair plans to use its experience and contacts to set up in direct competition to the government's newcomer.

But the funding decision means that some of Care & Repair's 24 staff will lose their jobs.

But Chair Peter Archer said: "We have lost half of our income, so realistically some staff will face redundancy."

In a written parliamentary answer, housing minister Nick Raynsford acknowledged Care & Repair's "valuable work" but said Collective Enterprises offered "significantly better value for money".

DETR officials refused to grant a request by Care & Repair to hold off the announcement until it had had a chance to discuss things with housing minister Nick Raysnford, who was still in hospital.

Archer added: "We believe the government is not following its own advice that quality is integral to Best Value. This sends out an appalling message to local authorities. Our decision to carry on is not petulance. If we had lost the contract to a respected competitor we would have done all we could to help them."

CEL consultancy manager Sally Halliwell insisted that organisation had "wide ranging skills and experience". She could not comment on whether CEL would take on Care & Repair staff.

CEL intends to set up a charitable foundation to seek donations. Halliwell added: "We believe that there is scope for a higher level of private sector funding."

John Barker, chief executive of Moat Housing Group, said he was "surprised and disappointed".

He said: "Care & Repair agencies lack an adequate national funding framework for their growing role and need a strong advocate: I trust that the decision to appoint Collective Enterprises recognises this."

Hanover HA national care and repair manager Keith Williams said the decision was a surprise, but they looked forward to developing a successful relationship with the new co-ordinator.