Council protests have forced a government U-turn on plans to freeze housing department's management allowances
Housing minister Nick Raynsford told the housing liaison group this week that he has decided to provide an extra £21m for housing management next year.

This reverses proposals, announced last month, to freeze management allowances for the fifth year running (Housing Today, 25 November). Ministers had previously argued that holding down the allowance would promote efficiencies.

Councils argued that continuing the freeze ignored the housing management Policy Action Team's view that cash should increase to pay for more intensive management on estates.

But the extra money will be seen as no more than a Christmas stocking-filler since it represents only a 2 per cent increase on last year's allowance, or £7 for every dwelling per year.

A Department of the Environment Transport, Regions spokeswoman said officials were "aware of local authority concerns and the recommendations of PAT 5, but we didn't know the money would be available when we started the consultation."

She added that the cash was part of a £50m pot earmarked for local authority efficiencies in the comprehensive spending review - but that Raynsford had been competing with other priorities for the cash.

Local Government Association housing chair Paul Jenks said: "Clearly there is still a long way to go but this is a welcome step. We're glad there's been this flexibility and hope it will be built on in the future."

London Housing Unit senior policy and research officer Sylvia Carter said: "We are pleased that the government has recognised that a continuing freeze for the fifth year running would have been detrimental to local housing management."

But she added: "We should not be under any illusions that an extra £7 per dwelling per annum can deliver the more inlusive and co-ordinated working in the priority areas identified as suffering social exclusion. The principle is right, but it's not a magic wand."

Source

Housing Today