Value for Money Statement

Transcription

1 Value for Money Statement April 1st 2013 March 31st 2014 Doing more with your money

2 Our vision We are committed to making a difference to the lives of our customers and the neighbourhoods you live in Our five year corporate plan, A Place for Everyone, sets out what s important to us and you our customers. It sets out our plans to grow our business, meet our aims and deliver the services you value. This plan outlined our vision to: Build new homes, to provide greater choice and help improve neighbourhoods Work proactively and innovatively to benefit individuals and communities Build stronger neighbourhoods by helping people develop skills and confidence, and develop opportunities Transform our business over the next five years putting partnerships at the centre of all that we do One of the most effective ways we can achieve all this is by making sure the homes we provide and the services we deliver are more efficient. We believe that value for money isn t just about how much things cost but how much good we can do. That s why we carefully monitor every pound we spend and measure the true effect it has.

3 Our aim We want to continue to be more efficient and invest in the homes and services we provide Our aim is to reduce what we spend by 15% between 2012 and The savings we make will be invested back into improving our customer services and helping us build even more new homes for the future. Some of the ways we will achieve this is by: Maximising return on our assets and getting more for the money we spend Finding new ways to generate income and grow our business Making sure the services we provide are efficient and effective Helping to make sure that our neighbourhoods are good places to live and that everyone has access to services and opportunities Ensuring all our staff work as efficiently as possible Involving customers to help us find more ways to provide better value for money Providing value for money training to our Board members and customer groups

4 So, how are We made savings in the following areas: 1,000, ,000 we doing? We ve already made some great progress but still have lots more to do 1,200,000 We saved 1.2 million because our previous investment in new boilers and heating systems meant fewer replacements were needed during the year. 3,500,000 We reduced our spend on major repairs by 3.5 million by reviewing our approach. 816,000 New ways of managing our business and streamlining processes have saved us 816,000. We have reinvested some of this money in areas where it was needed most: 339,000 We spent an extra 1 million getting empty homes ready for the next tenant. This was because of changes and reforms made to the way benefits are paid, meaning the number of properties that became empty increased by 26% and we lost more money through properties being empty for longer. We have tackled this by working hard to attract to new customers. 1,997,000 We generated a net saving of 1,997,000. This has been used to improve the financial strength of the company and increase our capacity to build new homes. We work closely with other organisations to bring in extra funding In 2013/14 we brought in 3 million of additional income from other organisations and funding bodies. This included: 300,000 to make our homes greener 900, ,000 to help older and vulnerable people to live independently We invested 339,000 in supporting people to deal with the effects of welfare reform. This included helping them to find work, get online and access affordable credit. 1,200, million to build new homes 427, ,000 We invested 427,000 in changing the way we do business so customers have access to more tailored services. 600,000 to help customers into work and training and reduce anti-social behaviour

5 We compare our costs to other housing associations to see where we can be more efficient. We compare our costs and performance to similar housing associations to see where improvements can be made. Here s how we re doing: Every three months our management board reviews the overall performance of the company, including how we are performing financially, how we are delivering services to our customers and how we are making a difference in your neighbourhood. They then look at how we are performing compared to similar organisations across the UK and whether we are on track and what we need to do to meet our targets. Top 25% for housing management costs Top 25% for cyclical maintenance costs Lower 50% for cost of managing major works Lower 50% for successfully resolving anti-social behaviour cases Here s how our costs measured up in 2012/13: Helena Similar housing associations national average Top 25% for void work costs, that s preparing homes for new tenants Lower 50% for satisfaction with your neighbourhood Cost of managing the company Top 25% for satisfaction with the quality of our homes Lower 25% for cyclical maintenance costs Top 25% for satisfaction with repairs and maintenance Lower 25% for responsive repair costs Cost of major repairs 1, Top 25% for satisfaction with our housing management service Lower 25% for rent arrears Top 50% for back office costs Lower 25% for the average re-let time for empty properties Cost of planned and routine maintenance 1, Average for major works costs The cost of major repairs was higher than average because of the work we have done to improve the energy efficiency of our homes. By delivering 10 million worth of improvements we have made them warmer and greener, while lowering fuel bills for our customers. We have now reduced the cost of planned and routine maintenance by extending the period between our pre-paint programme from six to eight years. We have reduced the cost of cyclical maintenance in 2013/14 and carried out a further value for money review that showed our costs were competitive. We are still looking to improve our costs in this area by an ambitious 3% this year. We are aiming to improve our responsive repairs by ensuring that we complete jobs as efficiently as possible to prevent repeat visits to customers homes. During the last year, rent arrears and the time it takes to re-let our homes were affected by changes to welfare benefits and challenges facing the national economy. We looked at ways we could speed up the re-let process and changed our services to provide more support in helping customers find work, manage their finances and reduce arrears.

6 What matters to you also matters to us Here s how we are doing in the service areas that matter most to you: 2011/12 90% 86% % 99.9% 67% 2012/ /14 Target Responsive repairs completed right first time 92% 91% % 99.9% 67% 92% Customer calls resolved on the first call 95% % 99.9% 67% 93% 95% Average time to re-let an empty property (days) Current rent arrears Decent Homes Standard Energy efficiency (SAP) rating % 99.9% 71% Stayed the same Improving /met target Getting worse Getting worse Met target Stayed the same One of the ways we dealt with ongoing welfare reforms was the creation of the Tenancy Sustainment team and the introduction of the Tenancy Hub. Under this new set up we can quickly assess a customer s needs and assign one dedicated officer to deal with their case, looking at everything from finances to health issues. This has led to a better service and better results for customers and much better value for money overall. Anne Meadows, Team Leader Tenancy Sustainment Team Our new approach has led to a better service and better results for customers and much better value for money overall. Switching to a weekly bidding cycle means that waiting times are reduced. Anti-social behaviour satisfaction with outcome 84% 79% 60% 80% Overall satisfaction 92% 90% 87% 90% Getting worse Getting worse Customers told us that they found it frustrating that newly available homes were advertised every two weeks. Switching to a weekly bidding cycle means that waiting times are reduced. At the same time, surveyors have been given tablet computers so they can instantly arrange for work on empty properties to take place and ensure customers get their keys that much quicker. Tom Bate, Voids Partnership Manager

7 Getting the most out of our assets We are working to make sure we get the best use and value from the properties we own and that they are fit for our customers both now and in the future. Looking after homes On an annual basis we measure and compare the financial performance of the housing stock we own. This enables us to decide whether to invest in them, sell them and use the proceeds to build new homes, or convert them so that they are better suited to the needs of our customers. Any income generated from selling units is then used to build new homes. We are one of only five other housing associations in the UK currently piloting an approach that allows us to assess the financial performance of our assets. We are also developing new ways to deal with homes as they become empty. We have identified properties with a total value of 19 million that will be sold once they become empty so that we can change the types of homes we own to better meet the needs of our customers. By working in this way, using the knowledge we have about our estates and listening to our customers we can ensure any changes we make have a positive social and financial impact. Building new homes Over the next five years we plan to build 1,400 new homes. This will provide much needed affordable homes as well as increase our income and reduce the average cost of managing our homes. We are working with local builders to use the land that we own to build low cost homes. Our aim is to reduce the cost of building a new home by 20,000. To achieve this we will use land we own more effectively and work with builders within the area to negotiate better deals on development costs. This will generate 28 million of efficiencies over the five year development programme, enabling us to build more new homes with the money we have available. We have already converted six 3 bedroom properties into 1 bedroom flats and are in the process of converting vacant commercial units into homes. Through a grant from the Homes and Communities Agency this has meant less rent being lost and more homes available for customers who would like a smaller property. Work started this year on converting three bedroom homes in areas of lower demand into one bedroom flats. The work was driven by welfare benefit changes with more people seeking smaller homes than ever before. We are doing these conversions sensitively and thoughtfully, so that customers who need to downsize are still getting great quality too. The schemes are proving very popular and we are hoping to carry out at least 50 such conversions over the next three years. There s always a lot of interest from people passing by and it gives me great satisfaction to know Helena are responding by investing in customer needs. Joe Campbell, Stock Condition Surveyor It gives me great satisfaction to know Helena are responding by investing in customer needs.

8 Our neighbourhoods Every day we are working hard to help make your communities better places to live A recent study by Sheffield Hallam University showed that our 97 million spending power each year helps to add 47 million to the local economy and create 1,300 jobs. 2,800,000 We estimate that the work we do to support customers, including young people, had a net social value of 2.8 million, helping to reduce anti-social behaviour, improve lives and build stronger communities. 2,600,000 Through our involvement in Fusion21, a specialist procurement consortium working to create jobs in local areas, we contributed to the creation of 119 jobs and added 2.6 million to the economy. For every 1 spent by the Employment Team our Social Return on Investment has been Our aim is to help customers into employment and improve their skills. By working with partners, employers and our development team, we are giving customers an advantage when seeking work. For every 1 spent by the Employment Team our Social Return on Investment has been Last year through the Make it Happen project we hosted 765 events and reached 3,867 young people in Thatto Heath, Four Acre, Parr and Fingerpost. While we help young people develop valuable life skills they also help us too. They tell us about their communities, what they feel is important and what we should be doing to ensure we provide the right services in the right ways. We organise and manage job events, weekly support groups and our Incidental Client Expense (ICE) fund. The fund allows us to offer small grants towards essential purchases such as interview clothing and work wear, travel passes, legal checks or business startup costs which may otherwise prove a barrier to gaining employment. Roy Williams, Neighbourhood Employment Coordinator While we help young people develop valuable life skills they also help us too. Caroline Roberts, Young People s Project Officer

9 How you are involved We want as many customers as possible to get involved in what we do and how we do it This year our Customer Excellence Panel has been renamed the Value Improvement Panel to take account of its wider role in assessing value for money and risk. Made up of Helena customers, the group continually reviews our performance, challenges how well we are delivering services and where we can make savings. Results are then given to our Executive Team and Board of Management to make sure tenants views are taken into account. Over the last twelve months the Value Improvement Panel have undertaken further training, developed an action plan with clear measures and targets and gave a presentation at the biggest tenants and landlords event in the country. Other opportunities include: We realise that the funding cuts and issues like Welfare Reform make it harder for Helena to do as much as they did in the past but we don t want the high standards they have become known for to drop. Consultation is the key, and we will be constantly challenging Helena to find ways to do more with less. Marlene Newman, Customer, Tenant Board Member and Tenants and Communities Committee Chair Consultation is the key, and we will be constantly challenging Helena to find ways to do more with less. A monthly tenant survey to provide up to date information on how our services are performing from a customer point of view Customers being involved in a number of projects to develop services, including the development of a new Helena Deal A new Tenants and Communities Committee has been formed with powers to make decisions about services, budgets and policies A yearly annual report which highlights how we are performing against the targets set by the Value Improvement Panel as well as how well we are doing compared to other similar housing organisations It is essential that tenants have a say in how services are delivered. The old idea was that the organisations knew best but this does not work and can be counterproductive. Helena needs our local knowledge and our insight into how things work, and together we are making things better. Jennie Williams, Customer and Value Improvement Panel Member Helena needs our local knowledge and our insight into how things work, and together we are making things better.

10 Our future plans We take pride in delivering on our promises and are passionate about our plans for the future In 2014/15 we plan to achieve the following efficiencies: 344,000 by reviewing our staffing needs, looking at how we can improve the Green Space service and making sure we get better value from the things we buy 1,000,000 by carrying out repairs when they are needed and not before 249,000 by making sure that rent is not subsidising other services We plan to reinvest: 250,000 in a partnership opportunity with Golden Gates Housing Trust, which, if this goes ahead will provide economic opportunity for existing and future customers, as well as allow us to build more affordable homes 75,000 in services tailored to meet the needs of our customers 1,000,000 on empty properties to help respond to the impact of welfare reform At March 31st 2014, we had outstanding loans in excess of 120 million. Our strengthening surplus position enables us to service the historic debt we have, whilst limiting the amount of future debt which we need to raise in order to fund the large expansion in our new build programme. This gives us a competitive advantage in the areas in which we operate, and gives us the ability to re-invest in an increasing number of new homes in our neighbourhoods with the social, economic and environmental benefits that brings. 1,400 Over the next five years we plan to build 1,400 affordable new homes. By getting better deals from local builders and using the land we already own more effectively we aim to save 28 million and reduce the cost of building a new home by 20,000.

11 Share your thoughts Your feedback is really important to us. So, if you have any thoughts or comments about our Value for Money Statement, please let us know: If you would like to find out more and read the full Value for Money Self-Assessment, visit