Press Release

Social housing regulator outlines plans for cutting £3.5 million in running costs

Date: 27 January 2010     Ref: TSA 03/10

The social housing watchdog plans to cut its running costs by about 10% next year (2010-11), while doubling its remit when it takes on responsibility for regulating local authorities.

The Tenant Services Authority (TSA) will reduce its budget to £35 million – down from £38.5 million this year. The TSA has already identified £2 million in savings during its first year by reducing information technology and legal costs and by sharing office space with other Government agencies.

But the full extent of efficiencies stretches further than this. Within its reduced budget, the TSA also intends to fund the £1.8 million programme to inspect housing associations – costs that the Audit Commission met in the past.

The TSA currently regulates housing associations with two million social housing homes. From 1 April, the TSA will also become responsible for regulating local authorities and arm’s-length management organisations who combined own two million homes.

The TSA Board, which met today, has approved the proposed budget for next year, which is now subject to agreement with the Department for Communities and Local Government (CLG).

Chairman Anthony Mayer said, “The next few years are going to be tight financially across central and local government, and there’s a renewed and welcome focus on the need to control public spending and deliver value for taxpayers’ money.

“We have already made clear our plans to reduce red tape in the social housing sector. We will deploy our people where they can make the biggest difference. For 2010-11 we will focus our work on supporting those organisations with the greatest performance challenges – working with landlords to deliver a fair deal for their tenants.

“We are leading by example by demonstrating value for money in the social housing sector for the taxpayer and Government.”

The TSA Board also agreed to the organisation publishing all transactions of more than £1,000 on the TSA’s website as part of its drive for transparency and accountability.

Ends.

For media enquiries, contact the press office on 020 7393 2094/2118/2115 or by email pressoffice@tsa.gsx.gov.uk

Notes to editors:
1) The TSA’s 2009-10 budget was £38.5 million. The 2010-11 budget envelope approved by the Board is £35 million. This equals a cut of 9%. However the value for money the TSA will deliver as a result of this budget is higher than this, closer to 15%, because of the extra £1.8 million in inspections costs that will be met by the TSA from 1 April.

2) The Tenant Services Authority (TSA) is the independent regulator for social housing. It launched on 1 December 2008 and currently regulates housing associations. From spring 2010, subject to Parliamentary approval, the TSA will also regulate other providers of social housing, such as local authorities and arm’s-length management organisations.

3) The TSA is consulting with social housing tenants and their landlords, as well as stakeholders, to develop new standards to improve services for tenants. The statutory consultation, which begun on 12 November 2009, will close on 5 February.

4) The TSA’s Board meetings are open to the public and Board papers are available at www.tenantservicesauthority.org/server/show/nav.14453