ALMOs facing housing association move in PM's public services reform

Published by Ross Macmillan for 24dash.com in Housing and also in Local Government

Arms-Length Management Organisations (ALMOs) face being moved into the housing association sector to improve their ability to "invest, diversify and innovate" under plans drawn up by the Government.

That option was presented in yesterday's Open Public Services reform White Paper launched by David Cameron.

The Government wants to open up the delivery of public services to the private and voluntary sector and has housing, among other public services, on its radar.

By making public services more open it says it will give more freedom and professional discretion to those who deliver them, and provide better value for taxpayers’ money.

The paper said the Government will consult on how to "stimulate" more openness and innovation in public services through new types of providers within the public sector, where this will improve services and give better value to the taxpayer.

This will include, it said, whether semi-autonomous public sector bodies should now be made fully autonomous, for example, by moving Arm’s-Length Management Organisations (ALMOs) in social housing into the housing association sector to improve their ability to invest, diversify and innovate.

Most ALMOs have now completed their Decent Homes programmes and are, naturally, having their contracts reviewed by their councils. Several ALMOs have returned in-house to councils - such as Hillingdon, Ealing and Slough - while others have been converted into housing associations to increase borrowing power.

Warrington Council and Stockton Council have both converted their ALMOs into housing associations.

The Government also wants to shift power directly to the individual through personal budgets, often delivered as direct payments.

The paper referenced the new Universal Credit - to replace the welter of out of work benefits, housing benefit and tax credits from 2013 - which will be paid directly to tenants.

Provision will be retained for the housing component to be paid direct to social landlords, but it will be on the case of vulnerable tenants.

The paper also said the Department for Communities and Local Government will work with councils and other partners to explore a personalised budget approach in the Supporting People scheme, a programme.

The Government has come under intense pressure from charities and support providers to restore a ring fence to the programme, after councils - who have had their budgets slashed - have been making bigger cuts to the programme than expected.