YHN Board, May 2015

Board Tuesday 5 May 2015 at 5.00pm Meeting to be held at YHN House, Benton Park Road, Newcastle upon Tyne.

Contact: Jill Davison (telephone: 0191 278 8624 email: jill.davison@yhn.org.uk)

AGENDA Introduction items

Timing

1

Reminder to switch off mobile phones

5.00

2

Apologies for absence

3

Declarations of Interest

4

Chair’s Items

Page No.

Verbal

Items for Decision Governance 5

Finance & Resources Committee Annual report

5.10

1-3

6

Board Membership

5.20

4-7

5.25

8-24

Financial 7

YHN Year end results

Strategic 8

YHN The Future

6.00

Verbal

9

Value for Money

6.10

25-45

10

Income Management Strategy

6.30

46-78

6.45

79-88

Items for approval 11

Minutes of 24 March 2015

12

Any Other Business

Items for Information 13i

Health & Safety update

89-99

13ii

Delegated Decisions

13iii

Petitions

102

13iv

Board Forward Plan 16 June

103

13v

Committee minutes - Customer & Service Delivery 10 November - Finance & Resources Committee 15 January

104-108 109-113

13vi

Universal Credit update

114-119

13vii

Digital by Choice

120-124

100-101

To exclude the press and public during discussion of agenda item 14-16 because of the likely disclosure of confidential information. The definitions of what is considered confidential are contained within Section 16 of the Company’s Standing Orders.

Protect not for publication – Items for Decision 14

Byker Contract

15

Confidential minutes 24 March 2015

6.50

125-129 130-132

Protect not for publication – Items for Information 16

Finance and Resources Committee 15 January Confidential minutes

133-134

5 Board 5 May 2015 Finance & Resource Committee Annual report Report by Chair of Finance & Resource Committee

For Information 1.

Background information

1.1 This report provides a summary of the work of Finance & Resource Committee from April 2014 to January 2015.

1.2 The purpose of the Finance and Resources Committee is to keep under review the financial position of the organisation, to ensure that suitable arrangements are in place to secure economy, efficiency and effectiveness in the use of all resources and that the arrangements are working effectively and to help the Board fulfil its statutory obligations as an employer including such matters as training and development, equality and diversity and health and safety.

1.3 Within the scheme of delegations, the Committee is responsible for the following (in relation to YHN and the HRA): 

Income Management;



Key Information Technology (‘IT’) Governance functions (including Freedom of Information, Data Protection and Environmental Information Regulations) and initiatives;



Key IT functions and initiatives;



Key Organisational Development (‘OD’) functions and initiatives;



Key Human Resources (‘HR’) functions and initiatives



Your Homes Newcastle’s responsibilities as an employer;



Corporate Procurement;



Treasury Management; and



Creation of, review of and re procurement of Service Level Agreements.

In accordance with the Articles of Association, Board has delegated to the Committee responsibility for the following (in relation to YHN and the HRA): 

Monitoring and reviewing key finance strategies and initiatives



Reviewing and monitoring income management.

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Reviewing and monitoring Information Governance plans, strategies and initiatives to ensure that Your Homes Newcastle has robust systems and processes to meet its statutory and regulatory requirements.



Reviewing and monitoring key IT plans, strategies and initiatives.



Reviewing and monitoring key HR plans, strategies and initiatives to ensure that Your Homes Newcastle has an adequate and effective HR function that meets statutory and regulatory requirements.



Reviewing and monitoring key OD plans, strategies and initiatives.



Review the financial implications of service reviews as reflected in the budget.



Reviewing and monitoring Treasury Management plans and strategies;



Development and implementation of YHN’s Procurement Strategy;



Providing guidance on the development of Procurement Proposals arising from the appraisal of options for service delivery;



Ensuring that equality and diversity issues are embedded within Your Homes Newcastle and its employment practices.



Ensuring that effective health, safety and welfare policies are in place.



Consider positive practice from other organisations and how it can be replicated.

1.4 The Chair of the Committee is Elaine Snaith, and the vice-chair is Phil Dibbs.

The Head of Finance is the lead officer. The Committee meets on a quarterly basis, and this report covers the four meetings held between April 2014 and January 2015.

1.5 During the period Committee was only quorate at three out four meetings.

2.1 Work plan summary 2.2 During the course of the period Finance & Resource Committee has discussed reports and presentations in the following areas: 

Finance: o Quarterly HRA 30 Year Model reports until October 2014 o Quarterly Treasury management Strategy and updates until October 2014 o Quarterly Capital Programme Expenditure updates until October 2014 o Finance Service Review Implementation update



Income o Quarterly updates on rent arrears o An annual debt write off report for rent arrears and sundry invoices Page 2 of 124



Human Resources and Organisational Development

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o People Strategy o Quarterly sickness monitoring reports o HR Policy: Dignity at Work o Workforce Demographics 

IT o IT Strategy o YHN Business Strategy ICT Plan 2013-2016 o Information Governance



Equality & Diversity o Draft Equality & Diversity Strategy and Action Plan



Procurement Strategy Update

2.3 During the year some Finance reports delegated to Committee were discussed at Board due to the timing requirements for approvals, for example YHN and HRA outturn reports and YHN Budget.

2.4 It has been a year of significant change for the Committee as a result of the decision by NCC to take back the strategic management of the HRA. Committee is no longer in a position to make decisions about any of these areas. YHN Board received a report from NCC officers about what board member roles will be in this area going forward. This clarified the role of Finance & Resource Committee in relation to the HRA. Following the implementation of disaggregation there will be a requirement for much greater scrutiny of YHN finances.

3.

Conclusion and recommendations

3.1 The Finance and Resources Committee Chair will present the conclusions verbally to the Board.

3.2 Board is recommended to: 

Note the work of Finance & Resource Committee over the period April 2014 to January 2015.

Background Papers Finance & Resource Committee minutes April 2014 to January 2015 Scheme of Delegations Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, please contact Lisa Forrest by telephone on 0191 278 8616 or email lisa.forrest@yhn.org.uk

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Board 5 May 2015 Board membership Report by Company Secretary For Decision

1.

Background information

1.1 The Board is made of up 18 Board Members from three constituent groups (six tenant members, six council nominees and six independent members) and an externally appointed independent Chair.

1.2 Council nominees are selected annually by Newcastle City Council (‘NCC’) and tenant and independent members are appointed for a three year term.

Tenants and independent members are required to stand down on a rotational basis at the Annual General Meeting (‘AGM’). The Board approves the appointment of both tenant members and independent members and in addition NCC approves the appointment of new independent members too.

1.3 The Board received a report in March with regard to the Independent Board members, due to the casual vacancy and the recruitment process required to fill the Independent vacancy, as Nitin Shukla retires after completing his full three terms. This report presents the details with regard to tenant board members, and the independent member due for retirement by rotation.

2.

Board Membership 2015

2.1 At the AGM on 22 September 2015, the following Board Members are required to stand down: Tony Moore, Tenant Board member since 2012, Tony has completed one term and is eligible for re-election.

Lisa Doherty, Tenant Board member since 2011, Lisa has served two terms of office and is eligible for re-election for her final term.

Phil Dibbs, Independent Board member since 2012, Phil has completed one term of office and is eligible for re-election.

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All current Board members have formally indicated to the Company Secretary that they wish to stand for re-election.

3.

Next steps

3.1 The Board Members wishing to be considered for re-appointment will be required to submit a written statement to demonstrate how they meet the Board Member core requirements and how their skills and knowledge have benefited YHN. 3.2 It is not the intention to interview current Board members, their applications along with outcomes from the board appraisal, board and committee attendance and their wider contribution will be considered by a panel consisting of the Chair and two other Board members.

3.3 The Board members who have put themselves forward to be part of the selection process are; Lynn Stephenson, Paul Dutton, Lisa Doherty and Phil Dibbs.

3.4 It is proposed the panel for the consideration of independent applicants in the external recruitment process will be the Chair plus Lisa Doherty and Phil Dibbs.

3.5 For the consideration of re-appointments, it is proposed that the panel will consist of the Chair plus Lynn Stephenson and Paul Dutton.

3.6 The Panel will recommend the appointment of Independent and Tenant Board Members to the Board for approval at the July Board meeting. New and reappointed independent Board Members will also be recommended to NCC for appointment.

3.7 Appointments will be confirmed at the AGM on 22 September 2015.

4.

Vice Chair arrangements

4.1

The resignation of Judith Common, and the retirement of Nitin Sukla at the AGM in September 2015, has resulted in the two Vice Chair positions becoming vacant.

4.2

The formal procedure for appointing a Vice Chair is covered under section 32 (3) of our Articles of Association which states; “The Board may appoint up to two vice or deputy chairs to act in the absence of the Chair on such terms as the Board shall think fit”

4.3

The responsibilities of the Vice Chair are: 

to assist and support the Chair in fulfilling his/her duties and responsibilities;



to deputise for the Chair in his/her absence; Page 5 of 124

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to assume responsibility for a particular area of responsibility or interest as may be agreed by the Board, such as chairing committees;



to meet with the Chair and Chief Executive as required in between Board meetings; and



to undertake such other duties as may be delegated to them by Board

4.4

Board members interested in putting themselves forward for one of the two Vice Chair positions are asked to speak to the Chair directly. In the event that there are more than two nominations for the positions then a ballot will be held at the July meeting.

4.5

The Vice Chairs will be appointed at the AGM in September for a term of one year.

5.

The Business Implications

5.1

Mission and Strategic Objectives: The work of the Board contributes to all of YHN’s strategic objectives and its Statement of Purpose.

5.2

Value for money/efficiencies: It is the Chair and the Board’s responsibility to provide strategic direction and to make sure that resources are used for maximum results.

5.3

Resources (financial, property, technological or human): There is an existing budget allocated to cover all known costs and to cover the allowances paid to Board Members.

5.4

Impact on services/performance: The Board has a range of skills and experience and the retention of members for a second and third term would ensure that these are not lost to the organisation.

5.5

Outcomes for tenants/leaseholders: Board Members contribute to decision making to make sure that tenants and leaseholders receive the services they need.

5.6

Risk (reputation, relationship): The re-appointment of Board Members for a second and third term means that the Board could be under representive of certain groups , although recent appointments have improved the overall diversity of the Board.

5.7

Legal: The recruitment and appointment of Board Members is conducted in accordance with the Articles of Association.

5.8

Equality and Diversity: The Board Succession Plan will explore whether the Board is broadly representative of the community it serves. Targeted recruitment will provide opportunities for those groups who are underrepresented on Board to put themselves forward for Board Membership as well as addressing any skills deficits.

5.9

Stakeholder Involvement/consultation: None. The requirements for appointing Board Members are set out in the Articles of Association.

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6.

Recommendations

6.1 The Board is asked to: 6.1.1 agree the re-election process for independent and tenant board members for 2015; and 6.1.2 agree the composition of the panel for the recruitment of the independent member at 3.4; and 6.1.3 agree the composition of the selection panel to be involved with the re-election process at 3.5.

6.1.4 submit any expressions of interest for the position of vice-chair directly to the Chair.

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk

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Financial and non-financial May 2015

YHN performance results 2014-15

7

Page 9 of 124

• Next steps

– Top 20 by Strategic Objective

• Non-financial:

– Expenditure – Income – Reserves and cash

Financial:

Introduction

5 May 2015

YHN performance results

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Supplies & Services

Transport Costs

Premises Costs

Employee costs

617

608

224

180

3,469

3,321

YHN operating costs comparison

2014

2015

5 May 2015

YHN performance results

26,757

25,715

YHN Expenditure - ÂŁ31.8m

7

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Category Employee costs Premises Costs Transport Costs Supplies & Services Total

£'000s 2015 25,715 180 608 3,321 31,840

£'000s Change -1,041 -44 -8 -148 -1,242

5 May 2015

YHN performance results

£'000s 2014 26,757 224 617 3,469 33,080

• Reduced spend across all categories in the accounts

YHN Expenditure

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5 May 2015

YHN performance results

– YHN no longer hosting Byker Trust staff on its payroll

– Reduced spend following large restructures

– High one-off redundancy costs last year

• Biggest reduction came in employee spend

YHN Expenditure

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Other Income

Other Management Fee

HRA Mgmt Fee

1,353

650

3,077

3,119

YHN Income comparison

YHN Income

2014

2015

5 May 2015

YHN performance results

26,664

28,099

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Category HRA Mgmt Fee Other Management Fee Other Income Total

£'000s 2015 28,099 3,119 650 33,883

5 May 2015

YHN performance results

£'000s £'000s 2014 Change 26,664 1,434 3,077 42 1,353 -703 33,108 774

• YHN’s income has increased by £774,000 from the previous year:

YHN Income

7

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5 May 2015

YHN performance results

– Items re-categorised as management fees – Reduced charges to Byker Trust for set up support

• Other income has reduced:

• Previously, charge to HRA reduced in line with costs

• Despite the reduction in costs from last year, YHN has charged the HRA more

YHN Income

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5 May 2015

YHN performance results

• Reserves are contingency for future challenges

• This is added to current reserves of just £33k (£0.03m!)

• These profits are retained as reserves

• After interest and tax, YHN has made a profit of £2.05m in 2014-15

Reserves and Cash

7

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5 May 2015

YHN performance results

• YHN staff will work over the coming weeks to take responsibility for YHN’s cash flow

• YHN had no cash at 31 March, but had balances held by NCC of approx £2.75m

• YHN’s bank account opened 23rd April 2015

Reserves and Cash

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Reduce the number of sickness absence days per full time equivalent to 7.5 by 31/03/2015

The void rent loss amount not to exceed 1.07% during 2014-15

Collect 98.6% of rent and service charges owed (excluding arrears brought forward and void rent loss) during 2014-15

Target

10.8 days

(£1.61m)

(£1.22m)

7.5 days

1.45%

(£111.27m)

(£110.30m)

1.07%

99.46%

Year end actual

98.6%

Year end target

5 May 2015

YHN performance results

Year end

YHN Top 20 - Make the money deliver

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Implement workforce scheduling and mobile working for the concierge and NFS services by 30/09/2014

Repairs and Maintenance spend to be no more than 3% over the budget of £20.6m during 2014-15.

Achieve a £978k efficiency saving on the 2014-15 HRA running costs of £48.9 million by 31/03/2015

Generate an additional 6% (net surplus) from external business through Newcastle Furniture Service by 31/03/2015

Target

Workforce scheduling is implemented

3% budget tolerance (spend no more than £21.21m)

£978k

6% surplus

Year end target

Year end

5 May 2015

YHN performance results

NFS went live in February 2015

Concierge went live in December 2014

Figure to be provided at meeting

£1.23m

Figure to be provided at meeting

Year end actual

YHN Top 20 - Make the money deliver

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Achieve 100% success rate against the Key Performance Indicators, as agreed with Byker Community Trust and Leazes Homes, by 31/03/2015

No more than 0.39% of tenants to be evicted for rent arrears during 2014-15

82% of customers are satisfied with the overall service provided by YHN by 30/06/2014

Target

71.4%

(53 people)

(110 people)

100%

0.20%

Year end

5 May 2015

YHN performance results

(target achieved in Q1)

87.50%

Year end actual

0.39%

82%

Year end target

YHN Top 20 - work together to realise a brighter future

7

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Publish a business plan for Community Care Alarm Service (CCAS) by 30/06/2014

The average number of days taken to complete an investigation of anti-social behaviour cases not to exceed 46 days by 31/03/2015.

70% of people who finish an apprenticeship or Your Homes Your Jobs placement during 2014-15 to move onto further education, training or employment.

Target

Publish the plan

Year end

5 May 2015

YHN performance results

Business Plan was published in October 2014

42.3 days

(39 people)

(28 people)

46 days

83%

Year end actual

70%

Year end target

YHN Top 20 - work together to realise a brighter future

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Complete the procurement for a supplier of tenant broadband by 31/03/2015

Carry out a service review of Advice and Support, and Young Peoples’ service by 31/10/2014

Publish an evaluation report to determine the effectiveness of the welfare reform service review by 31/12/2014

Target

Access provided to Coniston Court

Complete the review

Publish the evaluation

Year end target

Year end

5 May 2015

YHN performance results

Tenants in Coniston Court accessing free wi-fi

Review completed

Evaluation report published.

Year end actual

YHN Top 20 - work together to realise a brighter future

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Publish a new Asset Management Strategy by 31/12/2014

Achieve 53% from our Sustainable Homes Index For Tomorrow (SHIFT) audit application by 31/03/2015

80% of all YHN estates to score over 70% in their 2014-15 Going for Gold inspections

Deliver 4,150 life cycle improvements by 31/03/2015

Target

Publish new strategy

Year end

5 May 2015

YHN performance results

Strategy published

55.7%

(86 estates)

(78 estates)

53%

85%

4725 improvements

Year end actual

80%

4150 improvements

Year end target

YHN Top 20 - create homes and neighbourhoods we can be proud of

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Finalise numbers in this presentation Scrutiny from audit Approval of financial statements Transition to new YHN operating model Continued updates on YHN finances in future

5 May 2015

YHN performance results

– Confirm target values for all top 20 targets – Scrutiny by Audit Committee (May 2015) – Report to NCC Cabinet (June 2015)

• Non-financial:

– – – – –

• Financial:

Next steps

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Board 5 May 2015 YHN Value for Money Strategy - Introduction Report by Director of Corporate services and Assistant Chief Executive For Decision 1.

Background information The YHN Value for Money strategy has been updated to reflect YHN’s changed trading conditions.

A strong influence has been the Homes and Community Agency (HCA) Value for Money Standard discussed in some detail below (section two). The Standard contains many areas of Value for Money (VFM) best practice for housing organisations.

Although YHN is not required to conform to this Standard, it has been used as a framework to refresh the VFM strategy.

1.1 Previous Strategy Written prior to HRA self-financing and welfare reforms, the last VFM strategy focussed on a target to drive out efficiency savings on YHN’s “controllable” budget (which included both HRA and YHN resources). The aims of the strategy were to: 1. Continue to make sure our services are as efficient as possible; 2. Continue to make sure we buy goods and services in the most efficient way possible; 3. Strengthen our value for money culture; and 4. Improve the way we measure, report and monitor value for money.

The implementation of this strategy was successful in the fact that 3% efficiencies were achieved for each year of the strategy’s term.

1.2 Why we are updating this strategy The strategy has now been updated to reflect YHN’s changed trading conditions. In particular: 1. YHN is now a service provider organisation to multiple clients; 2. YHN’s main client, Newcastle City Council (NCC) through the Housing Revenue Account (HRA), is now self-financing and so needs to Page 25 of 124

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demonstrate financial sustainability; 3. Following the NCC/YHN review, there is increased scrutiny of the YHN management fee and a new relationship with NCC; 4. YHN’s clients and their tenants are coming under financial pressure from Welfare Reforms and cuts to Local Authority budgets; and 5. The HCA is exerting pressure on housing organisations to demonstrate Value for Money.

Each of these factors is discussed below.

1. Multiple clients YHN is a management organisation for the HRA and two small housing associations. These clients are increasingly demanding that YHN demonstrate that it represents good Value for Money.

2. Self-financing As the management organisation for the HRA, YHN has a role to play to identify and deliver sustainable housing investment for the HRA. 3. Management fee scrutiny Following the YHN/HRA review, the management fee will be controlled by NCC. While YHN will have some latitude to operate independently within this bound, it will need to ensure that the management fee limit is not exceeded.

4. Central government austerity YHN’s clients are affected directly and indirectly by the impact of central government’s spending reductions. Welfare reforms are affecting tenants across Newcastle, and NCC’s ability to subsidise services is diminishing.

5. HCA Value for Money Standard It is stressed that, although this Standard does not apply directly to YHN, the lessons and themes are well worth exploring in full.

In 2013, it became a requirement for housing associations that own more than 1,000 homes to provide a Value for Money Statement in their annual accounts.

After the first year of submissions, 14 associations had their governance rating downgraded and a further 165 were sent warning letters for submitting a below-standard VFM statement.

This sharp response shows that the HCA intends to use the VFM Statement and the potential of a governance rating downgrade as the main tool to protect investment and assets.

2.

The HCA Value for Money Standard

2.1 The Value for Money Standard requires that a housing organisation should: 

have a robust approach to making decisions on the use of resources to deliver the provider’s objectives, including an understanding of the trade-offs and opportunity costs of its decisions; Page 26 of 124



understand the return on its assets, and have a strategy for optimising the future returns on assets – including rigorous appraisal of all potential options for improving value for money including the potential benefits in alternative delivery models - measured against the organisation’s purpose and objectives;



have performance management and scrutiny functions which are effective at driving and delivering improved value for money performance; and



understand the costs and outcomes of delivering specific services and which underlying factors influence these costs and how they do so.

To demonstrate to stakeholders that these measures are in place, the Board of the housing association is required to publish a rigorous, understandable, and transparent self-assessment of how it is achieving value for money. The assessment shall:   

enable stakeholders to understand the return on assets measured against the organisation’s objectives; set out the absolute and comparative costs of delivering specific services; and evidence the value for money gains that have been and will be made and how these have and will be realised over time.

What the Standard does not say At only one page in length (see Appendix One), the Standard is not detailed, and housing organisations have implemented it according to their own interpretations.

It is not intended to be a comprehensive direction to housing organisations on how to direct their resources. Nor does it set out the absolute cost of services that should be achieved. The goal is not to drive down costs to the detriment of quality.

HCA feedback Following the first year’s submission of Value for Money statements, the HCA issued guidance and feedback that described where some organisations had met its expectations better than others. The full feedback is found at Appendix Two, but some main learning points are:   

Be clear on the specific values of housing assets and make decisions based on this analysis; Favour systematic Value for Money gains over opportune one-off gains; Choose appropriate comparators when reporting performance and don’t try to cherry-pick the best performing areas; and Page 27 of 124

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

3.

The HCA’s aim is to have assurance that the Board have control over VFM and are leading an organisational approach of continuous improvement.

YHN’s interpretation of the Standard

3.1 The YHN Value for Money Strategy adopts the HCA standard and feedback in four priorities: Priorities We will:1. Understand our services and our customers to maximise efficiency and effectiveness 2. Help our partners understand their assets and invest sustainably to maximise future development potential.

3. Deliver real savings to our running costs and seek new income streams to optimise the fees we charge our clients.

4. Collect evidence of our performance and publish it openly and transparently for tenants and stakeholders.

These priorities will be implemented either through other YHN strategies as identified, or through the actions identified in the action plan.

4.

The Business Implications

4.1

Mission and Strategic Objectives: The Value for Money Strategy describes the organisation’s approach to fulfil the Strategic Objective to “Make the money deliver”.

4.2

Value for money/efficiencies: The Value for Money strategy sets out YHN’s approach to delivering efficiencies.

4.3

Resources (financial, property, technological or human): During the composition of the VFM strategy, no specific resource increases were identified.

4.4

Impact on services/performance: By understanding our services, our assets and being more transparent about how we are providing value for money, it is expected that performance will improve and resources will be freed to do more for tenants.

4.5

Outcomes for tenants/leaseholders: Tenants will have a clearer idea of YHN’s Value for Money performance and should benefit from savings made from better VFM performance.

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4.6

Risk (reputation, relationship): Failure to adopt a strategic approach to VFM may leave YHN at odds with a large part of the sector. Board members may not be able to take assurance that we are operating as we should be.

Resources may be consumed ineffectively and thereby lost to services that are important to our stakeholders.

4.7

Legal: YHN is not required to adopt the HCA VFM standard, but is recommended to adopt its principles as best practice.

4.8

Equality and Diversity and Community Cohesion: Improved equality outcomes inherently mean that we have achieved more for our money in line with our purpose and the objectives of our Equalities and Diversity Strategy.

4.9

Stakeholder Involvement/consultation: Feedback from tenants and stakeholders has been discussed in the strategy. It is expected that the production of an rigorous, understandable, and transparent Value for Money statement will prompt more and better conversations with stakeholders

5.

Conclusion and recommendations

5.1 To approve the YHN Value for Money Strategy.

6.

Implementation

6.1 See Strategy Action Plan.

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact James Clifford by telephone on 0191 278 8679 or email james.clifford@yhn.org.uk

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Appendix One – The HCA value for money standard Value for Money standard Required outcomes Registered providers shall articulate and deliver a comprehensive and strategic approach to achieving value for money in meeting their organisation’s objectives.

Their boards must maintain a robust assessment of the performance of all their assets and resources (including for example financial, social and environmental returns). This will take into account the interests of and commitments to stakeholders, and be available to them in a way that is transparent and accessible.

This means managing their resources economically, efficiently and effectively to provide quality services and homes, and planning for and delivering on-going improvements in value for money.

Specific expectations 1.1 Registered providers shall:  have a robust approach to making decisions on the use of resources to deliver the provider’s objectives, including an understanding of the trade offs and opportunity costs of its decisions  understand the return on its assets, and have a strategy for optimising the future returns on assets – including rigorous appraisal of all potential options for improving value for money including the potential benefits in alternative delivery models - measured against the organisation’s purpose and objectives  have performance management and scrutiny functions which are effective at driving and delivering improved value for money performance  understand the costs and outcomes of delivering specific services and which underlying factors influence these costs and how they do so.

1.2 Registered providers’ boards shall demonstrate to stakeholders how they are meeting this standard. As part of that process, on an annual basis, they will publish a robust self-assessment which sets out in a way that is transparent and accessible to stakeholders how they are achieving value for money in delivering their purpose and objectives. The assessment shall:  enable stakeholders to understand the return on assets measured against the organisation’s objectives  set out the absolute and comparative costs of delivering specific services  evidence the value for money gains that have been and will be made and how these have and will be realised over time

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Appendix Two – HCA feedback and guidance on VfM The Value for Money standard and self- assessment The Regulatory Framework, published in April 2012, included a new Value for Money (VfM) standard. This standard requires registered providers to articulate and deliver a comprehensive and strategic approach to achieving VfM in meeting their organisation’s objectives. Boards are also expected to demonstrate to stakeholders how they are meeting the standard. As part of that process, on an annual basis, they should publish a robust selfassessment which sets out in a way that is transparent and accessible to stakeholders, how they are achieving VfM in delivering their purpose and objectives. The standard sets a specific expectation that the assessment shall:  Enable stakeholders to understand the return on assets measured against the organisation’s objectives.  Set out the absolute and comparative costs of delivering specific services.  Evidence the value for money gains that have been and will be made and how these have and will be realised over time.

Different providers have taken different approaches to communicating their approach to VfM to stakeholders, and many providers have produced discrete, detailed selfassessments.

However, the 2012 Accounts Direction stipulated that all providers should undertake and publish within either their board report or Operating and Financial Review (OFR), an assessment of the performance for the year. The assessment should set out to stakeholders how the provider is achieving VfM in delivering its purpose and objectives, in accordance with the Regulator’s standard on VfM. Where providers publish further detailed material relating to the self-assessment, this should be clearly signposted within the OFR and published at the same time.

The first such self-assessments were included in providers’ accounts for 2013. Some also produced additional material in separate public statements, with links from OFRs. These have now been analysed by the Regulator. The Regulator does not prescribe a particular approach to meeting the requirements of the VfM standard.

The standard does not seek to direct where providers apply their resources, dictate organisational form, or encourage providers to focus on costs at the expense of quality of services. However, it does set out an expectation that self-assessments should be transparent to stakeholders and address the specific requirements set out above.

This section provides global commentary on the sector’s first self-assessments, drawing out common themes and issues. The main focus of this commentary is on the assessments provided as part of providers’ accounts (or linked to said accounts), and the extent to which they considered the specific transparency requirements of the standard rather than all aspects of providers’ response to the VFM standard.

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Considering the specific requirements of the self-assessment The majority of providers sought to address the specific requirements of the standard to some degree. However, the extent to which they did so varied significantly. Some self-assessments provided external stakeholders with sufficient information to reach an informed judgement about all aspects of a provider’s performance against the expectations of the standard. However, many others were less transparent, and had evidence gaps which would make it more difficult for an independent observer to reach an informed conclusion on one or more of the standard’s requirements.

Return on assets In general, the self-assessments provided least evidence to demonstrate providers’ understanding of the return on their assets. The self-assessments that provided the greatest degree of assurance showed an understanding of the value of assets in the context of delivering the organisation’s own objectives. This could include details of the financial, social or environmental return on those assets at a granular level, showing an appreciation of the differing values of different properties according to location or type of stock. Consideration was also given to how this information was used to inform business decisions and support delivery of the provider’s objectives.

For example, showing how their understanding of costs and asset values informed decisions on maintenance and capital investment, or decisions on retention, conversion or disposal of stock.

Self-assessments that provided less assurance on this aspect of the standard commonly did consider the value of assets, but often only for the organisation as a whole. For example, by citing the balance sheet valuation of the asset base. Many provided much less evidence of understanding variations in the performance of assets across their stock (for example by considering variations in the Net Present Value of their stock holdings, differences in the social return to tenants or the variations in environmental performance of their assets). Or, of how their understanding of the return on their assets informed the organisation’s decision making.

Absolute and comparative costs of delivering services In general, providers’ responses on costs were significantly more detailed and comprehensive than those on return on assets.

The self-assessments that provided a significant degree of assurance on this requirement of the standard were more numerous. These self-assessments provided quantified absolute cost data for a range of specific named services, and provided comparisons with the provider’s performance in previous years, and with the performance of a relevant peer group, sometimes, but not exclusively, using third party benchmarking services.

Comparisons were systematic, transparently allowing external stakeholders to identify areas of performance where the provider compared unfavourably with its peers as well as those where it compared well. Commentary was provided alongside the data which provided a balanced and reasonable interpretation of the results.

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Cost data was also clearly linked to output and effectiveness data on performance in delivering those services, allowing stakeholders to reach judgements on the efficiency of delivery of these services as well as economy.

Other self-assessments shared some, but not all of these characteristics. Providers often included some quantified cost data, but did not always provide meaningful comparative data, either with the provider’s own past performance or with other providers. Some providers did provide comparative data, but it was not clear who they were comparing themselves with, or whether this was a relevant comparison given their location and nature of their business. Others provided comparisons selectively, only showing data on services where they compared favourably with other providers, denying external stakeholders the opportunity to reach a judgement on their performance across the full range of their activities. Not all specialist providers publish peer comparator analysis, although a number did so, making use of qualitative as well as quantitative analysis. It was common for providers to cite use of benchmarking tools, to gain an understanding of the relative cost of delivering their services, but without providing much actual cost data to transparently demonstrate this understanding to stakeholders.

Evidence for past VfM gains and how these have and will be realised over time The sector’s response on past and future VfM gains was again mixed. In general, responses were more detailed with regard to past gains than future ambitions.

The responses that provided greatest assurance provided evidence of past VfM improvements; performance management and scrutiny functions to deliver further progress; and clear, measurable targets for future improvements. Evidence of past improvements demonstrated either or both cost savings and/or improved service efficiencies, with specific examples of savings or efficiencies placed in the context of the wider business performance and objectives. Where cost savings were identified, these were considered in relation to the service outcomes that were delivered, demonstrating a focus on efficiency and effectiveness, not just economy.

Measurable targets for future gains were set out, allowing stakeholders to hold providers to account on the delivery of these ambitions, and judge whether continuous improvements are being made.

Providers for whom the Regulator had less assurance generally only covered some of these areas. It was common for providers to cite specific examples of a cost saving generated by a past decision (e.g. a specific contract renegotiation or organisational restructure), but these were often isolated examples, not placed in the context of the provider’s wider business or objectives. There was not always clarity about how significant such savings were in the context of the provider’s overall cost base, what impact it had had on delivery of key outcomes, or how any savings had been utilised elsewhere to deliver the provider’s objectives. It was more common for providers to set out information of specific cost savings, than to set out systematic evidence across the business. Relatively few providers set out significant details of future ambitions for improvements, and often these were not measurable.

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Future self-assessments The Regulator considers the assurance it has for providers’ compliance with all aspects of the standard and the key focus is that providers should seek to deliver value for money throughout every aspect of their business. In regulating the VfM standard, the Regulator will consider a range of evidence from regular engagement with providers. However, the self-assessment remains a key element of the VfM standard and will continue to be a key source of (potential) assurance for the Regulator. Providers will need to be increasingly transparent in articulating their response to the standard to their stakeholders.

For future self-assessments, the Regulator will expect providers to more transparently demonstrate how they are addressing all of the specific requirements of the standard. The Regulator does not prescribe the precise form of providers’ responses or mandate the inclusion of particular data or specific metrics. However, the level of detail included in the self-assessments should be sufficient for any stakeholder reading the assessment to reach an informed view of the provider’s performance against all elements of the standard. In particular, the Regulatory Framework makes clear that providers should seek to deliver continuous improvement in both running costs and the performance of their assets. It should be clear to stakeholders from reading a provider’s self-assessment whether or not this improvement is being achieved, and what the provider plans to achieve in future.

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Value for Money Strategy

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YHN Value for Money Strategy What does the strategy cover?

What is Value for Money?

This strategy covers YHN’s approach and commitment to value for money (VFM) for our clients and their tenants.

VFM means making the money deliver (getting more “bang for your buck”), it’s not just about budget cuts.

This has been described in terms of three ‘E’s:  Economy – buying things cheaply  Efficiency – creating outcomes with minimal resources  Effectiveness – concentrating on the outcomes with the greatest impact

VFM should underpin everything we do at YHN. It is our duty to help ensure that the rent we collect is used for the best outcomes for the tenants of Newcastle.

This strategy supports the YHN Business Strategy by describing how we will “make the money deliver”.

There are also clear links to many of YHN’s strategies: Finance

Procurement

Income management

Equality and Diversity

Asset Management

ICT roadmap

What is the scope?

For such a wide subject, this strategy can’t mandate every action needed in every team across YHN. Instead, this strategy outlines the general approaches to VFM and set out some clear actions that will raise the profile of VFM across the organisation.

Why do we need this strategy?

1. New Operating Environment YHN is a management organisation for the Housing Revenue Account (HRA) for Newcastle City Council and two small housing associations (Byker Community Trust and Leazes Homes). These clients are increasingly demanding that YHN demonstrate that it represents good Value for Money. YHN should be able to articulate to Board the income and costs associated with delivering the contract with each client. YHN is competing against other management organisations to retain its housing contracts.

YHN has a refreshed relationship with NCC. YHN will be working towards outcomes set by the Council, which has assumed strategic oversight of the HRA. At the same time, YHN will have keep the freedom to generate income from commercial activities.

2. Self-financing

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In April 2012, the subsidy system was abolished and the HRA moved to selffinancing. Under this new system, rent collected is used directly to pay for all the services provided to tenants, repairs and maintenance costs, re-investment in our assets and servicing the costs of the HRA debt.

This brought greater freedoms to plan for the future, but also a greater responsibility to ensure business plans are sustainable and make good financial sense. As the management organisation for NCC’s HRA, YHN has a role to play to identify and deliver sustainable housing investment.

As the Modern Homes programme ends, HRA investment moves into a new era of maintenance, improvement and replacement. YHN will help direct the investment programme to ensure that HRA stock remains suitable and desirable into the future.

3. Management fee scrutiny Following the YHN/HRA review, the management fee will be controlled by NCC. While YHN will have some latitude to operate independently within this bound, it will need to ensure that the management fee limit is not exceeded. This will put a clear emphasis on demonstrating VFM through reduced costs, not just increased outcomes.

4. Central government austerity YHN’s clients are affected directly and indirectly by the impact of central government’s spending reductions. Welfare reforms are affecting tenants across Newcastle, and NCC’s ability to subsidise services is diminishing.

It seems that austerity measures will continue into the next Parliament, no matter which political party is elected. Perhaps the biggest challenge for our clients, the introduction of Universal Credit (UC), is yet to be faced. UC will put pressure on rent collection rates and back office functions. YHN should be prepared to mitigate these costs for its clients.

As UC is rolled out and more tenants are actively paying for their rent from their bank balances, we can expect more tenants to become engaged with how the YHN is using their rent money.

Value for Money in the housing sector The housing regulator, the Homes and Communities Agency (HCA) is increasing the pressure on housing associations to demonstrate how they are delivering value for money. For the regulator, the ultimate aim is to drive efficiencies out of the sector to release more house-building capacity.

Neither YHN nor NCC is directly impacted by the regulator, but Byker Community Trust is and when Leazes Homes reaches 1,000 units, it will be too. Although YHN is affected by the HCA VFM Standard, their guidance provides an excellent framework for YHN to structure its approach to values for money.

The regulator wants housing associations to: 

Have a robust approach to making decisions on the use of resources to deliver the provider’s objectives, including an understanding of the trade-offs and opportunity costs of its decisions;



Understand the return on its assets, and have a strategy for optimising the future returns on assets – including rigorous appraisal of all potential options for improving value for money including the potential benefits in alternative delivery models - measured against the organisation’s purpose and

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objectives; 

Have performance management and scrutiny functions which are effective at driving and delivering improved value for money performance; and



Understand the costs and outcomes of delivering specific services and which underlying factors influence these costs and how they do so.

This is best shown by an annual ‘Value for Money Statement’ that communicates to all tenants and stakeholders how YHN is performing.

VFM discussions have always generated a keen response in tenant consultations. It is intended that YHN’s VFM statement, by increasing transparency; will make it easier for us to work with tenants to r review our performance and identify areas for improvement. It is important that the statement is produced in a clear and accessible way.

Equality and Diversity issues Aside from it being our duty to tackle inequalities there is an undeniable link between diversity and value for money. This works in two ways  Internally – as YHN’s staff becomes more reflective of the customers it serves, the organisation is better able to meet their needs  Externally – by ensuring that we have a diverse customer base that reflects he population of the city, we are making sure that there we are reaching out to all our potential customers, and no group is underrepresented. Knowing our customers and their needs also enables us to use our limited resources more effectively, therefore improving VFM. Where do we need to be?

In order for YHN to become more responsive to the needs of its clients and tenants, and meet the challenges of the future, YHN needs better knowledge, understanding and control of VFM and be able to react quickly to VFM findings. YHN needs to:    

Have good information and reporting systems on recognised performance indicators that will describe our performance; Be able to compare its performance to other housing organisations; Communicate to tenants and clients an honest assessment of YHN’s VFM performance and use this to set improvement actions for the next year; and Strengthen the Board’s practical influence on value for money in the organisation.

The key priorities of the strategy We will:1. Understand our services and our customers to maximise efficiency and effectiveness 2. Help our partners understand their assets and invest sustainably to maximise future development potential.

3. Deliver real savings to our running costs and seek new income streams to optimise the fees we charge our clients.

4. Collect evidence of our performance and publish it openly and transparently

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for tenants and stakeholders.

Delivering against our priorities

This document sets out our key priorities over the term of the Value for Money Strategy. The strategy is underpinned by an operational action plan which details the activities, responsibilities and timescales which our staff will deliver against.

Responsibility for this Strategy   

Our Chief Executive and Chair have ultimate responsibility for the implementation of this strategy and ensuring that the actions set out in this strategy are carried out; Head of FInance and the Financial Controller have responsibility for the implementation and monitoring of the action plan; Heads of Service and all Managers are responsible for ensuring that this strategy is implemented and maintained within their own services and teams.

They will ensure that all staff are fully informed about their responsibilities and receive the right training and support in carrying them out; and

All staff have a responsibility to ensure that their actions work to deliver value for money for YHN.

Monitoring and review This strategy will be reviewed in 2018 in line with the NCC’s budget planning process. The action plan will be reviewed and updated more frequently to ensure we are on target and that we can respond as new issues arise.

Strategy owner Strategy approval Effective date Review date

Head of Finance Approved by Board May 2015 June 2015 March 2018

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Customer Analysis Make use of information discovery tools on our customers segments and spot demand trends to direct resources more effectively.

Cross-analyse data from different systems to discover

Service Analysis Analyse service performance in greater detail to identify variable service levels across the city.

Business Strategy and Finance teams

Business Strategy and Finance teams

Lead

Following the E+D strategy, we will analyse customer data compared to See Equality and the general Newcastle population to Diversity Strategy identify where we can diversify the market for housing and so open up underrepresented customer groups.

The team will set up systems to produce regular performance information which managers can use to direct resources. We will develop a performance pack for the organisation with an executive summary for Management Team and Board. This pack will include financial information and the main recognised performance indicators for a housing organisation. The pack will give a snapshot of current performance.

We will form a project group drawing expertise from across the business to create information systems that will drive performance.

This team will work alongside frontline teams to define a suite of performance indicators for YHN.

Standard performance indicators Develop a suite of standard performance indicators for YHN to describe its performance to clients and tenants.

Carefully define each metric so that the underlying data is widely understood and the metric is meaningful and useful.

Understand Services

Understand our services and our customers to maximise efficiency and effectiveness.

Next Steps

Methods

Outcome

Value for Money – Action Plan

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September 2015

June 2015

April 2015

Date

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Help our partners understand their assets and invest sustainably to maximise future development potential.

Understand Assets

We will define how sustainability scores and NPV are combined into an overall score used to prioritise developments

Stock-wide NPV We will refine the annual stock-wide Net Present Value (NPV) process to increase accuracy. We will include more non-financial measures to improve our assessment of how sustainable a property is.

Why? By understanding our services better we can spot issues faster and by analysing data about our customers we can anticipate their needs. We can compare how our services are delivered across the city, identify spare capacity and spread good working practices.

hidden patterns of behaviour.

We will develop further an NPV calculation based on client-related cashflows (ASB, Arrears) and a future sustainability score. We will combine this with the property cashflow measures into an overall

We will carry out a regular stockwide NPV calculation based on property-related cashflows (rent, R+M, lifecycles). We will analyse the findings in greater depth to identify poorly-performing sections of stock.

We will take action to diversify our customer base and understand why some residents don’t consider YHN as a landlord.

See: Asset Management Strategy

September 2015

March 2015

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Why? By having a clear picture of how our stock is performing, we can develop financially sound plans for dealing managing our assets.

If we assess our investment proposals on a standard framework, we can see if they offer good value for money and test different options to make sure we deliver the project with the best outcomes.

Develop standard templates and assumptions so that appraisals are fast and comparable. Carry out reviews of projects after completion to identify learning points.

Investment appraisals Fully adopt the investment appraisal framework developed during 2014-15.

We will agree the broad strategies for dealing with stock based on NPV/sustainability scores

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We will carry out post project reviews to refine our assumptions and learn lessons for future projects.

We will continue to refine our standard investment appraisal template to speed the assessment of new schemes. We will use the project development process and to drive down any Value for Money gaps. We will document our assumptions and expected outcomes ready for review.

YHN Board will work with colleagues at NCC to define general strategies for investing in properties based on the asset scores.

asset score.

December 2015

On-going

November 2015

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Deliver real savings to our running costs and seek new income streams to optimise the fees we charge our clients.

Reduce Costs

Why? We will continue to make savings by delivering services more efficiently so that remains the partner of choice for its clients.

Finance Team

We continue to look for opportunities for IT solutions to promote more efficient working We will review how new business cases and growths are appraised

See: IT roadmap

See: Income management strategy

Business Strategy and Finance Teams

Finance Teams

We will continue to review housing policies to ensure they make economic sense. Software is allowing staff to take a more proactive approach to arrears collection, contacting the customer earlier and to greater effect.

We will revise the current service review programme so that increased emphasis is placed on cost savings. Service reviews will focus on understanding fully the link between performance and finance using an agreed framework for assessing services.

Service Reviews Continue the programme of service reviews so that YHN services are regularly appraised for Value for Money.

Business case process Review how new business cases and new income opportunities are assessed and monitored to ensure that any financial implications are understood fully. They should be compared on a “contribution to overheads� basis.

We will continue the use of our efficiency log to show savings in the recurring YHN budget. We will devolve responsibility for efficiency targets to directorate level. The efficiency forum will continue to spot money-saving opportunities.

Efficiency Log Continue to record and report efficiencies made through the efficiency log and focus attention towards optimising the fees charged to our clients.

December 2015

Ongoing

Ongoing

April 2015 and onwards

Annual

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Collect evidence of our performance and publish it openly and transparently for tenants and stakeholders.

Be Transparent

Annual updates to tenants Provide an annual update to tenants in an open and accessible format that

Chart performance over time Report on the trend of the chosen performance indicators, and set targets for improvement.

Benchmarking Make use of available benchmarking resources (Housemark, HCA global accounts) and select a suitable benchmark reference group.

Consider developing a closer relationship with these organisations to share best practice.

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We will provide a statement to tenants alongside the annual report that describes our performance throughout the year.

We will use benchmarking data to help set our priorities for the year ahead and we will produce an accessible, report to tenants annually to describe our performance.

We will contact this reference group to understand their operating conditions better and explore opportunities for sharing information/best practice.

We will identify a list of benchmark partners and carry out an initial comparison of YHN performance to this reference group.

Through the YHN Procurement Strategy, we will continue to maximise Value for Money through our suppliers.

and approved to focus on the impact on management fees in short and medium term.

November 2015 – March 2016

September 2015

June 2015

Ongoing

Communications September team, Tenant 2015 Involvement team

Wider Management Team

Business Strategy team

See: Procurement Strategy

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Why? By comparing our performance to others housing organisations and to our own past performance, we can identify where we need to improve and celebrate where we are doing well. Tenants will get a better sense of how YHN is doing.

describes our performance throughout the year. Show trends and performance against targets. Identify risks and areas for improvement.

Board 5 May 2015 Income Management Strategy Report by Director of Tenancy Services For Decision 1.

Background

1.1

The income management strategy is primarily to mitigate against the impact of welfare reform both on our clients income streams (the Council, Byker Community Trust and Leazes Homes) and on the customers which we serve. Since 2011 our operating environment and the way in which we work, particularly in relation to Income Management, has changed considerably.

The income collection target of 98.6% has been exceeded during the 2014/15 financial year and actual performance was 99.5%. This has been achieved through focused rent collection, promoting a payment culture and maximising the use of Discretionary Housing Payment. We would like to improve on this target and have merged the income and financial inclusion strategies to provide further focus and ensure that every opportunity is taken to maximise income within YHN. Our current strategy was produced in 2011 and intended to direct our income management activity for the period from 2011-2015. In drafting the strategy we have taken account of the Council’s Corporate Debt Policy.

This report seeks comment on and approval of priorities and actions for 2015/16.

2

Income Management Strategy In developing the Income Management strategy it is proposed to base activity on four key themes, the focus of each theme being Income Protection.

The overarching themes within the strategy are;    

Theme 1 - Promoting a positive payment culture Theme 2 - Preparing for Universal Credit Theme 3 - Maximising rental income and minimising arrears Theme 4 - Maximising financial Inclusion

The draft strategy and action plan is attached at appendix 1. Once agreed Page 46 of 124

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delivery of the strategy will be monitored through YHN’s service improvement programme with the Head of Income and Tenancy Management as the lead officer.

2.1

Theme 1 - Promoting a positive payment culture The strategy aims to promote a positive payment culture by making it as easy as possible for all customers to pay their rent and/or other charges that are due in a timely manner and where possible in advance of the due date via direct debit. By doing so the aim is to keep arrears to a minimum and reduce the costs associated with processing payments.

The key activity areas identified within this priority are:   

A workforce that understands the role of income management and can confidently promote payment methods and direct customers to make payments when due.

Ensuring that customers clearly understand the importance of prioritising rent and paying on time.

Providing a range of accessible and effective payment methods with a particular focus on promoting and developing our digital provision.

Across YHN we will need to communicate the message that rent is everybody’s business. Everyone who works for us will understand that we all have a role to play in helping to maximise our income collection in order to ensure that we can continue to deliver valuable services and invest in improving stock and the environment.

All front line staff (including those who deal with telephone contacts only), regardless of job function, will require at least contextual knowledge of the new welfare system. Our staff will need to understand the role of our income management teams and will be able to confidently promote and advise on all the payment methods we offer to ensure that customers are aware of all the different options that are available to them. Any interactions with customers, irrespective of original reason, should be viewed as an opportunity to prompt a payment where one is due.

Likewise for our customers, we need to ensure that they not only understand their contractual obligations but also the link between income collected and our on-going ability to deliver a high quality service. We will need to be clear from the outset regarding contractual obligations and the consequences that can result from non-payment.

Of course to ensure a payment culture we will also need to continue to make it as easy as possible for people to pay and do this by providing a wide range of rent payment options.

2.2

Theme 2 - Preparing for Universal Credit The most fundamental change to the welfare system which has the greatest potential to negatively impact upon the Housing Revenue Account is the introduction of Universal Credit.

The key activity areas identified within this priority are: 

Ensuring that Universal Credit claims are processed promptly to Page 47 of 124

   

avoid build-up of arrears Working in partnership with the Department for Work and Pensions (DWP) to provide support to customers affected by Universal Credit Providing practical support to help customers to enable them to complete and manage their Universal Credit applications Keeping staff up to date with Welfare Benefit developments Keeping customers up to date with Welfare Benefit changes

When identifying activities within this priority we have been mindful of the work already underway as part of the Universal Credit implementation project and associated action plan. YHN Board is receiving separate regular updates on that project.

Our focus, within this priority, is about ensuring that we are prepared for the implementation of Universal Credit by providing appropriate support to both customers and staff. We will also need to ensure that our existing processes are compatible with the implementation of the new welfare reform system.

2.3

Theme 3 - Maximising rental income and minimising arrears We are committed to managing income collection in a socially responsible way. We do this through a proactive and preventative approach, trying to instil a payment culture to prevent the accumulation of arrears and ultimately eviction. However, we recognise there are still improvements that can be made to our day to day internal income management and collection processes which will contribute towards maximising income and minimising arrears.

The key activity areas identified within this priority are:     

Improved benchmarking on our performance Increase the level of rent paid on time or in advance Promote direct debit as the preferred payment method Effective processes, policies and systems in place to support the collection of arrears Improving intelligence about our customers

Within this priority we will be evaluating the effectiveness and impact of the many improvements we have recently implemented including RentSense, Call2Collect and Welfare Reform Tenancy Services review.

Another key focus will be increasing the number of Direct Debit payments.

Direct Debit is an effective collection method which guarantees customers will pay and pay on time therefore minimising the risk of arrears. It is also the most cost effective method of payment in terms of resource spent on processing payments.

2.4

Theme 4 - Maximising financial inclusion In previous years we have produced a separate financial inclusion strategy however we have now taken the opportunity to combine our approach to both income management and financial inclusion together. The rationale for this is that the actions we take to maximise financial inclusion, particularly in Page 48 of 124

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relation to banking, budgeting, advice and support, will increasingly impact upon our ability to maximise income collection.

The key activity areas identified within this priority are:        

Supporting customers to access affordable credit Supporting customers to combat fuel poverty Maximising tenant income Raising the profile of the risks associated with illegal money lending (loan sharks) Improving customer access to appropriate banking products Providing practical support to enable customers to sustain their tenancies Supporting Newcastle City Council’s financial inclusion strategy Improving take up of home contents insurance

In the current climate, there are many compelling business reasons why we should continue with our financial inclusion programme.

Firstly the monthly payment of universal credit into a bank account has been designed to mimic the paid work experience. It assumes that claimants will have a suitable bank account by the time they make a claim and further assumes that claimants will be able to budget their finances accordingly. We will need to continue to work in partnership to help support our customers to access banking products and take early interventions at pre-tenancy stage to help ensure that customers appropriate bank accounts.

A large proportion of customers are struggling financially, with many worse off now than they were compared to two years ago. Coping strategies can include cutting back on food, heat and electricity, falling into debt, depleting savings and selling belongings. Many also borrow money from family and friends and illegal and legal lenders and food banks are playing an ever increasing role in meeting emergency needs. We must continue with a range of initiatives to support our customers in order to avoid financial distress. Failure to do so will undoubtedly impact upon our ability to collect rent from those affected.

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Business Implications

3.1

Purpose and objectives Collecting money we are owed will enable us to meet our strategic objectives of;   

3.2

Make the money deliver Work together to create a brighter future.

Create homes and neighbourhoods we can all be proud of

Value for money and efficiencies: We are seeking to ensure value for money by promoting payment methods that have the lowest transaction charges. In addition we have implemented IT systems that allow us to target our staffing resources where they are Page 49 of 124

most needed.

3.3

Financial Implications YHN Board previously agreed to establish a reserve specifically for welfare reform related activity. This reserve is now managed by the council and we have received approval for an initial draw down of funds in order to assist in the delivery of the strategy.

3.4

Impact on services / performance YHN has challenging targets for this financial year in relation to income collection. Delivery of the income management strategy will support customers to be able to prioritise and pay their rent by the due dates.

Performance against these targets is monitored by Board and our clients.

3.5

Outcome for tenants/leaseholders In a climate whereby many customers have competing debts, we aim to promote a rent payment culture to ensure that customers understand the importance of prioritising their rent and paying it on time. There will also be an increased expectation that customers pay by direct debit unless there are exceptional circumstances that prevent this.

Though we will be firm when faced with non-payment, we remain committed to providing a wide range of support measures for those customers that require additional support to enable them to meet their contractual obligations.

3.6

Risk (reputation and relationship) YHN and the City Council have developed a reputation for low evictions and reduced homelessness. The introduction of Universal Credit presents a risk of increased rent arrears which could ultimately lead to eviction. This may affect our relationship with statutory and voluntary sector partners. UC does present a unique opportunity to build positive relationships with the DWP and we hope by working jointly with the council we can prevent evictions and sustain YHN tenancies. The income management strategy seeks to prevent arrears accruing thus minimising arrears. Failure to achieve our income collection targets will adversely affect our standing as a highly performing organisation.

3.7

Environmental There are no direct environmental impacts following the introduction of the income management strategy or Universal Credit.

3.8

Legal The rent recovery process is covered by legislation that social housing providers must adhere to if we are to seek a possession order for a property. The tenancy agreement is a legally binding contract between customers and the landlord, any amendments to those agreements will be subject to consultation with legal services Page 50 of 124

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3.9

Equality and Diversity and Community Cohesion The introduction of Universal Credit may increase tenancy turnover and homelessness which may impact on community cohesion and sustainability of estates. We already know that black African and LGB tenants are over represented in the rent arrears recovery procedures. As part of the Equality and Diversity strategy action plan we will be investigating the reasons for this and implementing actions to address those issues.

An equality impact assessment has been carried out on the income management strategy and there are no adverse impacts for any of the protected groups under the Equality Act.

3.10

Stakeholder Involvement/consultation: We have been working with the council and other partners as part of the welfare reform strategy board. We have developed a communication plan as part of our UC implementation project that encompasses internal and external stakeholders.

4

Conclusion and recommendations

4.1

Maximising rental income is essential for all of YHN’s clients, poor collection rates could lead by cuts in service or reductions in stock investment. In order for YHN to meet its contractual obligations and support customers to pay their rent and avoid arrears it’s important to have a clear strategic approach. The draft strategy seeks to achieve a balance between supporting and enabling customers to pay and raising the importance of rent collection across the whole of YHN.

4.2

Board is recommended to 1. Approve the Income Management Strategy subject to any amendments at Board

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Implementation

5.1

YHN Programme Board will monitor implementation of the Income Management Strategy Universal Credit reports will be brought back to Board on a quarterly basis during 2015/16.

Background Papers Universal Credit report to YHN Board February 2015

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Neil Scott, by telephone on 0191 278 8711 or email neil.scott@yhn.org.uk

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YHN Income Management Strategy 2015/16

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Version control table

Version number Date current version published: Author:

Contact officers:

Lisa Ainscough- Business Strategy Team Lisa.ainscough@yhn.org.uk

Allison Allison- Head of Income and Tenancy Services Maureen Grainger- Income Manager Suzanne Halliwell- Advice and Support Services Manager

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Contents 1.

1.1 1.2 1.3

2.

2.1 2.2

4-5

Introduction Scope of strategy Purpose of the strategy How does the income management strategy support our business strategy?

6-7

Background Why is income management important?

The challenges we face

3.

3.

Looking back- what have we achieved so far?

3.

4.

Looking forward-where do we want to be?

4.1

Our vision for the Income Management Service

5.

Income Management Priorities for 2015/16

5.1 5.2 5.3 5.4

4 4 5

Priority 1- Promoting a positive payment culture Priority 2- Preparing for Universal Credit Priority 3- Maximising rental income and minimising arrears Priority 4- Maximising financial inclusion

6 6 4.

5.

4.

5.

6.

7.

8.

9.

8 8 8 8-13 9 11 12 12

6.

Resourcing the strategy

13

7.

Monitoring the strategy

13

Appendix A- The value and collection of income across YHN

14-16

Appendix B- Income Management action plan 2015-16

17-27

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1. Introduction Income management is a fundamental business area for YHN. We manage a large number of properties on behalf of three main clients, Newcastle City Council, Leazes Homes and Byker Community Trust. As part of the management agreements that we have in place with each of these organisations, we are responsible for the collection of payments owed by tenants and leaseholders for property related charges including rent and service charges.

Efficient income collection ensures that we can continue to deliver excellent housing services, develop and maintain housing stock on behalf of our clients and protect and enhance the overall financial viability of our organisation.

In 2012 the Government implemented a radical programme of Welfare Reform resulting in substantial changes to the benefits system. One of the key changes is the introduction of Universal Credit, which replaces a number of separate benefits including housing benefit, and is paid directly to claimants monthly in arrears. Designed to replicate the experience of receiving a monthly salary, this is likely to have a significant impact as customers become responsible for using their Universal Credit to pay their rent themselves. This could pose significant challenges for those that have never had to pay rent directly to their housing provider before. If we fail to prepare and respond appropriately to these changes then this could pose a real threat to our clients’ income streams and the income levels of many of our customers.

This strategy has been developed primarily to help mitigate against the impact of welfare reforms on our clients’ income streams and on our customers who we serve. It also sets out our continued approach towards helping those that need financial support and who are in arrears.

The delivery and success of this strategy will be, to an extent, affected by external factors.

We recognise successful partnership working, particularly in supporting tenants through these reforms, will play an integral role in the success of our objectives.

1.1 Scope of strategy This income management strategy covers the period 2015/16 to reflect the current management agreement with Newcastle City Council. It sets out our immediate priorities over this time-frame and the actions we will take to ensure we protect income in the current climate. The strategy outlines how we will continue to manage and collect payment for services provided to the following properties:    

Housing Revenue Account (HRA) (owned by NCC and managed by YHN).

YHN Leazes Homes Byker Community Trust

The strategy is supported by a number of accompanying policies and procedures, which describe in more detail the operational arrangements.

1.2 Purpose of the strategy The YHN Income Management Strategy sets out how we will maximise the income collected within the current climate of welfare reform. The strategy does not document all income management activity which is taking place across the organisation. It is the purpose of this document to outline the areas of income management that have been prioritised as requiring

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improvement or development. It should be noted that there are several other strands of income related activity already taking place across the organisation which have been taken into account when producing this action plan to ensure we avoid duplication.

1.3 How does the income management strategy support our business strategy?

Collecting the money we are owed as efficiently as possible will enable us to meet our organisational strategic objectives.

Our statement of purpose is to: ‘Enable positive living for people in our homes and neighbourhoods’ This reflects that we are committed to improving council homes and the city, and supporting customers when they need it, but that we recognise our services must enable customers and avoid the unintended consequence of heightening their dependence on us.

We have three strategic objectives which drive all of the work we do:

Under these three strategic objectives we have a number of top strategic targets. This strategy is intended to contribute towards the following: 

Collect 99.49% of rent from current and former tenants as a % of rent owed by 31/03/2016



The current tenant arrears as a percentage of the annual rent debit not to exceed 2.34% during 2015-16

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2. Background 2.1 Why is income management important?

We are operating in an increasingly challenging financial environment and so maximising our income collection is more important than ever before. We currently collect income in the form of property related charges on behalf of three key clients, Newcastle City Council, Leazes Homes and Byker Community Trust. In exchange for providing this service we receive a management fee.

The collection of money owed is important because it funds the continued delivery of core housing services and additional services, for example support and care, it also enables the continued investment in the properties we own and manage.

Impact of non-payment on YHN If a customer does not pay as required and on time it has a negative impact on our ability to deliver excellent services as it increases cost, both monetary and in terms of staff time, as the collection of the debt must be pursued.

Dealing with debts takes resources away from services and prevents staff from carrying out other tasks. This affects the level of service that our customers receive. If we do not collect money owed in a timely manner we could see a financial cost to the organisation which customers ultimately pay for through higher charges or reduced services.

2.2 The challenges we face Implementation of universal credit and welfare reform The Welfare Reform Act received Royal Assent on 8th March 2012 and paved the way for the biggest shake up in welfare for over 60 years resulting in fundamental changes to the way in which benefits are allocated and administered. One of the first changes was the introduction of a new size criteria or under-occupation charge in the social rented sector which has already had an impact upon our organisation. A number of under-occupying tenants have had to downsize to a smaller property or are waiting to do so due to no longer being able to afford to live in their original home.

However the biggest change has been the introduction of Universal Credit which will replace six means tested benefits and limits the total amount of benefit a person can claim. Universal

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Credit is underpinned by a number of concepts: Working age benefit •Paid to people both in and out of work and replaces Jobseeker’s Allowance, Housing Benefit, Working Tax Credit , Child Tax Credit, and income related Employment and Support Allowance and Income Support.

Paid monthly in arrears •It is hoped that by paying UC monthly this will help to mimic the experience of receving a monthly wage Digital by design •Where possible all claims should be made online, getting claimants used to undertaking job searches and completing applications online Promoting personal responsibility •Universal Credit places the onus on the individual claimant to pay their debts directly themselves e.g rents.

Responsive • As people on low incomes move in and out of employment, Universal Credit will be adjusted but not cancelled, giving people more incentive to work for any period of time that work is available

We are taking intensive action to proactively support our tenants and to prepare ourselves for the impact of Universal Credit and reductions to people’s benefit, further detail on how we will do this is provided in section 4.

Economic climate Changes in the global economy and the subsequent recession have resulted in on-going pressure on our organisation to deliver value for money services. We are increasingly required to provide more for less and come up with innovative cost effective ways of doing things and this has been one of the key drivers for this strategy.

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3. Looking back- what have we achieved so far? 

Introduced a specialist income recovery service to enable us to provide a more dedicated and focused service to our customers.



Provided all income collection staff with negotiation training to improve the way in which they interact with customers about rent payment.



Introduced a pre-tenancy assessment to ensure all new tenants can afford their housing costs before committing to a tenancy.



Introduced Rent Sense, our new rent arrears decision engine which analyses the historical data on a tenant’s account in order to prioritise cases and enable our staff to better identify which cases require further immediate action. This allows us to focus our staff resources.



Introduced Call2collect, an automated dialling system which contacts tenants in line with our rent escalation policy and prompts payment

4. Looking forward-where do we want to be?

Through implementation of this strategy we aim to ensure the financial viability of our organisation by meeting our delivery plan expectations in relation to rental income collection.

We aim to promote the rent payment culture amongst all of our customers to ensure that they understand the importance of prioritising their rent and paying it on time and clearly understand the consequences of not doing so, not only on themselves but also the impact that non- payment could have on our on-going ability to provide services. Equally all of our staff, irrespective of which service they work in, will be committed and enabled to support the organisation to collect income that is owed.

Recognising the fact that direct debit is the most cost effective and often easiest method of payment, we want direct debit to be the payment method of choice for our customers.

4.1 Our vision for our Income Collection service “An efficient and effective Income Management Service which maximises our income and enables us to provide excellent homes and services”

5. Our Income Management Priorities for 2015/16 In developing our Income Management Strategy we have identified four key themes, the focus of each theme being Income Protection. Our key priorities within each theme is detailed in the accompanying action plan (Appendix B) The themes identified are illustrated in the diagram below:

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Promoting a positive payment culture

Maximising financial inclusion

Income Protection

Preparing for Universal Credit

Maximising rental income and minimising arrears

5.1 Priority One: Promoting a positive payment culture Our aim is to promote a positive payment culture by making it as easy as possible for all customers to pay their rent and/or other charges owed to the organisation in a timely manner and where possible in advance of the due date via direct debit.

We need to ensure that all of our customers clearly understand their obligations but also the link between income collected and our on-going ability to deliver a high quality service.

A large proportion of our customers have been in full receipt of housing benefit and consequently alienated from a rent payment culture for a number of years. Some customers on full housing benefit do not even consider that they pay rent. We know that general awareness of the benefit changes has gathered pace amongst our customers but it is not yet clear to what extent customers know, understand and accept that their contractual rent due will be paid as part of their Universal Credit for onward transaction to YHN. For these customers we will need to provide timely information, advice and often direct assistance to enable them to cope with this cultural shift.

For all of our customers, including those who are not in receipt of benefit, we are committed to providing appropriate support where needed however we will also need to be clear yet firm from the outset regarding contractual obligations and the consequences that can result from non-payment. Of course to ensure a payment culture we will also need to continue to

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10

make it as easy as possible for people to pay and do this by providing a wide range of rent payment options.

The new payment culture will place an imperative on us to make sure that rent is everybody’s business. It is essential that everyone who works for us understands that we all have a role to play in helping to maximise our income in order to ensure that we can continue to deliver valuable services.

All front line staff (including those who deal with telephone contacts only), regardless of job function, will require at least contextual knowledge of the new welfare system. We will also need to ensure that all of our staff clearly understand the role of our newly established income management teams and can confidently promote and advise on all the payment methods we offer to ensure that customers are fully aware of all the different options that are available to them. Any interactions with customers, irrespective of original reason, should be viewed as an opportunity to prompt payment where one is due.

Communicating and promoting this enormous shift in payment culture will require an ongoing campaign approach using a variety of appropriate methods tailored to the individual needs of the customer.

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5.2 Priority Two: Preparing for Universal Credit The most fundamental change to the welfare system and that which has the greatest potential to negatively impact upon our income streams is the introduction of Universal Credit. Under the new system, the housing element which replaces housing benefit will be paid direct to the claimant who will be responsible for paying the landlord. We will need to support our customers, using a range of methods and by changing some of the ways in which we work. By doing so we hope to make the transition as smooth as possible to ensure that payments are made when due.

We will also need to make changes to some of our policies, processes and our IT systems to ensure they are fit for purpose going forward. Initiatives to facilitate this include the introduction of tenancies that start of any day of the week as Universal Credit claims will be paid from the date of the claim and continuing to make more effective use of our customer data. Failure to do so will result in escalating arrears, reduced revenue and ultimately affect our ongoing ability to deliver services.

The first roll out of Universal Credit in Newcastle is scheduled to commence in April 2015, this will include all new single claimants that are eligible for Jobseeker’s Allowance. All claimants of the affected benefits are expected to have been transferred over to the new system by 2017. We have already begun to take steps to help ensure that our customers and our organisation are ready for this for example introducing specialist income officers who are able to devote their time solely to income management and supporting customers to meet their contractual obligations.

Like many other social housing providers we have concerns that some of our most vulnerable customers might struggle with the changes and without support would be at serious risk of accruing arrears and in the most severe cases be evicted from their home.

We will proactively seek to identify those customers most at risk of financial harm and work closely with the DWP to instigate managed payments, an alternative payment arrangement which enables the housing element of Universal Credit to be made directly to the landlord.

We will also seek to identify those who need practical support particularly in relation to completing applications online.

Communication with tenants about Universal Credit will need to be more than awareness raising, we will also need to strongly encourage customers to tell us when they make a Universal Credit claim and promote a culture of prioritising rent payment. Messages around Universal Credit will need to be reinforced in every communication, ensuring the message is consistent and increasing the likelihood of the message being received.

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5.3 Priority Three: Maximising rental income and minimising arrears We are committed to managing income collection in a socially responsible way. We do this through a proactive and preventative approach, trying to instil a payment culture to prevent the accumulation of arrears and ultimately eviction. However, we recognise there are still improvements that can be made to our day to day internal income management and collection processes which will contribute towards maximising income and minimising arrears.

In 2014 we made a number of changes to improve the way in which we manage and collect income so over the course of this strategy we will need to evaluate the effectiveness of service improvements already put in place including: 

Call2collect, an automated dialling system which contacts tenants in line with our rent escalation policy and prompts payment.



Rentsense, a rent arrears decision engine which analyses the historical data on a tenant’s account in order to prioritise cases and enable our staff to better identify which cases require further immediate action



Restructuring our housing management teams to enable us to move away from generic tenancy services to more specialist roles including income recovery.

We will also be concentrating on ensuring that we maximise revenue by promoting cost effective methods of collection. Direct Debit is an effective collection method which guarantees customers will pay and pay on time therefore minimising the risk of arrears. It is also the most cost effective method of payment for the organisation in terms of resource spent processing payments. Over the past few years we have campaigned to encourage customers to pay by direct debit and as of January 2015 approximately 5600 customers paid this way. We need to keep working to ensure both staff and customers clearly understand the benefits of direct debit and recognise that we need to take action to continue to increase the number of customers using this payment method.

In order to be able to charge customers for the services we provide we must ensure those services are always available. This means that in relation to the letting of properties, we must continue to work hard to minimise the number of void properties through decreasing relet times. The faster we are able to re-let empty properties the less possible income we lose.

This equally applies to the garages we manage, so going forward we will be exploring new ways of maximising the income we can collect through our garage stock.

5.4 Priority Four- Maximising financial inclusion Financial inclusion is about being able to access appropriate and affordable financial products and services, and having the knowledge, skills and confidence to use them. There is a strong link between being a social housing tenant and experiencing financial exclusion, benefit dependence and personal debt.

In the current climate, there are many compelling business reasons why we should continue to support our customers to develop financial capability and capacity.

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The monthly payment of universal credit into a bank account has been designed to mimic the paid work experience. It assumes that claimants will have a suitable bank account by the time they make a claim and further assumes that claimants will be able to budget their finances accordingly. We will continue to work in partnership to help support our customers to access banking products and take early interventions at pre-tenancy stage to help ensure that customers are suitably banked.

A large proportion of customers are struggling financially with many worse off now than they were compared to two years ago. Coping strategies can include cutting back on food, heat and electricity, falling into debt, depleting savings and selling belongings. Many also borrow money from family and friends and illegal and legal lenders and food banks are playing an ever increasing role in meeting emergency needs. We will continue with a range of initiatives to support our customers in order to avoid financial distress Unfortunately a large number of our customers, particularly older residents, are affected by fuel poverty and continue to struggle to adequately heat and light their homes. To date we have already implemented a number of environmental improvements to housing stock to improve energy efficiency and reduce household bills. Alongside this we will continue to offer advice and practical support to ensure that those customers who are affected have access to the full range of benefits and initiatives that are available.

Measures to help our customers manage their money and to access affordable financial products and services is a fundamental part of tenancy sustainment. Changes to the benefit system, coupled with rising living costs and high unemployment rates means that more customers are experiencing money problems. Helping customers prepare for benefit changes by promoting budgeting and rent payment accounts, as well as money advice and financial capability training continues to be an essential part of our income management strategy.

6. Resourcing the strategy It is estimated that the strategy will require additional resources of up to ÂŁ10,000 to enable implementation of the action plan. It is anticipated that these additional resources will be drawn from an existing fund, administered by Newcastle City Council, which was set up to enable initiatives aimed at mitigating against the impact of welfare reform in Newcastle.

7. Monitoring the strategy Progress against the action plan will be monitored through our annual programme board.

Our Head of Income and Tenancy Services, who has overall responsibility for this strategy, will provide bi-monthly updates to programme board.

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Appendix A The value and collection of income across YHN Money owed is raised by YHN and it is then collected by YHN or NCC. The table below demonstrates who is responsible for paying for each income stream and how income is collected across the organisation and highlights the value of each income stream.

Income stream

Value of stream per year

Responsible for payment

Responsible for recovering arrears whilst still a customer of YHN

Responsible for collecting former tenant and leasehold arrears

ÂŁ Rents (residential) Service charges included in the rent account Rents (non residential)

Tenants, 105,706,044 Housing Benefit (HB) Tenants, HB, 15,509,908 Supporting People 978,754 Tenants

Income and Tenancy Management Income and Tenancy Management

Sundry Debt Recovery Team

Income and Tenancy Management Sundry Debt Recovery Team NCC (Exchequer Services)

Sundry Debt Recovery Team Sundry Debt Recovery Team

Rechargeable works

4,425 Tenants

Recoverable repairs

TBC Tenants

Other (e.g. salary sacrifice, bike to work, communal area heating)

YHN Staff, TBC local businesses

NCC (Exchequer Services)

Furniture invoice

TBC Tenants

NCC (Exchequer Services)

Community Care Alarm Service (CCAS) invoices

Tenants, Leaseholders TBC external customers

NCC (Exchequer Services)

Service charges invoices

413,697 Leaseholders

Major works invoices

173,969 Leaseholders

Ground rent invoices

15,349 Leaseholders

Major works loan accounts Heating only accounts Total

51,102 Leaseholders 249,451

Leaseholders freeholders

Sundry Debt Recovery Team

Sundry Debt Recovery Team Sundry Debt Recovery Team Sundry Debt Recovery Team Sundry Debt Recovery Team Sundry Debt Recovery Team

Sundry Debt Recovery Team

TBC

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Table 2 below shows the overall arrears position at the beginning of 2015 for: 

Current Tenant Arrears – rent arrears on current residential tenancies (HRA)



Current Tenant Sundry Arrears – housing benefit overpayments and court costs.



Former Tenant Arrears – rent and sundry arrears owed by former tenants.

Table 2 End of Year

Week 39

2013/14

2014/15

£

4.1.15

Year to date Movement £

£ Current Tenant Rent Arrears – (excluding Byker Community Trust and Leazes Homes)

2,063,684

2,510,904

447,220

Current Tenant Sundry Arrears

501,642

501,555

-87

Former Tenant Rent and linked sundry arrears

3,891,339

4,201,214

309,875

Total Arrears

6,456,665

7,213,673

757,008

Leasehold Service Charge Invoices The table below shows the balance outstanding as at 31.12.14 for invoices raised in the previous three years and performance against target

Table 3 Year Invoices Raised

Balance Outstanding at 31.12.14 2014/15 £

Percentage Collected of Invoices Raised

Annual Collection Target

2014/2015

9509

97.8%

98.0%

2013/2014

2,985

99.30%

98.0%

2012/2013

2,386

99.49%

97.5%

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Major Works Invoices Leaseholders are invoiced for major works that have been carried out on their property.

Table 4 below shows the balance outstanding, the percentage collected of invoices raised during each of the last 3 years and the annual collection target.

Table 4 Year Invoices Raised

Balance Outstanding at 31.12.14 2014/15 ÂŁ

% Collected of invoices raised

Annual Collection Target %

2014/2015

63,713

71.55%

90%

2013/2014

16,564

90.48%

90%

2012/2013

17,768

94.27%

90%

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Income Management action plan 2015-16

All payment methods

Online accounts/statements

The advantages of advance payments.







 Why we all have a role to play

The roles and responsibilities of those involved in income management



Delivering an organisational team brief, supplemented by regular communication through the year, to cascade the message that rent is everybody’s business and to help all staff better understand why we need to do all we can to ensure that we maximise rental income. The briefing will address and raise awareness about the following:

1.1

How income is managed across the organisation

A workforce that understands the role of income management and can confidently promote payment methods and direct customers to make payments when due by:

1



Key Activities

Ref

Income Service/Business Strategy Team

Service

Daniel McGuiness/Maureen Grainger

Lead Responsibility

Income Management Strategy Priority 1- Promoting a positive payment culture

10

May 2015

Start date

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May 2015

Completion date

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Provide training and/or guidance to enable staff to use any interaction as an opportunity to review rent account and refer to the income management team as appropriate.

Reduce the build-up of arrears at the start of tenancy by ensuring that all housing benefit claims for new tenants are completed by housing options staff at sign up stage.

Ensure that customers understand the importance of prioritising rent and paying on time by:

Developing and implement an ongoing programme of Rent 1st communications promoting the prompt payment of rent and re-enforcing that rent payment needs to be our customers 1st financial priority. Will include regular re-enforcing of contractual obligations and consequences of failing to adhere to them.

Recruiting a group of involved customers for ‘tenant to tenant’ communication that can assist YHN with promoting a payment culture, including promotion of direct debit, and offer insight and suggestions for future initiatives.

1.4

2

2.1

2.2

Developing a bi-monthly bulletin/news rent alert to keep all staff up to date with welfare reform developments. Include information relating to current arrear levels and other income management activity.

1.3

1.2

Income Service/Business Strategy Team

Income Service/Business Strategy Team

Housing Options

Income Service

Income Service

Heather Horan

Maureen Grainger/Daniel McGuiness

John Urwin

Maureen Grainger/Donna Gallagher

Donna Gallagher/Maureen Grainger

July 2015

April 2015

April 2015

June 2015

April 2015

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Sept 2015

March 2016

On-going

Sept 2015

March 2016

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Income Service

Income Service/Business Strategy Team

Work in partnership with Newcastle City Council to seek opportunities to improve our current online payment provision

Identifying customers who are not active users of online rent accounts and carry out targeted promotion, with offer of practical support, to increase awareness and number of active users.

3.2

3.3

Provide a range of accessible and effective payment methods with a particular focus on promoting and developing our digital provision by:

3

Regularly monitoring advances in technology to ensure that we continue to offer customers a wide range of up to date payment methods

Housing Options

Work with the fairer housing unit to review current lettings policy and include expectation that all transferring tenants have a clear rent account and a suitable bank account to facilitate payment by direct debit.

2.4

3.1

Housing Options

Ensure that at as part of the sign up process, all customers are strongly advised about their contractual obligations to pay rent and that a direct debit is set up to facilitate this (unless there are exceptional circumstances that prevent this)

2.3

10

Maureen Grainger

Maureen Grainger

Maureen Grainger

Michael Morris

Michael Morris

June 2015

April 2015

April 2015

April 2015

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August 2015

March 2016

April 2016

March 2016

On-going

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Key Activities

Ensure that Universal Credit claims are processed promptly to avoid build-up of arrears by:

Review tenancy agreement to enable the introduction of any day tenancy start dates to align with the administration of Universal Credit

Trial the implementation of a two week check with new UC claimants to check progress of claim and determine if any further support is required

Provide practical support to help customers to enable them to complete and manage their universal credit applications by:

Undertaking a pilot involving at least 40 digitally excluded tenants to equip and enable them through dedicated support and training to be able to complete their Universal Credit application online.

Recruit 20 digital community champions with a remit to provide support to other customers to enable them to complete universal credit application and enable them to pay online.

Ref

4.

4.1

4.2

5

5.1

5.2

Priority 2- Preparing for Universal Credit

Business Strategy Team

Business Strategy Team

Income Service

Tenancy and Estate Management

Service

Heather Horan

Heather Horan

Maureen Grainger

Allison Allison

Lead Responsibility

July 2015

April 2015

May 2015

April 2015

Start date

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Sept 2015

June 2015

December 2015

March 2016

Completion date

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Keep staff up to date with Welfare Benefit developments by:

6

Heather Horan/Stuart Clarke

Business Strategy Team/Employability

Keep customers up to date with Welfare Benefit changes by:

Use of database of customer email addresses to send targeted communications to those who we know/suspect will be affected by the changes. To include details on how to access internal/external support.

7.

7.1

Daniel McGuinness/Donna Gallagher

Income Service

Business Strategy Team

Donna Gallagher

Income Service

Regularly update our dedicated welfare reform site, including links to news articles and implementation timeline as it becomes clear Develop and regularly update a library of useful welfare reform information videos and upload onto the Sharepoint site.

6.1

6.2

Donna Gallagher

Income Service

Donna Gallagher

Heather Horan/Donna Gallagher

Business Strategy Team/ Income Service

Provide all frontline staff with basic Universal Credit training/guidance possibly as part of a wider benefits e-learning package.

5.4

In consultation with customers, produce an effective toolkit to help support tenants to complete a Universal Credit form and make this available in our offices and on our website.

Explore different opportunities to provide universal credit application sessions with pc/internet access to support those tenants who need additional practical support to complete and manage a claim.

5.3

10

April 2015

April 2015

April 2015

June 2015

June 2015

April 2015

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March 2016

March 2016

March 2016

December 2015

October 2015

June 2015

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Income Service/Business Strategy Team

Consider implementation of social media ‘talk to us’ days on twitter and Facebook or a live chat option via our website as means of answering basic questions, providing and signposting information and promoting understanding.

Make use of, and make available via the YHN website, the wide range of free national information and advice tools. Including the Universal Credit toolkit developed by the Money Advice Service.

7.3

7.4

Key Activities

Improved benchmarking on our performance by:

Using Housemark we will routinely benchmark our rent collection performance against other housing providers. We will report our performance against the HouseMark rent collection indicators to both our management team and wider management team.

Ref

8

8.1

Business Strategy Team

Service

Priority 3- Maximising rental income and minimising arrears

Income Service

Income Service/Business Strategy Team

Re-launch and possibly rebrand our welfare reform awareness campaign. Consider the possibility of joining an existing campaign in order to easily access promotional materials including flyers, stickers, posters etc.

7.2

Richard Burns

Lead Responsibility

Donna Gallagher

Donna Gallagher/Daniel McGuinness

Daniel McGuinness/ Donna Gallagher

April 2015

Start date

April 2015

July 2015

April 2015

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On-going

Completion date

March 2016

July 2015

August 2015

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Business Strategy Team

Income Service

Business Strategy Team

Income Service

Promote direct debit as the preferred payment method by:

Audit the impact of the existing staff and customer direct debit incentive schemes.

Benchmark with other organisations to understand impact of ‘recommend a friend’ and other direct debit incentive schemes with view to implementing if successful.

Develop and implement a new direct debit promotion email and SMS based campaign.

Ensure that all participants in customer involvement led activities are encouraged to sign up to direct debit and made aware about our new YHN pay app by providing guidance and information on how to do this Effective processes, policies and systems in place to support the collection of arrears:

Evaluate the impact of Call2Collect automated telephone dialling system and report findings and any recommendations to YHN Management Team

10

10.1

10.2

10.3

10.4

11.1

11

Income Service

Explore options that would enable all new tenants to make their first payment in advance at sign up.

9.1

Income Service

Increase the level of rent paid on time or in advance by:

9

10

Allison Allison

Heather Horan

Maureen Grainger

Richard Burns

Maureen Grainger/Heather Horan

Maureen Grainger

April 2015

April 2015

July 2015

April 2015

May 2015

October 2015

23 | P a g e

October 2015

March 2016

September 2015

June 2015

July 2015

April 2016

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Evaluate the impact of RentSense software and report findings and any recommendations to YHN Management Team

Improving intelligence about our customers:

Conduct and complete appraisal of the possible benefits of obtaining customer credit information through Experian

Maximise the revenue we receive from garage rents by:

Exploring possibilities of actively promoting other garage uses to increase take up of long standing empty garages including ‘make your own money’ scheme

Targeted promotion of direct debit to all garage tenants.

11.2

12

12.1

13

13.1

13.2

Income Service

Housing Options

Business Strategy Team

Income Service

Maureen Grainger

Joanne Raffo

Richard Burns

Allison Allison

June 2015

June 2015

April 2015

April 2015

24 | P a g e

September 2015

September 2015

June 2015

August 2015

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Support customers to combat fuel poverty by:

Developing and implementing a telephony based Warm Home Discount Scheme take up campaign targeted at those who may be eligible to receive money off their energy people including people with disabilities and parents with children under 5

Maximising tenant income by:

Carrying out a targeted communication campaign promoting take up of Universal Credit aimed at working under 25’s who are better off under UC

15

15.1

16

16.1

Advice and Support

Advice and Support

Suzanne Halliwell

Advice and Support

Raise awareness about credit unions amongst school pupils by continuing to financially contribute towards the credit union volunteer schemes in schools.

Introduce tenner take up campaign for YHN customers who join Moneywise through new Walker collection point.

14.2

14.3

Suzanne Halliwell

Advice and Support

Work with Moneywise to explore new opportunities to increase YHN customer access and exposure to the services that they provide including promotion on rent statements and website.

14.1

Suzanne Halliwell

Suzanne Halliwell

Suzanne Halliwell

Advice and Support

Support customers to access affordable credit by:

Lead Responsibility

14

Service

Key Activities

Ref

Priority 4- Maximising Financial Inclusion

10

TBC*

July 2015

September 2015

April 2015

April 2015

Start date

25 | P a g e

TBC*

Jan 2016

March 2016

March 2016

March 2016

Completion date

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Improve customer access to appropriate banking products by:

Advice and Support As part of the pre-tenancy risk assessment process, develop a process to enable our ASW staff to provide direct support to customers to open up a bank account prior to an offer of tenancy being made.

Exploring alternative partnerships with local banking organisations to improve customer access to appropriate bank accounts.

Provide practical support to enable customers to sustain their tenancies by:

Secure external funding to enable us to continue to provide household items, such as white goods/carpets to those tenants identified as being in immediate financial need and at a risk of being unable to sustain tenancy

Run two financial capability sessions as part of the United for Employment courses.

18

18.1

18.2

19

19.1

19.2

Advice and Support

Advice and Support/Business Strategy

Income Service

Working in partnership with the Illegal Money Lending Team to provide refresher training for frontline staff through area briefings to ensure staff are able to recognise the signs of/ and report illegal money lending.

17.1

Advice and Support

Raise the profile of the risks associated with illegal money lending (loan sharks)by:

17

Suzanne Halliwell

Suzanne Halliwell

Lynsey Dunlop

Suzanne Halliwell/Lynsey Dunlop

Suzanne Halliwell

April 2015

April 2015

April 2015

May 2015

Sept 2015

26 | P a g e

March 2016

March 2016

April 2016

June 2015

December 2015

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Income Service

Income Service

Income Service

Income Service

Continuing to contribute towards the work of the Newcastle Financial Inclusion group through attendance at partnership meetings.

Improve take up of contents insurance by :

Introducing a new field on Northgate to capture information relating to insurance and develop a process to collect this information.

Undertake a review of our existing insurance process to identify additional opportunities for improving take up of insurance amongst new and existing tenants.

Developing a new communications campaign to increase awareness of the benefits of having contents insurance

Undertake consultation with a sheltered scheme to find out what they think of the idea of automatic opt in contents insurance being included in the rent charges.

20.1

21

21.1

21.2

21.3

21.4

Advice and Support

Support Newcastle City Councils financial inclusion strategy by:

20

10

Lynsey Dunlop

Lynsey Dunlop

Lynsey Dunlop

Lynsey Dunlop/Ian Rowell

Suzanne Halliwell

January 2016

July 2015

April 2015

July 2015

April 2015

27 | P a g e

March 2016

September 2015

June 2015

September 2015

On-going

1

Board 24 March 2015 (5.00pm – 7.00pm) Present: O Grant (Chair), J Common, P Dibbs, L Doherty, P Dutton, V Dunn, D Huddart, J McCarty, L Middlemiss, T Moore, J J Reid, N Shukla, L Stephenson, J Stokel-Walker, and M Talbot In Attendance: J Lee S Breslin N Scott D Langhorne J Vinton A Allison M Burn L Forrest G Ellingham I Gallagher L Horsefield S O’Neil A Peel D Gallagher D Creighton L Gray C McMullen A Senior C Patterson 348

- Chief Executive - Assistant Chief Executive and Director of Corporate Services - Director of Tenancy Services - Director of Property Services - Head of Assets and Regeneration - Head of Income and Tenancy Management - Head of Support and Care - Head of Finance - Head of IT - Head of Property Maintenance - Head of Business Strategy - Lead Policy and Business Service Officer - Service Quality Officer - Universal Credit Implementation Manager - Executive Assistant, Chief Executive - Project Manager, Corporate Services - Head of Procurement and Commissioning Team, NCC - Fairer Housing Unit Service Manager, NCC - Democratic Services, NCC

WELCOME The Chair welcomed everyone to the meeting and reminded members to turn off their mobile phones.

349

APOLOGIES FOR ABSENCE Apologies were received from D Down, A Mirza, E Snaith and the Company Secretary, J Davison.

350

DECLARATIONS OF INTERESTS V Dunn declared an interest in Agenda Item 5 – Disaggregation and Decision Making in Future, indicating that she was the Cabinet Portfolio presenting the report to NCC, Cabinet.

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351

CHAIRS ITEMS The Chair advised that there were a couple of items to announce in addition to the two matters relating to Board membership, which had been circulated on the Chair’s report.

The Chair said arrangements had been finalised about the April Away Day, which was to be held in the Mansion House, Jesmond. In terms of the agenda for the Away Day, an item about safeguarding was to be included; however, given the time necessary to discuss this matter thoroughly, it had been decided that it would be better placed as part of a training session. A series of training sessions were to be arranged to ensure that Board members had the knowledge and understanding to carry out their business effectively. She said Board members would be contacted and asked to have a think about the range of training issues they felt would be useful for them. This would be followed up with a discussion at the next scheduled Board meeting.

The Chair explained that as Elaine Snaith, Chair of the Finance and Resources Committee had submitted her apologies, unable to attend this meeting, it was agreed that her report would be deferred until the meeting scheduled on 5 May to enable her to present the report in person.

The Chair advised that a letter had been received from Jim Coulter Byker Community Trust (BCT), drawing attention to a potential conflict of interest in relation to a YHN Board member being a Board member of the BCT. As a result, the YHN member had stood down from attending meetings and advice was sought. It was established that there was a conflict of interest. Therefore, it was agreed that no further appointment should be made to the BCT Board. Members’ views on this matter were to be sought over the next couple of days and unless any adverse comments were received, a formal response would be sent to Jim Coulter confirming YHN’s position.

The Chair explained that it was Judith Common’s last meeting and that she wished to say a few words and present a few gifts from everyone at YHN. She said that she had only worked with Judith over a year but had found her to be a fantastic help and support. She said, more generally Judith had made a huge contribution to YHN over the years and had been valued both by staff and her fellow Board members. Her immense contribution would be hugely missed. She said Judith was moving over to County Durham and therefore hoped that the insight learned here at YHN would help her in that new post. To conclude, she offered her thanks and that of fellow Board members and wished her well. In reply, Judith said she had been involved in Newcastle for many years as an operational Police Officer and had developed a real interest in housing. When she retired from the Police Force, she said she had been fortunate to be appointed as a Board Member of YHN, which was a real privilege. She had seen YHN develop and grow over her term of office but had felt this was the right time to leave, being in her final term of office and as a result of this opportunity. She said she was leaving with tremendous knowledge and insight, which would help her in her new post. She said she was leaving with some sadness having made lots of friends but was relishing the opportunities ahead and was sure there would be some opportunities for collaborative working between Co. Durham and Newcastle. She extended her thanks to all staff at YHN and to her fellow Board members.

The Chair referred the Board’s attention to the paper circulated about the casual

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vacancy and the recruitment process, inviting comments and questions.

A Board member queried the terms of office and process for Tenant Board members.

In response, J Lee indicated that there was a separate process for the Tenant Board members. The intention was to present this recruitment process in May. The Chair asked for volunteers who may be interested in sitting on the interview panel.

P Dibbs indicated that he was interested. The Chair thanked the member and indicated that if anyone else was interested then they were to contact the Company Secretary.

RESOLVED – That the Board:

352

(i)

Recommend to Newcastle City Council the appointment of Paul Scope as Independent Board member to fill the casual vacancy.

(ii)

Agree to the recruitment process as outlined in the report.

(iii)

Notify the Company Secretary of their interest in being involved in the recruitment.

DISAGGREGATION AND DECISION MAKING IN FUTURE Submitted: Report by Chief Executive (previously circulated and a copy attached to official Minutes).

J Lee presented to the report, which provided information about the progress being made to disaggregate the YHN board finance from the Housing Revenue Account (HRA) following the return of strategic HRA Management to Newcastle City Council (NCC).

Board members sought further information about and clarification on what the definition of consultation would be. In response, J Lee explained that this level of detail was still to be discussed thoroughly with NCC and that consultation would differ subject matter to subject matter. Once a consultation plan had been designed then a definition would be shared with the Board. The Chair reminded the Board that some information around consultation was available in the management agreement.

A Board member referred to the governance changes, seeking clarification about the transparency and fit for purpose aspects. In response, J Lee explained that throughout the Asset Management Plan, priorities for investment were clearly set out.

A variety of factors were taken into account when demonstrating sustainability of stock; location being given as an example. He said further conversations were required with NCC, in addition to a review being carried out to determine stock types and whether the stock was fit for purpose. A detailed report would be presented to the Board and to NCC Cabinet, detailing the outcome of these activities, in addition to explaining why stock was not sustainable. He reported on the restructuring of the housing offer; the importance of ensuring the needs and aspiration of communities were sustained and there was investment into social housing estates, pointing out how these may result in some differentiation in offers.

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A Board member referred to the HRA Capital programme, asking for some caveat to be placed on the sentence in the plan about ‘upgrading or replacing stock, which was no longer fit for purpose’ as he considered this did not match tenants’ aspirations e.g. not all tenants wanted 1 bed flats. He also sought clarity on the budget cost centre. In response, J Lee explained that it was not just HRA Capital programme but was the whole Capital financial envelope. A Senior, NCC explained that the language used in this document was the same as in the existing 2015 Plan. There was no suggestion being made that there would be a move away from assessments. There would be continued Council involvement.

A Board member referred to the ‘political demons’ around housing and David Cameron’s plan to increase speed and attractiveness of buying Council housing, commenting upon the need to see some reference to this in the document. In response, the Chair explained that the Board should be mindful of the huge amount of collaborative working between YHN and NCC. If something material happened then it would be discussed, worked out collaboratively and changes made. The Board’s attention was drawn to Appendix 1, with a comment being made that item 4 of HRA Capital programme reference the detail, although it did not provide specific implications. However, a change in Government policy would require reconsideration of matters. This went some way to protect the stock.

The Chair thanked officers from both YHN and NCC for the collaborative working which helped to produce this report.

RESOLVED – That the Board received the report for information and noted the comments expressed.

353

FERGUSON LANE BUNGALOWS Submitted: Report of Director Property Services (previously circulated and a copy attached to official minutes).

D Langhorne presented the report, which provided the Board with an update on progress being made with the above redevelopment project. A site plan was attached at Appendix 1; a visual plan of what the estate would look like when complete was attached at Appendix 2 and the financial assessment of the new scheme was attached at Appendix 3.

A Board member commented upon the loss of rent income due to the tenants’ rehousing taking longer than anticipated. She enquired about the availability of financial incentives to enable tenants to move quicker. She also enquired about the likelihood of the success in receiving the Homes and Community Agency (HCA) grant funding. In response, D Langhorne indicated that there were incentives available; details of which were explained. Officers were working intensely with tenants with priority being given to the 24 tenants who had indicated that they wished to move back to their properties. NCC was in support and prioritising the bid. It was assumed that £840,000 would be achieved based on the first round of allocations.

A Board member expressed his concern about the majority of the properties being replaced by one bedroom, questioning the implications for potential tenants. He also questioned the amount of analysis that had been carried out around affordability. In

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5

response, D Langhorne said that work was underway on a number of housing options and explained that demand was there for this type of property and that older people were not subject to the under occupation charge.

A Board member commented upon how tenants were likely to be seeking to move into properties that would suit them in their retirement. In response, J Lee explained that there was a requirement to have a degree of flexibility in housing options. Many older people required two bedrooms and demand for such properties were great. He reminded the Board about the letting and policy assessments and about how each application had to be considered on individual merits. He also commented upon the likely implications of the bedroom tax.

A Board member expressed concern about accessibility of the site for mobility wheelchairs. She also sought clarity about what was meant by ‘level three compliance’. In response, D Langhorne explained that accessibility in the site had been a challenge but was considered at the design and specification stages, reminding the Board that two bungalows had fully adapted bathrooms. He explained that Sustainable Homes code level three compliance includes a combination of energy performance measures installed into homes, such as double glazing, solar panels, cavity wall insulation and so on.

Clarification was provided in response to queries raised on the financial modelling.

An explanation was given about what was meant by the term ‘adapted’ and ‘adaptable’.

RESOLVED – That the Board:

354

(i)

Received the report.

(ii)

Agreed to recommend to Newcastle City Council that there was a bid made to the HCA for this project.

(iii)

Agreed to receive a further report if the bid to the HCA was unsuccessful and the value for money gap could not be closed.

HOMES AND COMMUNITIES AGENCY - AFFORDABLE HOMES PROGRAMME UPDATE Submitted: Report by Director of Property Services (previously circulated and a copy attached to official minutes).

D Langhorne presented the report, which provided an update on the sites in the above programme and the outcome of bids through capital grant funding, made available to fund affordable housing (outside of London) over a three year programme period 2015-18.

A Board member referred to the HCA projects, stating that he was only aware of one, which was Daisy Hill. He pointed out that the site was bigger than the original footprint of the previous building on the site, which was the Youth Centre. He expressed concerns about the consultation carried out with residents and what support there was

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11

6

for this programme. In response, D Langhorne said that development briefings and plans were developed for each site. In agreeing that there was originally only one building on the site, which was the Youth Centre, he confirmed that housing was not to take up the entire site, only part of it. Full consultation had been carried out, as expected for any new build and would only proceed on approval being granted.

Clarification was provided on the different options that had been considered for the site.

RESOLVED – That the Board:

355

(i)

Receive the report.

(ii)

Approve that a bid for CME was made for projects identified on the attached schedule.

YHN REVIEW VERBAL UPDATE J Lee gave a verbal update on the progress of the YHN review, highlighting the following points:     

TUPE transfer of HR and OD staff was to take place on 30 March.

Applauded staff for their professional approach and understanding throughout the process.

Two areas of work were still outstanding e.g. Contact Centre and Digital Choice; further details would be presented back to the Board in due course.

Work was going well and activities would start to speed up over the coming weeks.

Anticipated that there would be information to discuss progress at the Away Day in May.

The Chair asked the Board to note the information about how things were moving forward in such a positive and active way.

RESOLVED – That the Board received and noted the information.

356

CUSTOMER SERVICE Submitted: Report by Director of Tenancy Services and Director of Corporate Services (previously circulated and a copy attached to official minutes).

N Scott introduced the report, which provided information on YHN’s service users; the way they accessed services and the customer service experience. It invited the Board to adopt an approach, which was intended to keep customer service at the heart of everything YHN did, particularly at a time of such change. The report also provided information on other digital access channels and to the support mechanisms that were complementary to the technological changes.

A Board member enquired as to the current position in relation to the bid for tablets to support digital inclusion for tenants. In response, N Scott advised that the bid was refused but YHN’s aspirations were to continue with the pilot and further discussions around the location was still to be determined.

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A Board member queried if customers’ needs would continue to be met. In response, N Scott advised that YHN would always expect to offer face to face service for customers, reassuring the Board that tenants would still have opportunities to engage with staff direct. There was no intention to reduce the number of customer service outlets.

In welcoming the report, a Board member indicated that she was excited by the Digital

by Choice work being carried out across NCC and YHN on this shared concern and had been pleased to note the fall-back customer engagement position, pointing out that some people would never use the digital access to services. She commented upon the need to align the long term plans and not to think forever about these. In response, N Scott indicated that the anticipated timescales for detailed actions in the Digital by Choice programme to be developed for 2015-16 would be in approximately two to three weeks. Proposed actions for 2016-17 and 2017-18 would be developed over the next six months. Further details on this could be brought to the Board.

A Board member, also in welcoming the report, questioned how YHN gathered and used the softer intelligence it received. In response, N Scott indicated that YHN gathered information throughout the year from its engagement with customers, which then influenced the delivery of services. He also reported upon the formal complaints and service request procedures, which also captured data and used similarly.

A Board member commented upon the information provided around diversity, commenting upon the use of data to justify where YHN was needed in relation to those disabled or those over represented. In response, N Scott indicated that the tenant Broadband report considered by Board at the end of 2014 was a ‘living snap shot’, confirming that the demographics were robust.

A Board member referred to stakeholder involvement and consultation with queries asked around the number of those attending being new customers. As a response could not be provided as the data was not the hand, the Chair asked for an answer to be provided to the Board via email.

The Chair outlined that regular progress updates to the Board on material changes was important. In response, N Scott agreed to discuss with NCC and bring a report to the Board in May. RESOLVED – That the Board: (i)

Agreed the principles described in section 3 of the report.

(ii)

Agreed the activity described in section 4 of the report.

(iii)

Receive a response to the query around stakeholder involvement and consultation via email.

(iv)

Receive regular progress update; the first of such be presented to the next scheduled meeting in May 2015.

(D Huddart left the meeting at 6.15pm)

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8

357

DELIVERY PLAN 2015-16 Submitted: Report by Director of Corporate Services and Assistant Chief Executive (previously circulated and a copy attached to official minutes).

S Breslin introduced the report, which provided information on an annual Delivery Plan for 2015-16 which translated the Business Strategy into actions for the year ahead, setting out some context in terms of the previous year and the focus for the year ahead. The Delivery Plan was made of three main sections:   

The top 20 strategic business targets Service improvement programme; and Service Plans

She referred to Page 63 and advised that following an assessment of performance the repairs and maintenance target was to be set at a proposed value of £90 with projected end of year figure of £91.42. She confirmed that a decision had been made to go back to House Mark to enable benchmarking and to respond to requests from our clients.

A Board member expressed that in order to better understand the targets she would prefer to see the rent arrears collected shown as a percentage also. She also asked about how much control YHN had over the target relating to management of estates.

In response, S Breslin indicated that at the request of Audit Committee the percentage figures had been removed but that she was happy to include in future. She confirmed that the rent collected equated to 99.4%. N Scott advised that the service was provided over HRA property and land, carried out via a range of Service Level Agreements with NCC. Performance from NCC was provided to enable targets on front line services to be set. He reported that there was to be no change to the number of operatives this year and the challenges ahead were all achievable.

A Board member queried the correlation of the figures set for voids and relets against the rent collected. Following a brief explanation, the Chair suggested that a response via an email should be circulated to the Board.

RESOLVED – That the Board:

358

(i)

Approved the draft 2015-16 Delivery Plan

(ii)

Receive via email, clarification around the correlation of the proposed tenancy turnover target against the proposed targets for rent collection and letting empty homes i.e. rent arrears and void rent loss and average re-let time.

EQUALITY AND DIVERSITY STRATEGY ACTION PLAN Submitted: Report by Chief Executive (previously circulated and a copy attached to official minutes).

J Lee and S Breslin jointly introduced the report, which provided the Board with a draft

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Equality and Diversity Strategy and Action Plan for approval or amendment, enabling YHN to continue to meet the statutory duty for public bodies in tackling persistent and long standing issues of disadvantage, and commitment to paying due regard to eliminating unlawful discrimination, harassment or victimisation; advancing equality of opportunity between different groups and fostering good relationships between different groups. Reference was made to the secondary level of the Action Plan and the requirement to include a further level of detail. This detail could be shared with the Board. Reference was also made to some of the key differences from previous approaches. Some targets were designed to create positive outcomes for known issues. To help ensure the links to the Delivery Plan, staff appraisal paperwork was to be changed with a larger section to be on equality and diversity.

A Board member asked for someone to sit down with her and to go through the papers having found it difficult to understand the key outcomes. She queried whether insight gathered from unsuccessful candidates was reviewed. She expressed an interest in performance improvement. In response, S Breslin explained that data was captured and applied in terms of all recruitment activities. Performance was talked about in appraisals in the main to improve service but also to demonstrate commitment.

A Board member referred to the changes resulting from the 2010 Equality Act, which removed some groups from the list e.g. HIV Positive; TU membership; political group membership, commenting upon how many organisations were still including these groups, asking that YHN should also consider recognising them. In response, J Lee indicated that his comments had been noted.

RESOLVED – That the Board approved the Equality and Diversity Strategy and Action Plan and noted the comments outlined.

359

MINUTES OF 10 FEBRUARY 2015 RESOLVED – That the Minutes of the meeting held on 10 February 2015 were approved as a correct record and duly signed by the Chair.

360

ANY OTHER BUSINESS There were no items raised.

361

ITEMS FOR INFORMATION RESOLVED – That the following items be received for information: i) ii) iii) iv) v)

362

Quarter 3 Performance Report Delegated Decisions Petitions Board Forward Plan 5 May Audit Committee Minutes 20 November 2015

EXCLUSION OF PRESS AND PUBLIC RESOLVED – That in accordance with the organisation’s Access to Information

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10

provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.

………………………………………………..

Mrs O Grant Chairman 5 May 2015

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13i Board 5 May 2015 Health and Safety Update Report by Director of Property Services

For Information 1.

Background information

1.1

Board received in November 2014 an updated health and safety report detailing an overview of YHN’s construction related activities and work undertaken to ensure compliance with relevant legislation.

1.2

This revised report incorporates the requirements of the Occupational Health and Safety Advisory Service (OHSAS) 18001, YHN’s health and safety quality management system which is administered by the British Standards Institute (BSI) to ensure legislative compliance and drive continual improvement.

In line with OHSAS 18001 requirements YHN Health and Safety report to Board bi-annually.

YHN Health and Safety Committee meet bi-annually under the Chairmanship of the Director of Property Services as YHN Health and Safety Champion. This Committee now includes two YHN Board Members, Lynn Stephenson and Tony Moore.

The YHN Health and Safety Forum meet quarterly under the Chairmanship of the Health and Safety Manager.

2.

Occupational Health and Safety Advisory Service (OHSAS) 18001

2.1

In August 2013 YHN achieved OHSAS 18001 accreditation, which recognised YHN’s compliance against stringent assessment criteria, plus the organisation’s commitment to continuous challenge and improvement, and the adoption of national best practice.

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2.2

YHN were audited under OHSAS 18001 in November 2014 where the accreditation was retained.

Observations for improvement were made around the following areas:   

Storing coats on the back of chairs No record of formal Fire Warden training for Joy Gordon (OWN CSC) RIDDOR reportable accidents did not indicate if the relevant risk assessment had been reviewed or amended

In accordance with OHSAS 18001 compliance the above observations have been addressed and implemented in to YHN working practices.

2.3

Planned OHSAS 18001 activity: 

External audit scheduled for 15/16 July 2015

3.

Board’s roles and responsibilities

3.1

The Health and Safety Executive (HSE) published a document titled ‘Leading Health and Safety at Work’. This document details the role of Board in managing health and safety, and the responsibilities of Board members.

The document sets out three essential principles:   

3.2

Strong and active leadership from the top Worker involvement Assessment and review

In January 2015 the Head of Property Maintenance and the Health and Safety Manager delivered training to YHN Board to make them fully aware of their and YHN’s legislative requirements under health and safety law.

A further training session is to be arranged in Quarter 1 2015/16 for Board Members who were unable to attend the January training session.

4.

Health and Safety Reporting

4.1

General Health and Safety Monitoring Monitoring of health and safety legislation is an integral part of the health and safety teams function. Areas of higher risk activity are proactively monitored and reported to Board.

The following areas will be reported to Board every six months.

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4.2

Accidents

13i

Accidents to Employees 2014/15 12 10 Q1

8

Q2 Q3

6

Q4 4 2

4.2.1

Slipped, tripped or fall on same level

Sharps

RTA

Physically assaulted by a person

Manual Handling

Injured by animal

Hit by moving, flying, falling object

Hit by moving vehicle

Hit something fixed or stationary

Fall from height

Contact with moving machinery

Contact with electrical discharge

Another kind of accident

0

Annual accident trends for 2014/15 highlight manual handling as the main area of concern.

Investigation works have identified that the majority of manual handling injuries have occurred to NFS staff. Whilst all manual handling training is up to date in this area of the business it has been identified that bespoke training in handling bulky goods / white goods is required as opposed to standard manual handling training with regard to good practice.

4.2.2

Bespoke training has been identified to be delivered by specialist accredited training company in this area for Quarter 1 of 2015/16.

4.2.3

Accidents categorised as RIDDOR (Reporting of injuries, Diseases and Dangerous Occurrences Regulations 2013) include fractures, amputations, loss of sight, crush injuries, burns, scalping, loss of consciousness, closed space injuries and any injuries that result in a loss of seven working days.

RIDDORs reported during 2014/15:   

Quarter 1 = 1 Quarter 2 = 3 Quarter 3 = 3 Page 91 of 124



Quarter 4 = 2

During 2014/15 five of the above RIDDOR’s were related to Manual Handling injuries, and four as a result of Slips / Trips / Falls.

Of the nine RIDDOR reportable six involved NFS staff, two Concierge staff, one involved Housing Management staff.

The above information supports the requirements for bespoke manual handling training in the NFS service.

4.2.4

Significant near misses are reportable under RIDDOR. During 2014/15 there have been no near misses in this category.

There have been four minor near misses which have been investigated and no further action is required.

Accident Trend Analysis

Accident Analysis 35 30 25

2011/12

20

2012/13 2013/14

15

2014/15

10 5

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Slipped, tripped or fall on same level

Sharps

RTA

Physically assaulted by a person

Manual Handling

Injured by animal

Hit something fixed or stationary

Hit by moving, flying, falling object

Hit by moving vehicle

Fall from height

Contact with moving machinery

Contact with electrical discharge

0 Another kind of accident

4.2.5

4.3

Incidents

13i

Incidents to Employees 2014/15 10 8 6 4

4.3.1

Verbal abuse

Racial Discrimination

PRI request only

Physical Violence

Inappropriate Behaviour (over familiar etc)

Q2

Firearm related

0 Animal related (bitten by or present)

Q1

Aggressive, threatening, intimidating behaviour

2

Q3 Q4

Annual incident trends for 2014/15 highlight Aggressive/threatening/ intimidating behaviour as the main area of concern, with verbal abuse as another of concern.

The Health and Safety section continue to be involved in reviewing the policy and procedure for the PRI system. These procedures and policies have been presented to Management Team during 2014/15 and will be implemented during 2015/16 dependent on IT related work central to implementing the policies.

Aggressive / threatening / intimidating behaviour and verbal abuse are areas covered in new e-learning training module YHN Personal Safety which has been piloted and is due for implementation during Quarter 1 2015/16.

The Dealing With Difficult Situations policy has been reviewed and circulated to Wider Management Team for comment. Final revisions are now due to be made on the policy which will be implemented in Quarter 1 2015/16.

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Hoist and Care

Health and Safety Awareness elearning

First Aid at Work (3 day)

Fire Warden

Fire Safety Awareness

Evac Chair

Emergency First Aid at Work (1 day)

Electrical Awareness

Electrical Appliance Testing (PAT)

DSE elearning

Dealing with Difficult Situations

Automated External Defibrilation (AED) New & Ref

4.4

Asbestos Awareness

Verbal abuse

Racial Discrimination

PRI request only

Physical Violence

Inappropriate Behaviour (over familiar etc)

Firearm related

Animal related (bitten by or present)

Aggressive, threatening, intimidating behaviour

4.3.2 Incident Trend Analysis

Incident Analysis

40

30

20

10 2011/12

0 2012/13

2013/14

2014/15

Health and Safety Training

Number of staff trained 2014/15

600

500

400

300

200

100 Q1

0 Q2

Q3

Q4

4.4.1

Targeted, risk based and proportional training for staff delivered during 2014/15.

13i

The Health and Safety Team in conjunction with Organisational Development are planning to develop more e-learning packages during 2015/16, including:     4.5

Asbestos Awareness Personal Safety Ladders / stepladders Sharps awareness

Fire Risk Assessments

Fire Risk Assessments 2014/15 Q4 Q3 Q2 Q1 0

10

20

30

40

Low Rise

50

60

70

80

High Rise

The Health and Safety Manager is responsible for a cyclical programme of fire risk assessments in accordance with the Regulatory Reform (Fire Safety) Order 2005.

During 2014/15 45 high rise and 86 low rise fire risk assessments were undertaken.

4.6

Construction Related Health and Safety Monitoring Management and monitoring of construction and premises related risks are proactively monitored and managed by the Health and Safety team.

The following higher risk areas of activity will continue to be reported to Board every six months.

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4.6.1

Compliance with the Construction, Design and Management Regulations 2007 Construction Design Management (CDM) regulations place duties upon clients and contractors for construction related work involving over 30 working days or 500 man hours.

During 2014/15 YHN had 40 CDM client reportable schemes, two of which are on behalf of the Byker Community Trust.

From 06 April 2015 the new CDM regulations came into force. Specific YHN staff, including the Health and Safety Manager, Technical Services Manager and two Property Services Managers (Planned Investment) have attended training and briefing sessions around these changes.

A full detailed report of the implications of these changes will be presented as part of the next Health and Safety Board report including identifying all staff who will have undergone full training.

4.6.2

Contractor Performance Contractors engaged by YHN to carry out construction related activity are monitored to ensure compliance with relevant legislation.

During 2014/15 the health and safety team challenged one roofing contractor on working practices and non-compliance with Personal Protective Equipment (PPE) equipment on site, a requirement under CDM Regulations, and one external works contractor regarding site safety.

These matters were resolved following intervention from the health and safety team.

4.7

Compliance with the Control of Asbestos Regulations 2012 The Control of Asbestos Regulations 2012 came into force on 6 April 2012, updating previous asbestos regulations from 2006.

YHN are compliant with these regulations including asbestos monitoring of communal areas.

425 communal asbestos surveys have been carried out during 2014/15. An additional 56 blocks were identified as having previously not been surveyed.

4.8

Water hygiene monitoring and control YHN engages a specialist contractor to undertake water hygiene monitoring on behalf of the organisation. Risk assessments (undertaken every two years) are currently being completed by the contractor. Any follow on actions are actioned by staff within Property Maintenance.

Eight Technical staff within Property Maintenance have now completed all four modules of the City and Guilds accredited Water Hygiene training during 2014/15.

Technical staff within Property Maintenance are undertaking City and Guilds accredited water hygiene training. Parts 1 and 2 training are now completed parts 3 and 4 training will be completed during Quarter 3 of 2014/15.

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5.

Major Incident Reporting

5.1

During 2014/15 Board received individual detailed reports on the following incidents:  Crane collapse at Cruddas Park  Dean House gas incident  Iris Steadman House tenant accident during refurbishment works

6.

External Agencies

6.1

There have been no further cases of cross party intervention with external agencies during Quarter 3 and 4 of 2014/15.

7.

The Business Implications

7.1

Mission and Strategic Objectives The management of health and safety is an integral part of YHN’s overall management of staff, properties and office accommodation and impacts on all three strategic objectives:

7.2



Make the money deliver



Create homes and neighbourhoods we all can be proud of



Work together to realise a brighter future.

Value for money/efficiencies The health and safety team manage risk proportionately and effectively to reduce the likelihood of accidents or incidents, leading to staff absences or construction related delays.

7.3

Resources (financial, property, technological or human) Current and planned activity is to be contained in existing budgets.

Properties and people are protected by this area of work.

The proportionate and effective management of health and safety reduces the risk of financial loss through litigation and staff absence.

7.4

Impact on services/performance The health and safety team proactively manages compliance with legislation, staff training and construction related activity.

The effective management of health and safety ensures there is no negative impact on the delivery of services or organisational performance.

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7.5

Outcomes for tenants/leaseholders The health and safety team engage with staff, residents and contractors to ensure work undertaken poses no risk to tenants, leaseholders or the general public.

7.6

Risk (reputation, relationship) Mitigation against risk is managed through a continued programme of risk assessments and audits. Following risk assessment and audit, proportionate, and relevant risk mitigation measures are implemented, where necessary.

7.7

Environmental There are no direct environmental impacts from this report. Effective management of health and safety, and risk mitigation frequently deliver positive environmental impacts

7.8

Legal YHN Board will receive six-monthly health and safety reports and undergo relevant health and safety training to ensure compliance with health and safety legislation.

The Health and Safety Committee is a legal requirement under the Safety Representatives and Safety Committees Regulations 1977 and the Health and Safety (Consultation With Employees) Regulations 1996. The attendance of a Board member at Committee level to input their opinion and recommendations into the formulation of new policies and resolving any outstanding health and safety issues not resolved at forum level and would be beneficial to YHN’s governance of its health and safety policy and OHSAS 18001 compliance.

The Health and Safety Forum is not a legal requirement but good practice and is used as a forum for staff to voice health and safety concerns. Board members are not required to attend meetings at this level.

7.9

Equality and Diversity and Community Cohesion There are no direct impacts on equality, diversity or community cohesion from this report.

The new Health and Safety Policy was subject to an equality analysis and there were no negative impacts identified on the protected characteristic groups under the Equality Act 2010.

7.10

Stakeholder Involvement / Consultation It is recognised that it is essential to have continued staff engagement to embed a health and safety culture throughout the organisation.

Stakeholder consultation is undertaken through the health and safety forum, engagement with trade unions is undertaken through regular Joint Consultative Committee (JCC) meetings and bi-annual Health and Safety Committee meetings.

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8.

Conclusion and Recommendations

8.1

Board are recommended to: 

Receive the six-monthly health and safety monitoring report.

9.

Implementation

9.1

Board will receive six-monthly health and safety monitoring reports plus interactive sessions on higher risk areas of business.

Background Papers: None

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Paul Lumsden by telephone on 0191 278 8609 or email paul.lumsden@yhn.org.uk

Page 99 of 124

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Page 100 of 124

CCAS Capital

Replacement Footpaths Slatyford Estate

Tarran Bungalows

Gill Street brickwork Additional

Hadrian House/ Moor House Additional

Iris Steedman House Communals

David Langhorne 2 Property Services

David Langhorne 3 Property Services

David Langhorne 4 Property Services

David Langhorne 5 Property Services

David Langhorne 6 Property Services

Scheme

David Langhorne 1 Property Services

No. Officer

Directorate/ Delegated

38 Keepmoat

36 Keepmoat

Funding of £413,400 from Communal Area improvement programme

48 BCE

55 BCE

Funding of £650,000 from Investment Programme - Sheltered

Funding of £443,477.5 from Spend to Save - Investment Programme

Funding of £174,900 from Spend to Save - Investment Programme

216 HLS

Funding of £129,126.02 from Spend to Save - Investment Programme

Contractor

N/A ESPO Framework

Units

Funding of £150,000 from Lifecycle Other - CCAS

Cost/ Budget provision

Westgate

13ii

Newburn/westgate

Benwell/ Scotswood

East Gosforth

Fenham

Citywide

Wards

Delegated Decisions – Schedule of non-confidential Delegated Decisions taken between 10th March 2015 and 13th April 2015

Board 5 May 2015

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Liddle Road refurbishment

David Langhorne 9 Property Services

79/81 Golspink Lane Installation of insulated render system, Window Replacement and reRoofing atCruddas Park House - Additional Funding of £1,081,045.19 from Cruddas Park House Investment Programme

Funding of £20,698.62 from Investment programme - Roof replacement

Funding of £95,400 from Investment Programme - Spend to save

159 Wates Living Space

2 John flowers

81 BCE

6 Southdale

140 BCE

Funding of £95,000 from Investment Programme - Windows and Doors Funding of £187,183.43 from Standard housing investment spend to save

n/a n/a

Funding of £106,000 from Investment programme community buildings

Benwell/Scotswood

South jesmond

East Gosforth, Westerhope

Westgate

Citywide

Citywide

All projects were approved as part of the Investment Delivery Programme contained within a report entitled ’30 Year HRA Financial Model and Other Financial Issues’ which was considered by the Board on 11 December 2012.

David Langhorne 12 Property Services

David Langhorne 11 Property Services

SE Ducts & Drying cabinets

R&M SBD Doors Capitalisation

David Langhorne 8 Property Services

David Langhorne 10 Property Services

Demolition of community buildings

David Langhorne 7 Property Services

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Board 5 May 2015 Petitions Monitoring Report by Chief Executive For Information 1.

Background information

The Petitions Protocol states that the Chief Executive will refer petitions relating to operational issues to the appropriate Head of Service who will be responsible for contacting the petitioners (or petitioners’ representatives).The Head of Service will make any further enquires which are required and draft a response on behalf of the Chief Executive. The Chief Executive will ensure that Your Homes Newcastle responds to the petitioners’ request.

2.

Petitions received

Date received

Petitioner(s)

Issue

Action

27 March 2015

Residents of Slatyford, West Denton, Blakelaw and Westerhope.

Shrubs cut back, cameras installed and street lights either side of bridge, following sexual assaults in the area.

Response actioned by the Tenancy and Estate Manager 2 April 2015.

Shrubs works actioned Liaise with police regarding cameras Street lights not working reported to Newcastle City Council

The area of works requested are not the sole responsibility of YHN, but the Tenancy and Estates Officer has worked closely with the residents and Police to ensure action was taken to help mitigate the problems.

Detailed paperwork relating to the petition has not been included in the Board papers. If you would like to see the specific details please contact Jill Davison.

3.

Recommendations

3.1 Board is recommended to note this information.

Background Papers Petitions Protocol Contact Officer: Jill Davison by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk Page 102 of 124

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Board 5 May 2015 Board Forward Plan 1

Board Forward Plan

1.1

This Board Forward Plan lists the reports known at the present time that will be presented at the Board meeting on 16 June 2015 (or amended date subject to confirmation): Board Reports Risk Register

Non-confidential

Sheltered Programme

Non-confidential

Disaggregation update

Non-confidential

Governance self-assessment Action Plan

Non-confidential

Employability Task & Finish Group report

Non-confidential

Digital by Choice

Non-confidential

Investment & Services Procurement Plan

For information

Social Value Act update

For information

Walker & Walkergate High Rise Review

Protect

Churchwalk Shopping Centre

Protect

Byker Contract

Protect

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Jill Davison, Company Secretary by telephone on 0191 278 8624 or email jill.davison@yhn.org.uk

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13v Customer and Service Delivery Committee 10 November 2014 (4.30 pm - 6.55 pm)

Present: P Dutton (Chair) N Shukla L Middlemiss T Moore J Reid J Stokel-Walker In attendance: N Scott David Langhorne A Pearce M Burn A Allison L Horsefield L Henderson Gray A Stewart S Halliwell R Burns Ash Gibson N Hunt (in part) B Joyce

1

- Director of Tenancy Services - Director of Property Services - Assets and Programming Manager - Head of Support and Care - Head of Income and Tenancy Management - Head of Business Strategy - Project Manager - NCC Housing partnership Officer - Advice and Support Manager - Lead Service Quality Officer - Technical Services Manager - CSE Assessor - NCC Democratic Services

APOLOGIES FOR ABSENCE Apologies were received from Marion Talbot.

2

DECLARATIONS OF INTEREST None.

3

MINUTES OF THE MEETING HELD ON 15 SEPTEMBER 2014 RESOLVED – That the minutes of the meeting held on 15 September 2014 be agreed as a correct record and signed by the Chair.

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4

ACTION LIST AND WORK PLAN Submitted: Report by Neil Scott (Director of Tenancy Services) to provide information on the Customer and Service Delivery Committee workplan and the action list (previously circulated and copy attached to the official minutes). (a)

Work Plan (November 2014 to March 2015) 

(b)

Noted

Action List

N Scott introduced the report and stated that the actions from the last meeting - to ensure the role of the Unions was explicitly referenced in the Board report and to ensure reference to mental health and wellbeing was reference in the final version of the policy – had been taken forward; the Board had agreed the Health and safety Policy in September.

It was hoped that the January meeting of the Committee would be held at Moor House. The Chair and N Scott were having discussions to look at the potential to hold Customer and Service Delivery Committee meetings in different locations to allow members to have a look around particular schemes see the quality of the work and possibly talk to residents.

The Chair raised the issue of a potential clash of diary commitments for some committee members. Add to Action List – members would be contacted regarding availability in the near future.

VARIATION TO AGENDA ORDER RESOLVED – That items 6 and 8 be taken next to meet officer requirements.

5

SURVEY OF TENANTS AND RESIDENTS Submitted: Presentation by Louise Horsefield, Head of Business Strategy and Richard Burns, Lead Service Quality Officer (previously circulated and copy attached to the Official Minutes).

Richard Burns introduced the presentation which included information on the background to STAR, the methodology, the results, the 28.99% response rate, data analysis, headline trends, comparison with 2011/12 STAR, questions about the neighbourhood, key driver analysis factors which most heavily influence overall satisfaction, the action planning matrix, the Net promoter score [YHN’s NPS (+14%) is in line with BMG’s median score] and how STAR findings would be used.

A more detailed breakdown of the data was available for members to take away.

Members were asked to email officers with any questions on the additional data.

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Member comments /points raised in discussion  

    

6

It was confirmed that the survey was sent to the named tenancy holder.

It was suggested that it could be useful to target 100% of young tenants in the future as well as targeting individual members of households. A note providing more information regarding demographics would be sent out to members - Add to Action List.

The survey findings would act as a driver for, and feed into, service improvements going forward.

With regard to the accessibility of the questionnaire, R Burns advised that it was standard in design and as advised by BMG. A language line facility was available during the survey if required.

Although there was a variance from the headline data this was not statistically different enough to invalidate the findings.

In response to a point about VfM being accounted for (regarding the tenants not in receipt of Housing Benefit), R Burns said he would further examine the specifics and email members - Add to Action List

CUSTOMER INSIGHT Submitted: Report of Lead Customer Involvement Officer for information (previously circulated and copy attached to the Official Minutes).

7

INVESTMENT PROGRAMME Submitted: Report of J Vinton (Head of Investment Deliver) (previously circulated and copy attached to the Official Minutes).

Andrea Pearce (Assets and Programming Manager) introduced the regular Performance and Progress Update report to provide Committee with information on the investment programme including the:  

Scheme progress during Quarter two of 2014/15 Performance during Quarter two of 2014/15

The current expected outturn for the 2014/15 investment programme was £50.4M. The report provided budget allocations and updates on the Lifecycle Programme, Standard Housing Investment, Environmental, Regeneration and New Build.

Appendix 1 provided detailed information by scheme; the graph at Appendix 2 indicated the expected spend profile; Appendix 3 contained details on Customer Satisfaction from Quarter Two 2014/15; and, Appendix 4 detailed key performance indicators for the Housing Investment Programme.

Member comments /points raised in discussion 

The fact that telephone surveys were still used as a feedback mechanism was discussed. Customer and Service Delivery Committee had previously agreed that this method was not appropriate for all customers and that YHN NOT PROTECTIVELY MARKED Page 106 of 124

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4

  



8

had to be more responsive to tenants needs. Officers would look into a different approach and how it would be adopted organisationally.

With regard to failing double glazed units, members were informed that the units were coming to the end of their lifecycle. Warranties were now provided with newly fitted units.

The issue of repairs and contracting not being joined up was raised by the Chair. D Langhorne agreed to look into this - Add to action list A member said that he had been very pleased with the work of a contractor who had fitted a new boiler. However, the follow up work was not as expected and could cause overall satisfaction rates to drop. A Gibson suggested that although making good works was programmed in, it may not be given priority due to the volume of work and the catch-up required. BCE had been given the opportunity to re-programme their work, realign resources and get back on track; the intention was to get back to properties to carry out follow up work within a day or two.

Committee members would be emailed with clarity on the Boiler Replacement Programme being carried out by BCE (i.e. the 91% satisfaction with constructor and the overall 77% satisfaction rates) - Add to action list.

ANTI-SOCIAL BEHAVIOUR POWERS Presentation by Allison Allison (Head of Income and Tenancy Management) on YHN and anti-social behaviour (circulated at meeting).

Allison Allison advised that Nick Dodgeon (ASB Manager) could not be at the meeting and went on to give the presentation. The presentation included information on YHN’s huge contribution to community safety, YHN resources for managing ASB, the types of ASB dealt with, statistics from a typical year, the renewed focus on putting victim’s first and a more effective response, and support for communities and partners.

The presentation also included details of the Anti-social Behaviour, Crime and Policing Act 2014 which reduced the existing suite of powers from 19 to 6, would simplify and speed up processes and provided key new injunctions and grounds for possessions for social landlords.

In preparing for the new powers a comprehensive training package had been delivered to YHN’s specialist anti-social behaviour team (HASBET) and the Tenancy and Estate Management Team; procedures had been updated and new documentation prepared; there was an agreement with NCC for YHN to have delegated authority to use new Community Protection Notices and a single point of contact had been agreed for Community Trigger.

The following points were raised during the discussion of the presentation.

A Allison confirmed that ARCH should have been included in the presentation and that training was being delivered via the ARCH team. Monitoring data would be collected and this would identify certain groups that were under-reporting. The Safe Newcastle Partnership had a range of sub groups which picked up on issues such NOT PROTECTIVELY MARKED Page 107 of 124

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as residents feeling safe and confident; however, awareness raising would be looked at more proactively.

It was recognised that incidents were under-reported from analysis of other sources of data, for example, through the MARAC data or individuals supported through rehousing.

Terrorism threats were dealt with under different procedures. However, YHN had responded accordingly to a recent incident in the city and officers had done a lot of local work with residents on community confidence.

It was confirmed that tenancy and estate management staff had done work to identify vulnerable tenants and were looking at the possibility of more pro-active intervention to try and gauge what was happening and engage with people not reporting. Other methods of reporting were also being looked at.

YHN had internal processes to deal with all service enquiries and any complaint against the organisation would be internally investigated in the first instance. If a customer remained dissatisfied they could approach the ombudsman or appoint someone else to act on their behalf.

The new ‘community trigger’ meant that a representative in the council would investigate the complaint across all partners and could escalate the situation if appropriate.

The majority of the new powers came into force on 20 October 2014 and the remainder would follow in January 2015.

Customer and Service Delivery Committee members agreed to suspend Standing Orders to allow the agenda business to be completed before the close of the meeting.

9

DATE AND TIME OF NEXT MEETING 4:30pm on Monday 12 January 2015 – venue to be confirmed.

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13v

Finance and Resources Committee 15 January 2015 (5.00 pm - 6.50 pm) Present: E Snaith P Dutton V Dunn E Snaith L Stephenson

(In the Chair)

Also present: L Middlemiss (observer) IN ATTENDANCE L Forrest G Ellingham B Elder M Grainger L Dunlop S O’Neil J Miller 14

Director of Finance IT Manager HR Manager Income Service Manger Income and Sundry Debt Manger Policy and Business Support Democratic Services

APOLOGIES FOR ABSENCE Apologies for absence were received from P Dibbs.

15

DECLARATIONS OF INTEREST V Dunn declared an interest as the Newcastle City Council (NCC) Cabinet member for resources.

16

MINUTES OF MEETING HELD ON 24 JULY 2014 The minutes of the meeting held on 24 July 2014 were approved as a correct record and signed by the Chair.

17

NOTES OF INQUORATE MEETING HELD ON 16 OCTOBER 2014 The notes of the inquorate meeting held on 16 October 2014 were noted.

18

ACTION LIST REVIEW Page 109 of 124

2

30 Year Model - L Forrest reported that a document was being drawn up which would set out the strategic functions moving over to NCC and describe the role of the Board and NCC Cabinet in relation to the Housing Revenue Account (HRA). It would be discussed at March Board and would provide clarity about the role of the Finance and Resources Committee going forward.

Key HR Policies: Dignity at Work – presentation to be given at next meeting.

RESOLVED – that the action list be received and updated accordingly.

19

DEBT WRITE OFF 2014 - 15 Submitted: Report by Income Manager and Sundry Debt Manager (previously circulated and copy attached to Official Minutes) L Dunlop introduced the report which provided a detailed breakdown of former tenant rent, housing benefit, court cost, heating charge, service charge and rechargeable work arrears accounts which were being recommended for write off.

The following issues/ queries were raised in debate:



  

In response to a member’s query as to why there had been a £60k increase in the amount recommended for write off compared to the same period last year, L Forrest advised this was partially due to inflationary pressures and the impact of the under occupancy charge.

It was noted that the housing benefit overpayments being recommended for write off were historical cases. Two of the cases related to housing benefit fraud.

Under the new housing benefit system YHN was no longer responsible for collecting these overpayments, so the number of these accounts would reduce overtime.

Members asked to be provided with information on YHN’s policy in relation to current tenants who had been found guilty of housing benefit fraud but were still YHN tenants.

Members expressed disappointment about the amount of money being recommended for write off and, therefore, not being paid into the HRA. They felt that this level of write off was not sustainable.

It was noted that the figure proposed for write off equated to less than 1% of the rent and services charges. The current arrears collection target had been met. In terms of benchmarking this level of write off was on a par with what was being written off by many authorities and in fact many organisations wrote off more debt at an earlier stage in the debt recovery process.

RESOLVED – that: i. ii.

20

The report be received.

Future write off reports to make clear whether committee was being asked to make a decision and if not where the decision was being taken.

DEBT WRITE OFF 2014 -15 (INVOICES)

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Submitted: Report by Income and Sundry Debt Manager (previously circulated and copy attached to Official Minutes) L Forrest introduced the report which provided a schedule for proposed write offs which related to invoices raised for the Furniture Service, Leasehold Management, rechargeable works, repairs and void properties. She advised that in future the Finance and Resources Committee would not have a role in the write off process as it would be undertaken NCC. It was noted that authorisation had been requested from NCC Director of Resources, with an expected approval date during February 2015. However, the Finance and Resources Committee were being asked to formally approve the write off of the Furniture Service element of the debt, as following disaggregation YHN would take control of some of these assets particularly in trading services.

The following issues / queries were raised in debate:





In response to a member’s query, officers explained that the debts that were recommended for write off related to unpaid invoices which were deemed unrecoverable. Once the recovery process for a particular debt had been exhausted a decision regarding write off needed to be taken within the financial year, otherwise the debt would remain on the accounts.

Member’s expressed concern that two staff had been able to leave the organisation with outstanding debt to the Bike to Work scheme. They stressed the need to ensure that it was written into employee’s contracts that they would be required to pay any outstanding debt to the organisation when they left.

The Chair emphasised the need for clarity about where the responsibility lay for decisions relating to the HRA.

RESOLVED – that:i.

The report be received. ii.

The write off of the Furniture Service element of the Debt Write Off 2014- 15 (Invoices) be approved; and iii.

The write off of the other debts detailed in the report be noted. iv.

Officers look into changing the terms of the Bike to Work scheme to ensure that officers could not leave the employment of YHN without repaying any money they owed.

21

ARREARS MONITOR Submitted: Report by Income Manager (previously circulated and copy attached to Official Minutes) M Grainger introduced the report which provided a breakdown of arrears at 4 January 2015, pointing out that performance on current rent arrears was currently on track to exceed the annual target. She advised on the negotiation skills training course that Income Recovery staff had undertaken and the positive results, in terms of the increase in payment arrangements and the numbers setting up direct debits.

The team continued to try various methods to find the most effective way to contact tenants in arrears. Instead of the usual Christmas letter campaign, texts had been Page 111 of 124

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sent to every tenant in arrears reminding them of how they could make payments; this had generated a better response than the letters had previously.

A member advised that NCC were making changes to the layout of their Council Tax bills following an LGA pilot scheme on ‘eye tracking’ which meant letters were laid out in a format that immediately drew the key information to the reader’s attention, she suggested YHN may wish to consider this approach for Council Tax bills.

RESOLVED – that: i.

The report be received. ii.

M Grainger speak to the NCC Service Manager, Revenues, Benefits and Exchequer Services about the changes that were being made to the layout of the Council Tax bills.

22

EQUALITY AND DIVERSITY DRAFT ACTION PLAN S O’Neil introduced the report which provided the draft Equality and Diversity (E and D) Strategy and Action Plan for discussion and recommendation to Board, subject to any amendments.

The following issues/ queries were raised during debate:  



In response to a member’s query, S O’ Neil advised that the staff trade unions had not been consulted during the development of the strategy and action plan.

In order to provide a better analysis of some of the outcomes, it was suggested that the Newcastle Future Needs Assessment data should be considered in conjunction with YHN tenant and YHN staff data.

The action plan should be more target focused and spell out the outcomes on all of the actions, in order to allow members to judge progress and understand what had been achieved when receiving future update reports.

For example, it was suggested that an action such as talking to Non-White British residents to understand why they did not access Sheltered Housing provision, should make reference to what a proportionate allocation in terms of Sheltered Housing in terms of the protected characteristics groups in the city would look like, to allow future comparisons to be made.

It was noted that YHN had dropped from 30th to 98th in the Stonewall Workplace Equality Index 2015. S O’Neil advised that the framework had changed and had been much more challenging this year. There would be discussion in the organisation about how to respond to this change in rating following detailed feedback from Stonewall in February.

RESOLVED- the Equality and Diversity strategy and action plan be approved for recommendation to Board subject to:i. ii. iii.

The staff trade unions being consulted on the action plan; YHN tenant and YHN staff data being used in conjunction with the Newcastle Needs Future Assessment; and The action plan being amended to contain expected outcomes for all of the actions, in order to allow future monitoring of the progress.

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IT STRATEGY - PRESENTATION G Ellingham gave a presentation (copy of presentation material attached to Official Minutes) to the committee on the Business Strategy ICT plan, outlining the work being undertaken on inclusive digital housing services, location independent working and smarter use of information technology. He also updated the committee on operational services, highlighting work relating to welfare reform and Universal Credit. He circulated a copy of the YHN Business Strategy ICT Plan 2013-16 and the YHN 4 - Year Strategic ICT Roadmap (tabled and copy attached to Official Minutes). He explained that the plan had not changed since it had last been presented to committee although it was felt that it would be useful to present it again as there had been changes to the committee membership.

In response to a member’s query, G Ellingham confirmed that Universal Credit was supposed to be a digital service. However, there were still issues to be resolved around data sharing between the Department of Work and Pensions, housing providers and local authorities. Partnership agreements were to be established which should help to resolve some of these issues, but work on the partnership for this region had not yet started.

RESOLVED- that the presentation be noted.

24

EXCLUSION OF PRESS AND PUBLIC RESOLVED – that the press and public be excluded from the meeting during consideration of the Sickness Absence and Workforce Equality Monitoring Data reports because of the likely disclosure of confidential information.

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Board 5 May 2015 Universal Credit Report by Director of Tenancy Services For Information 1.

Background

1.1

This report is to provide Board with an update on Universal Credit (UC) and a summary of key activity that has been on-going since the board report in February 2015 detailing the progress the implementation project has made in order to prepare for the introduction of UC. UC is a means tested benefit for working age people on low incomes, which are working, seeking to work or are unable to work. UC will replace Incomebased JSA, Income Support, Child Tax Credit, Working tax Credit and housing benefit. These benefits are administered by the DWP, HMRC and local authorities. UC is expected to be rolled out across the country in full

by December 2019.

2

Implementation

2.1

Universal Credit was introduced in April 2013 in certain pathfinder arears of north west England. Since October 2013, it has progressively been rolled out to other areas.

2.2

85,110 people have made a claim for Universal Credit up to 9 th April 2015.

The rate at which people are claiming has increased as the roll out continues.

52,630 of the people who have made a claim have, up to 12th March 2015, attended an initial interview, accepted their claimant commitment, and gone on to start Universal Credit.

46,920 people were on the Universal Credit caseload, as of 12th March 2015. Of these, 14,550 (31%) were in employment and 32,370 (69%) were not in employment.

2.3

From 27th April, Newcastle Job Centres will start to receive new claims for UC for people who otherwise would have claimed Job Seekers Allowance.

There are several restrictions on who can claim and the application process Page 114 of 124

currently acts as a gateway to only allow those that are straightforward and uncomplicated to make a claim. We were advised in December 2014 from NCC’s revenues and benefits service to expect around 816 claims in the first year. Tenants who live in the east of the city and who are registered at a North Tyneside job centre will start to make claims in tranche three which will be rolled out between September and November 2015.

2.4

Potential Impact on Rent Arrears We have carried out some predictive analysis work based on the learning from the direct payment pilots. For the 816 claimants that are identified as being the number who may make a claim for UC with housing costs we estimate that 13.2% of rent may not be collected over the year, which is £487,180 at risk to the HRA. This is calculated by applying the learning from the direct payment pilots, where there was an impact on the rent collection rate for the initial period after a tenant moved to UC and the subsequent period. Using an average rent figure for a two bedroom flat and assuming that the 816 are evenly distributed across the year (e.g. 16 new claims per week) we estimate the collection rate to be:    

The same as for all tenants in the weeks leading up to moving on to UC 99.92% During the first five weeks after claiming UC. 0% During the first three months after claiming UC 65% After the initial three months 98.92%

The graph below shows the income at risk during the year, illustrating the increase as new claimants transfer to UC over the year.

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YHN Implementation Response

3.1

Universal Credit Implementation Project YHN Implementation project has developed an action plan and workstreams have been established. An interim day one solution has been developed in order to prepare for the 27 April.

To support the initial roll out and implementation of UC we have appointed one Income Recovery Officer and one Advice and Support worker to work alongside the UC Implementation Manager. It is intended that the two staff will become operational experts and will assist those tenants affected by UC from the outset; they will receive on-going support from the UC Implementation Manager and commenced their roles on 20 April 2015.

UC awareness training has begun with staff across the organisation. YHN have delivered jointly with the DWP briefing sessions with 236 staff during April and the sessions covered welfare reform, universal credit and YHN’s implementation project. In March 2015, the Council’s Cabinet considered a report on the impact of welfare reform on Newcastle and the roll out of UC. In addition to this the City Council hosted briefing sessions in partnership with the DWP which YHN staff also attended.

3.2

Delivery Partnership Agreement (DPA) The DPA is the DWP’s mechanism for developing partnership working between agencies involved in providing services to the vulnerable. NCC, DWP and YHN have been negotiating what will be provided and at what cost. The DPA supports the national expansion of UC as an interim measure until the final universal support offer is in place. More detail on this is likely to be available in autumn of 2015.

There are three elements to the DPA. Firstly, support for the DWP to assess housing costs and the manual processing of the local council tax reduction scheme. This support is to help the DWP accelerate roll out whilst they finalise their computer and staffing systems. This support will be provided by the council’s revenue and benefits section.

The other two elements relate to support for vulnerable people to make the transition to UC. This is support to make claims online and to cope with budgeting monthly payments. The DWP estimate that of the first tranche, 605 people in 2015-16 will require one hour of support to make and manage their claim on line and 201 people will require up to six hours of support with budgeting. The online support will be provided as part of the council’s digital by choice programme and budgeting support will be provided by YHN for our tenants.

3.3

Newcastle Universal Credit Support Partnership In preparation for UC the city council, YHN and Job Centre plus have been trialling a framework to help inform our approach to how we identify and respond to those who need additional help to make and manage a UC claim. This is done by testing whether there is appropriate, timely services Page 116 of 124

and support in place that can help residents of Newcastle overcome obstacles by demonstrating situations where Alternative Payment Arrangements (APA’s) will be necessary to avoid vulnerable residents accruing rent arrears. The focus of the triage trial covers the following;    

Digital – to support residents to go online and manage claims / transactions Financial – to support residents to budget and manage monthly payments Employment – to support residents to access training and employment Housing – to support residents to sustain their tenancies.

Our Advice and Support Team Manager has been involved in this trial which commenced on the 10 February and ran for one month ending on the 9 March.

4

Business Implications.

4.1

Purpose and objectives By taking an approach that maximises income collection whilst supporting tenants we will contribute to our strategic objectives of;  

4.2

Make the money deliver Work together to create a brighter future.

Value for money and efficiencies: The implementation project includes actions that are intended to ensure we deliver efficient services that are value for money. Examples include the potential to offer tenancies starting on any day of the week and reviewing IT systems so that there is an efficient cash flow process in place for UC housing costs from the DWP.

4.3

Financial Implications YHN Board previously agreed to establish a reserve specifically for welfare reform related activity. This reserve is now managed by the council and we have received approval for an initial draw down of funds in order to assist us in the preparation of Universal Credit, and wider welfare reform activity.

4.4

Impact on services / performance There will be limited impact on services in the short term however as the roll out of UC progresses it may be necessary to review job roles, particularly to ensure that we provide appropriate support to individuals to make and manage claims online.

Section 2.4 sets out the potential impact on rent arrears levels for 2015/16.

The Income Management strategy being considered elsewhere on the agenda will support customers and staff in order to maximise income.

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4.5

Outcome for tenants/leaseholders The impact of Universal Credit will vary by and even within household types. Every household type includes families that will see a higher entitlement under UC and families that will see a lower entitlement. This will cause some households to be better off and others to be worse off.

A large percentage of council tenants and leaseholders will be affected by Universal Credit. Currently over 64% of tenants are currently in receipt of Housing Benefit and will be responsible for managing a monthly payment and paying their rent directly to YHN.

4.6

Risk (reputation and relationship) YHN and the City Council have developed a reputation for low evictions and reduced homelessness. The introduction of Universal Credit presents a risk of increased rent arrears which could ultimately lead to eviction. This may affect our relationship with statutory and voluntary sector partners. UC does present a unique opportunity to build positive relationships with the DWP and we hope by working jointly with the council we can prevent evictions and sustain YHN tenancies.

4.7

Environmental There are no direct environmental impacts following the introduction of Universal Credit.

4.8

Legal UC is a significant element of the Welfare Reform Act 2012 and its implementation is determined by further regulation and guidance. In terms of our implementation project there may be changes to tenancy agreements which will require discussion with Legal Services.

4.9

Equality and Diversity and Community Cohesion The introduction of Universal Credit may increase tenancy turnover and homelessness which could impact on community cohesion and sustainability of estates.

4.10

Stakeholder Involvement/consultation: We have been working with the council and other partners as part of the welfare reform strategy board. We have developed a communication plan as part of our UC implementation project that encompasses internal and external stakeholders.

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Governance of the UC project and actions associated from the action plan are monitored.

5.1

The introduction of Universal Credit presents a significant challenge to our tenants and YHN. Whilst the principles of making the benefit system simpler and fairer with an emphasis on making sure that work pays are to be supported, some of our tenants may struggle to budget and manage a monthly payment.

YHN will continue to develop appropriate responses and support tenants but in doing so also raise the importance of paying rent and avoiding arrears.

5.2

Board is recommended to 1) Note progress made on delivery of the Universal Credit Implementation Project.

6

Implementation

6.1

The YHN UC Implementation Project meets monthly and lead officers have been identified for the themes within the project.

Reports will be brought back to Board on a quarterly basis during 2015/16.

Background Papers Universal Credit report to YHN Board February 2015

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Neil Scott, by telephone on 0191 278 8711 or email neil.scott@yhn.org.uk

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Board 5 May 2015 Briefing Note from Newcastle City Council (NCC).

Digital Newcastle – Digital by Choice update

For Information

1.

Introduction

1.1

This briefing note by Tony Durcan, Assistant Director at NCC aims to bring Board Members up to date with progress with the Digital by Choice project prior to receiving a more detailed report in June.

2

Background

2.1

Between January (when the project was mobilised) and April 2015 the core digital team has:  Built Team Digital – NCC and YHN officers form across both organisations.  Developed and consulted on the draft vision, confirmed the final version, and is now sharing feedback on consultation. No change to vision itself, but feedback will be be referenced when developing implementation plans.  Provided a cross cutting framework for 2015/16, which brings “stability and accelerated improvement”. This will ensure an appropriate level of coordination to digital activity across NCC (and YHN where relevant), which is cohesive and uses resources in most efficient way.  Begun to encourage an agile approach from multi-disciplinary YHN/NCC teams – digital and enabling.  Moving forward we will: o make the best of the situation we are in to improve customer experience, decrease costs and maximise income; o Rationalise systems through a corporate approach. o and at the same time research and plan more wide ranging opportunities for 2016 and beyond. The plan for this second Page 120 of 124

stage will be produced for September 2015.

3

Key points from the emerging 2015/16 Digital Plan.  

    

Providing trusted, reliable and easy to use online transactions which will significantly reduce face to face activity – the top 25 through Customer Service Centres and the top 8 through YHN. Stabilising the estate and streamlining the digital offer, eg: o shaping our short term offer/online presence (April 2015); o Office 365 rollouts; o People’s Network renewal (Sept 2015); o wifi in public buildings/YHN community spaces (Sept 2015); o completion of Go Digital Newcastle project (March 2016).

Digi members (November 2015-March 2016) Digital skills awareness month (internal and external) – June 2015 External digital campaigns and skills support, and agreeing our inclusion net – July- December 2015. First campaigns yet to be agreed but development may need to commence prior to the June YHN Board Becoming digitally agile – Team Digital (June 2015) Commission external challenge (September/October)

4

Next Steps

4.1

Full report and plan detail will be presented to June YHN Board.

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Geof Ellingham, Head of IT on 0191 278 4392 or geof.ellingham@yhn.org.uk

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A vision for consultation 1. Introduction We live in a digital world. Our daily lives are increasingly built around services which are delivered digitally. An ever increasing number of us expect to be able to conduct daily routine business and activity digitally. For many, perhaps the majority, this is now their preference over any other forms of contact. The world is becoming digital by choice.

The City of Newcastle is at the forefront of this Digital Change. Partners across the City – including the City Council, Universities, business community, and other public service providers are quickly recognising that Digital can be the key to unlocking economic growth and becoming a world class city – one that is safe, sustainable, cares for vulnerable people and encourages learning and achievement.

Effective use of digital services by citizens, businesses and the voluntary and community sector has the potential to transform the way our City works and transform people’s lives: boost productivity, drive economic growth, provide jobs, connect individuals and revitalise the way services are delivered.

To enable this we need citizens, old and young and businesses, big and small, to have the right skills and access to modern and reliable technology. As a City we are gearing up to provide this, but we know that more can be done to join up provision and opportunities, and present a truly citywide vision. Our discussions with partners are ongoing and we will continue to use our influence to promote the broader ‘Digital Newcastle’ agenda.

Within this increasingly digital environment, Newcastle City Council has not kept pace with change. We have yet to make it easy enough for those who want to engage digitally, nor have we made a persuasive case to those who are hesitant and unconvinced about the benefits of being digitally active. We need to develop a digital service offer which matches and surpasses customer expectations to the point where it becomes the channel of choice.

Our vision is to have excellent digital services which are so easy to use that they are naturally the way people choose to engage with us.

We want to:   

Improve digital opportunities for residents to help them access an improved customer experience (for NCC services and beyond) Minimise internal costs of service Maximise income

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Newcastle City Council: Digital by Choice.

Improving our digital services means designing simple, seamless and user-friendly processes that make it easy for customers to access services and make payments whenever and wherever they want to. It means capturing the right information in the right format to enable us to improve services and efficiency.

But it isn’t limited to traditional services and activities. We want to promote digital change in everything we do –encouraging and supporting the use of digital technology in social care and health settings, using social media to crowd source funding for community assets, understanding how technology can change the way we deliver front line services and many more. As the Council faces up to increasing budget reductions, we need to use Digital to help change our service provision while maintaining outcomes for residents, partners, suppliers and customers.

It also means ensuring our staff have a ‘digital mindset’, and not only fully understand how digital can change and improve lives, but actively support others in doing so.

Our digital services will give us better data and insight about customers helping us to make continuous improvements to services. Digital engagement will enrich our consultation with our customers on policy proposals and changes so that we can make better decisions.

This will have big implications for customers, councillors, our staff and our systems, involving changes to the types of jobs we will be doing, the services we provide, and the skills and technology we will need.

2. How will we know we have achieved our vision?

We will know we have made difference when we have genuinely changed the way our organisation, our residents and our partners feel about our digital offer: New and existing customers        

My preference is to interact with the Council digitally rather than any other way.

I can interact with the council anytime I want and using any device I choose.

It’s easy to find information about services I want to use and the council keeps me informed about changes and issues which matter to me.

The council’s online services are easy to use, reliable and secure. I have my own account and I only have to identify myself once.

I get a consistent online experience whichever of the council’s services I’m using.

I feel confident doing this, and can use my skills to do much more than interact with the Council.

I can access the internet for free in a supportive and reassuring environment.

There’s personalised support to help me on the pathway from absolute beginner to expert user of the internet.

Councillors 

I am confident that the people I represent are supported to access council services digitally 2

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  

I have a better understanding of people living in my ward and what services they use and value.

It’s easy for me to reach a lot of people online and meet their needs.

It’s easy for me to keep on top of council and ward business Increased use of social media and online contact with the people I represent means improved citizenship and involvement.

Staff and managers         

I fully understand the benefits of digital and actively support others in doing so As a lot of routine processes are automated, I can focus more of my time on the things that make the most difference to customers.

I’m a lot more productive as I can work flexibly and remotely, and it’s easier to collaborate with colleagues, partners and suppliers.

We have a better understanding of our customers which informs how we codesign and target our services.

Insight and foresight helps us to act quickly and either prevent problems or intervene early to improve outcomes.

We provide our customers with seamless end-to-end services, make the most of every contact to provide better service and to learn about our customers needs and expectations .

We provide consistent services more cost effectively and maximise income recovery.

We work more closely with other services to provide joined up services to customers.

We can gather and analyse a wide range of data to help us improve performance

Businesses, suppliers and partners    

We can interact with the council anytime we want and using any device.

The council works with us to provide joined up services to our mutual customers The council helps me to innovate and grow my business through provision of infrastructure support and skills development for us and potential customers Providing goods and services to the council is cost effective and straightforward because we can deal with them digitally from procurement right through to delivery and ongoing contract management.

Visitors to Newcastle  It’s easy to find the information I need and access services to get the most out of my visit to Newcastle.  When I visit the City Centre, I can access the internet (and key visitor information) for free using the Council’s sponsored Wi-Fi.

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