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Northern Ireland’s social housing partnerships: meeting housing need in difficult times

Northern Ireland’s social housing partnerships: meeting housing need in difficult times. Nick Acheson, University of Ulster Jenny Muir, Queen’s University Belfast Housing Studies Association conference, York 13 th - 15 th April 2011. Contents.

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Northern Ireland’s social housing partnerships: meeting housing need in difficult times

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  1. Northern Ireland’s social housing partnerships: meeting housing need in difficult times Nick Acheson, University of Ulster Jenny Muir, Queen’s University Belfast Housing Studies Association conference, York 13th - 15th April 2011

  2. Contents • The governance of service delivery partnerships: • What is a ‘service delivery partnership’? • Third sector organisations in service delivery partnerships • Hybrid organisations: the example of housing associations • Case study: Supporting People in Northern Ireland • Case study: Social housing procurement in Northern Ireland • Housing associations as hybrid organisations within the case studies • Conclusions: defining the research • All part of an initial review of the field

  3. What is a service delivery partnership? • Focus is on the governance of delivering a complex service that requires a multi-agency and multi-sector model: the ‘welfare mix’ • Driven by state funding and defined need, not voluntary action (at the moment) • Has governance rather than government characteristics including: • Involvement of a wide range of range of actors and interests, including from civil society and the market • The state ‘steers’ rather than provides, including regulation - but is still an important player • Power is dispersed - no-one has sufficient power to achieve their aims without the co-operation of the others, leading to multi-agency strategies and partnership working, and the need for negotiation • No empowerment agenda – service users either unimportant or absent

  4. Third sector organisations in service delivery partnerships • Increased involvement in service delivery on behalf of the state, can be dated back to 1970s in case of housing associations; 1990 community care legislation also important • Has prompted ‘hybrid organisations’ in the third sector: • Hybrid organisations take on some of the attributes of agencies in other sectors whilst retaining their core characteristics (Billis, 2010) – can occur in public, private or third sectors e.g. CSR in private sector • Tension between third sector organisation (TSO) as service provider and TSO as advocate/ campaigner – both contractor and client advocate - again not new, but will this be exacerbated by the Big Society in England, as public sector cuts and promotion of voluntary action co-exist • UK devolution provides the opportunity for differences in policy and practice between jurisdictions – although has not so far

  5. Hybrid organisations: the example of housing associations • Third sector – ‘core characteristic:’ • HAs are independent, self-governing organisations with a social purpose, grounded in non-monetary values • Non-profit • Expansion into other areas of regeneration e.g. social economy • Public sector: • Weaver case – public body under 1998 Human Rights Act • Public body for EU procurement • In NI, public body for s.75 1998 NI Act equalities legislation • Regulation and inspection: accountability similar to public sector services? • Private sector: • Responses to lenders: business planning, quality awards etc (NPM) • Asset management emphasis in governance • Salaries and benefits for senior staff, some payment of board members

  6. Case study: Supporting People in Northern Ireland (1) • Revenue support to provide housing support services to vulnerable people – wide range of care groups • Introduced across the UK in 2003, cash-limited budget • Capital costs of a new scheme funded by housing associations through the Social Housing Development Programme • Supporting People revenue grants are supplemented from other sources if necessary e.g. to provide care services (Health & Social Care Trusts) • In Northern Ireland: • £64m budget in 2009-10, frozen for next 4 years plus £16.4m for new schemes, both ring-fenced, extra £27m to support hospital closures • 800 schemes, 110 providers, up to 40 contracts per provider – single biggest revenue source for third sector organisations • Negotiated not tendered contracts

  7. Case study: Supporting People in Northern Ireland (2) • Governance: • Policy - Department for Social Development (housing); Department of Health, Social Service and Public Safety (health & social services); Department of Justice (probation service) • Administration and regulation – Northern Ireland Housing Executive • Commissioning Body – NIHE, Regional Health & Social Care Board (DHSSPS), Health and Social Care Trusts, DSD, DHSSPS, Probation Board, Regulation & Quality Improvement Authority (regulator of care homes) • Four Area Supporting People partnerships to identify local need • ‘Inclusive Forum’ – for service users and providers to identify need • Committee Representing the Interests of Supporting People Providers (CRISSP) – support organisations plus the NI Federation of Housing Associations – can make representation to the commissioning body but has no right to be heard as it’s a contract-based system

  8. Case study: Supporting People in Northern Ireland (3) - review • The service delivery partnership is extremely complex and ought to disadvantage providers due to the detail regulatory regime and the lack of ‘rights’ within the client/ contractor framework • However , a number of factors appear to make the partnership work: • Stability: Has existed since 2003 with development work previously, no political pressure to change the structure • Political consensus on resources: ring-fenced budget retained (although frozen) plus extra for new schemes and Bamford Review • Trust/ power balance 1: we suspect ‘reciprocal power of exit’ – with regulation by the Housing Executive being tempered by appreciation of specialist knowledge especially in case of larger providers • Trust/ power balance 2: regulation does not include interference with governance of providers nor pressure for structural change (as far as we can tell at this stage) • Trust/ power balance 3: Negotiated contracts

  9. Case study: social housing procurement in NI (1) • Procurement Strategy introduced in 2008 by the regulator (Dept. of Social Development) in response to: • UK-wide focus on efficiency in construction e.g. Egan 1998. • UK-wide public sector efficiency agenda (Gershon, 2004) • NI’s own public procurement policy (2002), response to above and includes bodies funded 50% or more by the state • Concern about efficiency in the HA sector – very little working together on procurement voluntarily, no mergers or groups structures emerging • Developments in social housing procurement elsewhere in the UK • Strategy includes: • All HAs must be in a procurement group to bid for development funds – four groups were initially formed, 6 – 10 HAs in each • Groups to develop framework agreements, initially to procure new social housing but hopefully later for capital works and other purchasing

  10. Case study: social housing procurement in NI (2) • Governance: • Policy – Department for Social Development (housing), Department of Finance and Personnel Central Procurement Directorate (procurement); influenced by the Housing Executive • Administration of the Social Housing Development Programme – Northern Ireland Housing Executive decides on package of schemes put forward by each procurement group, assesses each for VFM, monitors programme (£157m, 1838 units 2009-10) • Regulation – housing associations regulated individually by DSD; but no formal inspection process for procurement groups. Procurement Strategy includes commitment to monitoring and evaluation • Provider representation – through the Northern Ireland Federation of Housing Associations; plus individual procurement groups and HAs making representation to DSD and the Housing Executive • Needs assessment – Housing Executive

  11. Case study: social housing procurement in NI (3) - progress • Four procurement groups formed during 2009: • One has disbanded, member HAs in process of being accepted into other groups, DSD adamant that no HAs can develop without procurement group membership • Consultants’ framework developed by all 3 groups (architects etc) – these services may only be accessed via frameworks from 1st April 2011 • Contractors’ (builders) frameworks on hold due to lack of work, HAs still tendering individually • Two annual bidding rounds have now been managed – added complexity due to some HAs being suspended from development for poor inspection reports • HAs still managing scheme development separately • No progress on procurement for capital works or other purchasing although there are ad hoc joint purchasing arrangements between HAs • KPIs not yet developed for monitoring and evaluation

  12. Case study: social housing procurement in NI (4) - review • There have still been very few amalgamations of HAs: 2 mergers although some other partnerships under discussion • The service delivery partnership is relatively simple but a number of factors are causing challenges: • Stability: the structure is new and has been difficult to establish. Its permanence is under question as the Minister has made it clear he would prefer approx. 10 large HAs i.e. mergers • Power imbalance: The partnership is dominated by the public sector; HAs are the only TSOs and the interests of the private sector (lenders and contractors) are not significant • Trust/ power imbalance 1: between housing associations • Trust/ power imbalance 2: between HAs and the Minister/ DSD • Trust/ power imbalance 3: many aspects of the partnership are heavily regulated and prescribed – but procurement groups not inspected

  13. Housing associations as hybrid organisations within the case studies • Supporting People: • HAs are contractors, in some cases housing development, management and support services • In others, support services ‘sub-contracted’ with other TSOs via a Joint Management Agreement – HA becomes the client • But HAs still seen to be operating as value-based TSOs by their partners – hybridity appears not to be a problem (to be tested) • Procurement groups: • HAs are the most strongly hybrid organisation in the service delivery field and also the only TSO • Problems appear to be arising because HAs are being treated as public bodies (scoping interview) rather than independent, value-driven organisations e.g. pressure for mergers • The absence of the private sector from the partnership means there is no focus on the need for HA independence for lending credibility

  14. Conclusions: defining the research • How might we ‘stress test’ the governance of service delivery partnerships, given that over the next few years they will be facing: • Less public money in the system • Political demands for TSOs to do more with less as part of the Big Society (at least in England) • Potentially greater impact of devolution in response to Coalition policies • We hypothesise that hybridity in partner organisations only becomes a problem if their values and core identity are misunderstood by other partnership members • Key factors for the ‘stress test’ may include: • Power/ trust dynamic • Shaping of the governance ‘rules’ by norms and values of key actors • Changing nature of organisations • Interpretation of ‘need’ for the service

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