Dear Council Leader,

We are writing to you to ask for your support in tackling the growing injustices within the
housing association sector.

The ethos behind social housing associations was supposed to be about providing housing
as well as acting as a voice for the voiceless. Yet in recent years that ethos has been
undermined through an insipid culture change and growing pay inequality.

Housing associations own an increasing property portfolio reaching almost 3 million units at
the last count, with most of the growth in more valuable general needs housing. The gross
value of housing association properties is now approaching £1.5 billion.

Housing associations are consolidating with less than 5% of housing associations now
owning more than half of the entire sector’s stock. 95% of the sector’s stock is owned by just
332 of the 1,500 active housing associations that unsurprisingly employ most of the staff.

Turnover has continued to increase and surpluses (profits) have repeatedly hit record highs.
In 2017 the operating surplus across the sector was up 15.6% in 2016/17 to an impressive
£5.55 billion overall with operating margins of over 30%. Overall management costs fell by
7.3% and employment costs were down by 6.6%, falling to £3.37 billion, despite special
pension costs in the sector not expected to repeat in the short run. The numbers employed
in the sector also fell by 3,397 to 99,417. Much of this rise has been driven by non-social
housing activities which are becoming an ever larger part of association’s business strategy.

The sector has also had year on year inflation busting average pay increases for Chief
Executives for most of the last decade and a half and individual Chief Executives continued
to get inflation busting rises. For example Places for People’s David Cowans received an
inflation busting 10% pay rise to give him total payments amounting to £579,182, while
Clarion’s Keith Exford took home £376,199 a 15% rise on his previous salary. Sanctuary
Group’s David Bennett received a 5% rise to £356,277, while others like Jane Ashcroft of
Anchor Trust and David Montague of L&Q who both received a cut in total pay this year still
took home £351,899 and £344,000 respectively.

Earlier this year the Chartered Institute of Housing produced shocking evidence that housing
associations had been responsible for a net loss of social rented housing - 46,972 housing
association homes for social rent were lost between 2012 and 2017. The CIH say that most
of the losses were down to homes being converted from social rent to the much higher
‘affordable rent’1. This worry trend is in stark contrast to their founding social mission.

The sector continues to be financially healthy yet housing associations often plead
poverty to Unite members. Staff are expected to work harder for less pay and reduced
pension provision. They are put under ever increasing performance pressures and are
expected to be grateful that they have a job at all.

1
http://www.cih.org/news-article/display/vpathDCR/templatedata/cih/news-
article/data/More_than_150000_homes_for_social_rent_lost_in_just_five_years_new_analysis_reveals
Organisations across the sectors are undercutting each other in order win contracts to
provide services, while pressures from government policy, on rents and austerity are cited as
the reason. As a result many workers in social care and housing are facing sweeping cuts to
their pay and conditions, staffing levels are being cut and many experienced staff are being
lost. In many cases organisations are cutting wages in existing contracts long after funding
has been agreed. To successfully tackle the issues faced by clients with complex needs in
the social care field, cheap contracts and quick-fix solutions are not the answer.

Unite members also report facing an increasingly anti-union environment within the
sector and some associations have moved to derecognise unions.

Councillors should call for maximum pressure to be brought on associations to

provide full trade union rights for their staff and make this a central feature of any
funding provided to them.

The fact that independent housing associations are largely funded by the government means
that the solution rests in the political domain.

We are therefore writing to you to:

• Take a stand against the ‘race to the bottom’ in social care and housing and commit
to consult with service users, affected community groups and trade unions prior to
any cuts to funding.
• Encourage responsible employers, commissioners and trade bodies to sign up to a
charter to ensure better standards across the sector before it’s too late.
• Set clear pay and conditions criteria in any contracts with the social care and housing
sectors. The financial section that covers pay in every tender must reflect the actual
pay currently paid to workers and not a fantasy lower sum that the provider seeks to
pay in the future. It should be clear that any organisations undermining these terms
and conditions would be in breach of contract.
• Commit to no rise in rents for tenants while Chief Executives see excessive pay
increases.
• All housing and social care providers should be encouraged to recognise a trade
union and engage in collective bargaining with those trade unions.
• Ensure that your local council are not funding organisations that are cutting workers’
pay and conditions.