YHN Board non confidential pack 2 February 2016

Board Tuesday 2 February 2016 at 5.00pm

Meeting to be held at YHN House, Newcastle upon Tyne. Contact: Jill Davison (telephone: 0191 278 8624 email: [email protected])

AGENDA

Introduction items Timing Page No.

1 Reminder to switch off mobile phones 5.00

2 Apologies for absence

3 Declarations of Interest

Items for Decision / Discussion

4 Business Strategy 5.00 1

5 Digital by Choice 5.20 30

6 Board Learning and Development Plan 5.35 47

Items for approval

7 Minutes of 8 December 2015 5.50 59

Items for Information

8i Universal Credit update 63

8ii Stonewall 72

8iii Delegated Decisions 74

8iv Board Forward Plan 76

8v Committee minutes:

Service and Strategy Delivery Committee 1 December 2015

77

To exclude the press and public during discussion of agenda item 9-13 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Protect not for publication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 approval

9 Confidential minutes 8 December 2015 5.50 82

10 Finance and Performance Quarter 3 5.55 86

11 Budget 2016/17 principles 6.15 104

12 Remuneration Committee report 6.35 Supplemental

report

Items for information

13 Byker Community Trust update 6.55 112

Date of next meeting 15 March 2016 5pm YHN House

Board 2 February 2016

YHN Business Strategy 2016-2020

Report by Director of Corporate Services

For Decision

1 Background

1.1

This report provides Board with the draft Business Strategy for YHN (2016-2020) which has been the subject of a Time Limited Committee (TLC). The Business Strategy is the foundation document for the annual Delivery Plan and for all key corporate strategies and financial plans. Its main audience is the Board and the YHN workforce, though of course it also needs to be meaningful to our shareholder, our service users, partners and the wider sector.

As there are multiple factors affecting our organisation, many of which are difficult to predict, the Business Strategy is designed to provide a steer to us whatever changes lie ahead. It is not intended to specify tightly all of our actions for its life, these will be contained in the annual Delivery Plans, but to be specific enough to help with decisions and courses of action when necessary.

1.2 In June, Board decided to set up a TLC to oversee the development of the strategy, it has met four times; firstly to take stock of where we are now, secondly to consider scenarios in the future to help define the ‘must haves’ or core business then later to look at the statement of purpose and more detail on the content of the strategy.

The committee explored YHN’s purpose and vision and along with a proposal around the development of service objectives (what we will do) and cross-cutting objectives (how we will do things or principles that will be applied to all of our activity).

1.3 Based on material presented to the committee, members concluded that:

A statement of purpose needs to be descriptive as well as aspirational, besides being more memorable than our current purpose.

Our vision needs to be set in the future and provide a clear steer at times when strategic decisions are needed. The notion of ‘making the money deliver’ should be retained.

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Being clear about service objectives would help all stakeholders, but staff in particular, understand their role and where priorities lie.

The development of cross-cutting objectives, which is something new for our strategy, has the potential to provide a framework for all of our activity, keeping the business viable and the services to the standard required by NCC.

A single page summary, preferably diagrammatic, would be an invaluable reference document.

1.4 Following work with the committee, in November 2015 Board agreed the purpose statement, vision, service objectives and cross cutting objectives presented. These form the basis of the Business Strategy (appendix one) and remain largely unchanged except the following:

Service objective three has been amended to reflect the Board feedback about improving the health and wellbeing of tenants, and

Two of the seven cross cutting objectives presented to Board in November (achieve efficiency at every level and direct resources) have been merged together.

2 Developing the Strategy

2.1 Since Board approved the purpose, vision and objectives, officers have worked via a series of workshops to develop the content, using a range of information, including:

Information about our operating environment and any changes expected

Known information about financial pressures we face

Expectations about performance from our landlords

Tenant priority areas for service delivery, and

Proposals about what we will need to do under the cross cutting objectives in order to deliver against the service objectives given the above.

2.2 When tenants were consulted about the purpose, vision and objectives the direction of travel was endorsed, however they stressed the need to ensure that we don’t understate the challenges we face over the next few years. We have tried to reflect this feedback in the draft presented.

2.3 Consultation on the draft strategy has been carried out with Heads of Service, the Chair, members of the Board TLC and NCC Directors.

As a result some things previously listed as achievements are now more appropriately referred to as measures. Where there are measures we have sought to be more precise about our aspiration for 2020. In addition the text on traded services has been amended to reflect Board member feedback. Other individual queries have been responded to on a one to one basis.

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2.4 Board is recommended to approve or amend the Business Strategy.

3 The Business Implications

3.1 Purpose and Strategic Objectives:

The Business Strategy is intended to place us in as strong a position as possible for the future. It sets out a new set of strategic objectives and the principles we will work to in order to ensure that strategic objectives continue to be delivered despite changing and challenging circumstances.

3.2 Value for Money/Efficiencies:

Achieve efficiency at every level and direct resources to where they are needed the most is a cross-cutting principle for the new Business Strategy.

3.3 Financial Implications:

The Business Strategy aims to give us a solid foundation to plan for and respond to the financial implications of our current environment. Following approval of the Business Strategy, a Finance Strategy will developed to support and underpin the Business Strategy.

3.4 Resources (financial, property, technological or human):

The focus of a number of the cross-cutting objectives is a recognition that we will need to deliver our contracts with fewer resources. This will mean an increased emphasis on technology in order to transform service delivery and the need to optimise resources through trade.

3.5 Impact on Services/Performance:

The Business Strategy is designed to protect performance despite pressure on finance and other changes to the environment.

3.6 Outcomes for Tenants/Leaseholders:

The proposed purpose and vision are designed to enshrine high quality levels of service.

3.7 Risk (reputation, relationship):

There is a risk that if we do not continue to deal with our challenges in a planned, robust and timely manner we will create greater problems in the medium and long term.

3.8 Environmental:

Improving the neighbourhoods we manage is integral to service objective one in the Strategy.

3.9 Legal:

The Business Strategy sets out a framework of principles that will guide our

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4 Conclusion and Recommendations

4.1 Board is recommended to Board is recommended to approve or amend the Business Strategy.

5 Implementation

5.1 The next steps include the following:

Produce a one page summary of the Business Strategy which will be circulated to Board before the end of March and published on the YHN website.

The Delivery Plan will be brought to the March meeting for decision. This is the annual plan to show whether or not the objectives of the Business Strategy are being met. This in turn will be monitored on a quarterly basis by Board.

Key strategies will be brought to Board for approval and their implementation will be monitored by Service and Strategy Delivery Committee.

A programme of training and awareness raisng amongst staff will be developed starting with a team brief which will be cascaded throughout the organisation.

Signpost key messages for tenants via Homes and People.

Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Louise Horsefield, Head of Business Strategy, telephone 0191 278 8720 or email [email protected]

business decisions over the next four years to ensure we continue to deliver contractual requirements for our landlords. It will also help us to work with our landlords to prepare for and respond to significant changes in housing and welfare legislation that are expected over the coming years.

3.10 Equality and Diversity and Community Cohesion:

The Business Strategy will support us to deliver equality of access to services for tenants. In particular, service objective three has been amended to reflect the Board feedback about improving the health and wellbeing of tenants and access to employment opportunities.

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YHN Business Strategy 2016-2020

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Our vision for 2020:

“We will be high performing, innovative and focussed on providing quality housing management and support services. We will make the money deliver across everything we do while continuing to create positive outcomes for our customers”

Our purpose “Delivering great services, enabling people to thrive in great communities, supporting a

great city”

YHN LIMITED

(Parent)

ASFALEIA LIMITED

(Subsidiary)

ABRI TRADING LIMITED

(Subsidiary)

Who are we? Your Homes Newcastle manages 30,000 tenancies – Council and Registered Providers – across the city. We help customers find and keep homes, improve the city’s housing stock and services and we enable our customers to sustain their tenancies by providing a range of specialist support services. In October 2015 we established a new group structure with two new subsidiaries, Asfaleia Limited charitable subsidiary and Abri Trading Limited which is our trading subsidiary. This new group structure enables us to operate in the most tax efficient way, make the best use of our financial resources and better reflects the breadth of activity we carry out. YHN Group structure:

What are we here to do?

In developing this strategy we have taken the opportunity to reflect on what our purpose is. Our ethos remains the same but our purpose has been re-defined:

Where do we want to get to by 2020?

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The road ahead The world we operate in has changed a lot since we were established in 2004. The economy is in recovery but the pressure to reduce public spending remains. Our parent organisation Newcastle City Council (NCC) has already lost £191 million as a result of government cuts and unfunded cost pressures like inflation and rising energy costs (£1,567 for every household in Newcastle). We anticipate that NCC will need to reduce costs by a further £100 million over the next three years. This pressure is compounded by the government requirement on social landlords to reduce social rents by 1% for each of the next four years. This will mean a reduction of income into the Housing Revenue Account (HRA) of £593m over the next 30 years. Welfare Reform and the introduction of Universal Credit pose a further threat to income from rent, and the Housing and Planning Act will bring significant changes to social housing. Planned changes include an extended Right to Buy, the end of lifetime tenancies and the sale of high value council housing. From April 2016 we have a new ten year management agreement with NCC. This enables us to plan for the future and gives us a great opportunity to continue to deliver NCC’s housing services. However, given the financial pressures NCC faces, the management fee we will receive has been reduced to reflect the reduced income into the HRA. This will mean we have to innovate and transform our organisation so we can continue to deliver our vision. More than ever before we will need to make sure the money delivers; spending money where the need is greatest and focusing on services where we know it will make the biggest difference. We must continue to build and strengthen our already excellent relationship with our key shareholder NCC, and work collaboratively with other partners to help the city achieve their key objectives in an incredibly challenging financial climate. We may need to make some difficult decisions along the way and be prepared to re-direct resources to ensure the best possible outcomes from the services that we provide on behalf of our landlords.

About this strategy The environment we operate in is constantly changing, so this strategy must be able to adapt to changes as they happen. It sets out where we want to be by 2020 based on what we know now. We will need to revisit our plans on a regular basis so they continue to reflect their environment. Every year we will publish an annual Delivery Plan which will set out how we plan to implement this strategy in the subsequent year.

Our 2016-2020 objectives

We have categorised these into service and cross cutting objectives.

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Our three service objectives are:

Keep the housing stock decent, and neighbourhoods clean and safe

Collect the rent and let properties efficiently

Promote health and wellbeing and support vulnerable people to enjoy independence

We will:

Use modern technology and innovation to challenge and redefine service delivery

Achieve efficiency at every level and direct resources to where they are needed most

Have high performing people who understand how to contribute to our purpose

Trade profitably to support core services

Work proactively with NCC and our other landlords

Maximise partnerships to improve services

What we need to do: our service objectives

This sets out what we need to do to ensure continued delivery of our core services and deliver our purpose. There is a particular focus on ensuring we are able to continue to comply with the conditions set out in the management agreements we hold with NCC, Leazes Homes and Byker Community Trust (BCT).

How we will work: our cross cutting objectives

We know we need to make some significant changes to the way we work. These six objectives will guide the way we do things over the next four years. They are fundamental to achieving our vision.

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We aim to be in the top quartile compared to our peers in the sector for the following:

Rent loss due to empty properties (voids) as a percentage of rent due

Amount spent on void reinstatement costs

Overall management cost per property managed

Rent collected as a percentage of rent due

Percentage of dwellings that are non-decent at the end of the year

Tenant satisfaction with overall housing services

Tenant satisfaction with neighbourhood as a place to live

We also aim to improve our performance in the following areas:

Year on year increase in the proportion of Your Homes Your Jobs placements and apprentices that progress into employment, education or training

Maintain current tenancy sustainment levels for vulnerable tenants receiving support

Growth in daily internet use among Council tenants above national trend every year

Year on year increase in the profit generated by Newcastle Furniture Services and Palatine Beds as reported to Abri Trading Limited Board

What our performance will look like in 2020 We have set out our ambition for each of our objectives in the following sections of this strategy. We want to improve our performance so we are one of the top performers in the sector across our key areas of business. We know that for some service areas achieving this ambition will be challenging. Here is a summary of our key performance measures for our Business Strategy. Our performance against these measures will be reported regularly to YHN Board.

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Housing stock and neighbourhoods will be well maintained, sustainable, desirable and continue to generate money for the HRA

Service Objective 1 - Keep the housing stock decent and the neighbourhoods clean and safe

We rely on the rent we collect to carry out repairs and maintenance and invest in the housing stock and maintain surrounding estates. Investment ensures stock is able to meet the needs of the population of Newcastle and is sustainable, desirable and can continue to generate money in the future. The 1% rent reduction represents a loss of income of £593m in the HRA over the next 30 years. This reduces the money available to develop new homes and to invest in maintaining and improving the properties and the estates that we manage. As well as our commitment to maintaining the Decent Homes Standard we need to ensure we continue to provide investment to meet our landlords’ statutory responsibilities, such as gas servicing, fire safety, lift refurbishment and other health and safety issues. We will need to continue to seek external funding to ensure we maximise the money which is available to invest in the stock. Tenants have told us that the condition and appearance of the estates surrounding their homes is very important to them. It plays a major role in creating sustainable and cohesive communities where people want to live. Tenants and prospective tenants, like all of us, want to live in clean and safe neighbourhoods.

Assumptions we have made Challenges we face

Repairs and Maintenance service delivered by NCC will continue beyond March 2016

Reducing fuel poverty will continue to be important to us

Land availability/contamination will mean fewer opportunities to build

Low demand for some property types, particularly high rise flats

Reduction in HRA budget (capital and revenue)

Lower rents will mean payback will be difficult on some new developments

Changing demand for stock

Potential increase in anti-social behaviour case-load due to current economic conditions

More limitations on Homes and Communities Agency (HCA) grant

Unknown impact of Housing and Planning Act changes (e.g. sale of high value voids)

Average SAP rating lower than other similar organisations

By 2020:

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We will achieve this by:

Implementing our Asset Management Plan

Using performance management, benchmarking and market testing to ensure that our repairs and maintenance service and estate services contracts, deliver quality customer focussed outcomes and value for money

Flexing our programme of planned works to respond to changing circumstances and priorities

Empowering residents to contribute to improving their local areas

Delivering a more streamlined and efficient response to dealing with anti-social behaviour

Recommending a capital programme to NCC on an annual basis. Outcomes we will achieve:

The homes we manage are maintained to decency standard

We will deliver against the priorities most important to tenants

We make it possible for people to enjoy where they live

The appearance and reputation of council housing is improved How we will measure success: We will work towards improving our performance so we are top quartile compared with similar organisations in the following areas:

Percentage of dwellings that are non-decent at the end of the year

Tenant satisfaction with their neighbourhood as a place to live

Average SAP rating of housing stock

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Service Objective 2 - Collect the rent and let properties efficiently

Welfare Reform represents the biggest shake up in welfare for over 60 years, changing the way in which benefits are allocated and administered. The introduction of a new ‘bedroom tax’ has already had a considerable impact. Many of the tenants who are under-occupying their homes have had to move to a smaller property or are waiting to do so because they can’t afford to stay. Universal Credit (UC) will bring further challenges. Unlike Housing Benefit, UC is paid directly to claimants who are then responsible for making their rent payments to their landlord. This is a huge change for us and tenants, as currently around 65% * of tenants have some or all of their rent paid directly through Housing Benefit. It is having a negative impact on rental collection from tenants that are now claiming UC, and is pushing more of them into financial hardship. It presents further challenges for many tenants who are financially excluded without access to bank accounts. We have taken sustained intensive action to counteract the impact of the changes but this will be more challenging as more tenants switch onto UC. Alongside this challenge, the housing needs of the local population are evolving and some of the stock is not sustainable or desirable in its current state. Demand for good quality family and older person’s accommodation is stable, but we will need to continue to seek creative and cost effective ways to align available stock with what people need and can afford. The housing market itself is complex in Newcastle due to the diverse nature of its stock and communities. Private sector housing in Newcastle accounts for approximately 69%* of all housing stock, this is made up of a combination of owner occupied, private rented, empty private sector housing and some specialist accommodation. With numbers of private rented properties in Newcastle higher than the national average there is a greater need for us to operate competitively to ensure social housing is a viable choice for renters. *Figures correct as of January 2016


The benefit cap will be lowered

UC will be introduced for other claimants

Discretionary Housing Payments will be used to support benefit cap cases

We will be successful in embedding a payment culture

We will continue to work as part of a regional partnership for letting homes

We will use data to understand markets, customer segments and

Backdated UC will be limited to one month

UC means rent will no longer be paid directly to landlords for the majority of working age claimants resulting in a substantial reduction in guaranteed income

High number of financially excluded tenants

Increased workloads as more intensive rent recovery work required

We will need new models for service delivery and may need to redirect

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By 2020: We will have sustained rent collection rates through the transition to Universal Credit and the majority of tenants will pay their rent in advance by direct debit. Through partnership working, the properties we manage will be sustainable and let quickly to customers who value the service we provide, leading to successful tenancies.

behaviours

We are already experiencing low demand issues with some property types in some parts of Newcastle

resources

Matching the housing stock with local demand

We currently perform worse than our peers in rent collection and letting homes


Implementing our Income Management Strategy

Promoting financial inclusion through the implementation of our Income Management Strategy

Implementing a revised void end to end process, which should reduce the amount of time a property is not available to let

Working with NCC to revise their Allocations Policy to allow flexibility to increase demand for less popular homes

Improving our marketing of our landlords’ properties to increase the audience reach and attract new markets particularly for difficult to let properties

Expanding the Tyne and Wear Homes Partnership to include other parts of the North East which will increase the housing options available and customer base

Outcomes we will achieve:

Rent collection is optimised to enable service provision

Tenants’ debt levels are minimised

The negative impacts of empty properties are diminished How we will measure success: We will work towards improving our performance so we are top quartile compared with similar organisations in the following areas:

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Rent lost due to empty (void) properties as a percentage of rent due

Amount spent on reinstatement of void properties

Rent collected as a percentage of rent due

Average re-let time

Tenancy turnover rate

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Service Objective 3 - Promote health and wellbeing and support vulnerable people to enjoy independence

We support vulnerable young people with complex needs and provide housing and telecare support services to older people. Additionally we provide tailored advice and support to anyone who is struggling to sustain their tenancy for a variety of reasons. Going forward, supporting people to enjoy independence in their homes and sustain their tenancy continues to be a vital part of our service offer despite the reduction and eventual withdrawal of NCC funding. In October 2015 we created a new charitable subsidiary, Asfaleia Limited which reflects our on-going commitment to this valuable work and also helps us to make more efficient use of the limited resources that are available. Demand for these services is likely to increase, but the continuing impact of welfare reform and reducing public health and social care budgets within the local authority and health service means that those services will face significant cost pressures. The challenge will be how to continue to provide efficient and effective support to those who need help to sustain their tenancies. A reduced management fee means that it is likely that we will have to prioritise the clients who need our help the most rather than providing a universal service to everyone. Our Telecare service, Ostara, faces the specific challenge of operating without any NCC funding. Our first priority will be to convert the 2,800 existing NCC funded users of the Telecare service into paying customers. 1,600 other customers already pay for the service but if the majority of funded users opt out then the service will operate at a loss. This could not be sustained long term. Further challenges we face are high levels of poor health and wellbeing, closely linked with unemployment levels that over the years continue to be far higher than the national average. Unfortunately many tenants living in the homes we manage are affected which can lead to difficulties in sustaining tenancies. We have a vital role to play in promoting both health and wellbeing and employment and will need to continue to work closely with local partners to develop effective solutions.


HRA to fund some Advice and Support/Young people Service activity

NCC to cease funding for Telecare (Ostara)

Less locally provided debt and benefit advice available to tenants

Newcastle continues to have lower levels of employment and educational achievement

Tenants experience inequality in health outcomes compared with other residents in Newcastle

Fuel poverty is an issue for some

Increase in termination of tenancies as tenants cannot sustain tenancy without support.

Decrease in take up of tenancies if support services not in place.

Fewer older people living independently without support services i.e. telecare.

Increase in levels of social isolation amongst older people

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By 2020: We will have improved the health and wellbeing of tenants and tenancy sustainment levels through the provision of efficient and cost effective support services for vulnerable people who need it the most.

tenants and this impacts on their physical and mental health

We will achieve this by

Implementing our new Telecare (Ostara) marketing plan to increase our client base

Developing a more streamlined support offer for vulnerable tenants, that uses technology to improve efficiency

Implementing the actions resulting from our Health and Housing support review

Continuing to strengthen our partnerships with Health, Social Care and Public Health as this enables us to provide a holistic service to customers who have additional health and wellbeing requirements

Considering support and care requirements as part of our pre-tenancy service offer

Working with our Tyne and Wear Homes partners to make better use of adapted and adaptable stock across the region

Collaborating with local health partners to produce a YHN Health and Wellbeing plan aimed at improving health outcomes for tenants

Expanding our employability programme to increase the number of employment and training opportunities we are able to offer tenants

Strengthening our organisational approach to safeguarding and domestic violence by improving our policies and processes and collaborating with other partners to ensure a holistic response

Improving tenant financial stability to enable people to stay in their homes and meet their rent obligations

Developing a programme of community action events to help reduce the impact of social isolation

Implementing actions required to achieve our ambition that all housing stock achieves an Energy Performance Certificate (EPC) rating of E or above by 2020


The health and well-being of individuals is enhanced

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Tenants are supported to become more self-sufficient

Support for the most vulnerable tenants is sustained

Unemployed tenants are more likely to secure and sustain employment How we will measure success:

Maintain current tenancy sustainment levels for vulnerable tenants receiving support

Revenue generated by Telecare (Ostara) service to be at least equal to expenditure by 2018

Year on year increase in the proportion of Your Homes Your Jobs placements and apprentices that move onto education, employment or training

Using HACT methodology to develop a baseline snapshot for health and wellbeing

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By 2020:

Our cross cutting objectives- the way we will do things

We will: use modern technology and innovation to challenge and redefine service delivery The importance of technology to YHN and NCC has grown significantly in recent years and plays an ever increasing role in the delivery of our customer services. The broad adoption of online services by the general public, together with greater availability and lower price of mobile devices and process automation solutions, present better opportunities to improve customer service whilst realising efficiencies at a time when we, like all public sector organisations, need to make significant financial savings. The move towards a “digital first” approach by Central Government (for example, requiring claims for Universal Credit to be made online) makes digital engagement a necessity for most of our customers. This presents us with a moral and practical need to support digitally excluded customers in acquiring the access and skills they need to survive and thrive in an increasingly digital world.


Our work in this area will continue to be guided by Newcastle City Council’s “Digital By Choice” strategy

Wherever possible, we will work collaboratively with NCC in the design and delivery of digital services

We need to invest in modern technology in years one and two so that we realise efficiencies further down the line

A continued upward trend in the number of people accessing the internet

Council tenants in Newcastle are among the most digitally excluded people in the UK, so we will need to do more than most social housing providers to support tenants in getting affordable access to the internet and in developing the skills they will need to use digital services

There is growing demand within the business for new IT solutions to address a wide range of service delivery and process issues

We have reduced the digital inclusion gap between tenants and the rest of the UK.

Developed well-used digital service offerings for all common transactions with our customers

Made substantial savings by making better use of modern technology across YHN, while maintaining our focus on customer service

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Implementing our ‘Digital by Choice’ Strategy

Providing more digital services, so customers can self-serve and face to face service provision becomes the exception and is targeted at those that need it the most

Providing affordable access to the internet for tenants and ensuring they know how to go online so more tenants access digital services

Reducing costs of delivering services by adapting new systems, such as mobile working and workforce scheduling, that transform how we work

Improving or replacing key IT systems to maximise productivity


More tenants are digitally included

Transactional and operational costs are reduced enabling greater productivity

Significant increase in the number of transactions completed online

Resources are freed up for those who still need personal contact and support

How we will measure success:

Growth in daily internet use among Council tenants above national trend every year

The proportion of transactions completed online more than trebled

Our technology-based service improvements deliver net savings within three years on average

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We will: achieve efficiency at every level and redirect resources to where they are needed the most

We have a vital role to play in ensuring that we make the money deliver. We need to make sure our house is in order to ensure maximum value for the Council and our other landlords. In particular:

We are now a service provider organisation to multiple clients;

Our main client (NCC) through the (HRA), is now self-financing and so needs to demonstrate financial sustainability;

There is a new relationship with NCC and increased scrutiny of our management fee;

Our clients and their tenants are coming under financial pressure from Welfare Reforms and cuts to Local Authority budgets; and

The HCA is exerting pressure on housing organisations to demonstrate Value for Money.

Due to the financial pressures our clients and their tenants face we will have to change the way we deliver our services. NCC has confirmed that our management fee will be reduced by 5% per year over the next three years. This means we need to save money on all areas of expenditure across the organisation. This will mean spending less on the things we need to run the organisation, be it paper, power or people. We have a good track record of finding the best price for things we buy and this will need to continue. Staffing is our biggest expenditure so we will need to transform our organisation in order to reduce our costs. Implementing new technology will lead to efficiencies as will process improvement. Some services will face resource pressures over the next four years as we try to balance demand for services with cost savings. An important part of our approach will be to anticipate and identify these resource pressures so that we can redirect our resources. Our annual business and financial planning process will be used to identify areas where resource pressures are expected and enable managers to highlight areas where directing resources might be required.


Technology and process redesign will be key to achieving efficiencies. They may require upfront investment but will realise a cost saving by 2019

Year on year reduction in management fee. This equates to 15% reduction in the fee over the next three years

We will need to cut costs across all areas of expenditure

Services that are able to save more than 15% by 2019 will contribute those additional savings to help services with resource pressures

1% reduction in rent reducing resources for the Housing Revenue Account. This in turn impacts our management fee and resources we oversee including repairs and the housing investment programme

Impact of welfare reform on money into the HRA

Right sizing services across our business will bring uncertainty for staff

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By 2020:

We will have a more streamlined organisation led by a lean management structure. All of our teams will have eliminated wasted capacity, and are supported by fit for purpose systems and processes that drive the lowest cost per unit for our landlords.


Implementing the Value for Money Strategy

Spending less on all of the things we buy

Reducing the cost of delivering services by adapting new systems, such as mobile working and workforce scheduling, that transform how we work

Eliminating waste and removing complexity through the use of improved, simplified processes

Restructuring across the organisation to right-size teams following system and/or process transformation

Considering if some services could be delivered more efficiently through partnership working, shared purchasing arrangements or outsourcing


Teams that are optimised to eliminate wasted capacity

A lean management structure

Fit for purpose systems and processes that drive the lowest cost per unit for our landlords

How we will measure success: We will work towards improving our performance so we are top quartile compared with similar organisations in the following areas:


Tenant satisfaction with overall housing services provided by YHN

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By 2020: Our people will demonstrate our values in all that they do, they will have adapted well to organisational change and are motivated to succeed, this will be demonstrated through both individual and our organisational performance.

We will: have high performing people all contributing towards our organisational goals In a financially challenging and changing environment, high performing people all positively contributing towards our organisational goals will be the key to our ongoing success. This will not be an easy task, particularly as we will need to reduce in numbers and restructure over the life of this strategy. We know that motivation and morale will be affected as our people are faced with considerable change. We will have to work hard to manage this. Despite this each and every one of us has to be committed to maximising resources so that we can meet our contractual obligations and demonstrate exceptional value for money to our clients particularly as the wage bill remains our highest cost. To achieve this, high performing people will need the skills to balance conflicting priorities. We need to ensure that all of our staff are clear about the focus of our business and their role in delivering this Business Strategy. We also need flexibility to utilise the varied skills of our people and place them where their skills are needed to contribute to delivery of projects in other parts of our business. Maximising productivity through effective engagement, management of performance and absence will continue to be a key focus of our people management approach.


There will be a learning and development budget but we will need to reduce costs

Operational HR and Organisational Development (OD) will continue to be provided by NCC

Achieving our vision with a reduced number of employees

Dealing with considerable change and managing any drop in motivation and morale and higher levels of anxiety resulting from restructures

Sickness absence is higher than in other similar organisations


Implementing a new People Strategy to support us in managing the transformation of our organisation, supporting everyone to understand and deliver their role

Effective management of the HR and OD Service Contract with NCC to ensure we have provision that meets the needs of our business

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Developing new organisational values to reflect the new People Strategy and to help everyone understand the ‘YHN way’ of doing things

Sharing skills across the organisation better so that we can make more efficient use of the skills and knowledge of our staff

Developing and delivering a development programme for YHN managers to equip them for the future


YHN remains a great place to work

We attract and retain high performing staff and achieve high levels of staff engagement

People have been supported through a period of significant change by effective leaders

A new cultural ‘norm’ has been established following transformation work How we will measure success:

Increase in engagement levels

Levels of sickness absence comparable with top quartile performers in the sector

Reduction in number of employee relations cases reported and investigated

Tenant satisfaction with overall housing services is maintained in top quartile compared with similar organisations

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20

By 2020: We will have an efficient and thriving furniture service concentrated on higher profit margin business with major landlords and local authorities. It generates significant surpluses before gift aid to Asfaleia Limited. Our Palatine Beds business will continue to demonstrate clear social value by maintaining its levels of supported employment whilst breaking even after corporate overheads.

We will: trade profitably to support delivery of services to tenants

Trading profitably provides a material cross subsidy for our ALMO services. The income helps protect the services that benefit tenants. Our trading subsidiary, Abri Trading Limited, has two commercial services: Newcastle Furniture Service (NFS) and Palatine Beds. For NFS the trade within Abri is for any works carried out, that are outside of Newcastle City. NFS provides both sale of goods and furniture rental for landlords and local authorities. Palatine Beds is a supported employer, whereby more than 50% of staff have a disability. They manufacture and sell mattresses predominantly to other businesses but also have a retail outlet that sells to the public. In order to increase our trading activity we need to develop our commerciality and become much more business orientated. To do this we need to improve the commercial skills of our board, our senior management team and those involved in the direct day-to-day management of our trading businesses. By doing so we are confident that we will be better placed to expand our market share through the successful pursuit of new contracts and in turn increase our profits and investment back into services to tenants.


Our trading activity will not put our core services and performance at risk and vice versa

Resources will be directed to profitable contracts which all meet an appropriate level of return

We will reduce costs through improved systems, processes and structures

We will maintain our current level of supported employment at 25 protected FTE positions

The growing reliance to increase profits to cross subsidise in the face of a reducing management fee.

The potential impact on the lower benefit cap on demand for furniture packs

The possible complete withdrawal of Work Choice funding for supported employment within Palatine from October 2017

Competitive market for retail (1907 brand)


Implementing the business plan and meeting the identified growth targets for Abri

Trading Limited

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21

Ensuring we have a simple procurement route for interested purchasing

organisations

Avoiding contracts with small or poor profit margins

Increasing the rate at which we convert interest from organisations into contracts

Ensuring that our IT systems are fit for purpose and reducing manual intervention and reduce resource requirements


Income levels are optimised to enable service provision

Palatine Beds maintains number of supported employees How we will measure success:

Year on year increase in the profit generated by Newcastle Furniture Services and Palatine Beds as reported to Abri Trading Limited Board

Minimum number of supported employees equals 25 FTE’s.

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22

By 2020: We will demonstrate success across all our service areas with all clients and will have retained all current contracts. We will enjoy a productive and collaborative relationship with our key shareholder Newcastle City Council whereby our recommendations are agreed, based on earned trust.

We will: work pro-actively with Newcastle City Council and our other clients

NCC is our sole shareholder and the Management Agreement between NCC and YHN covers the vast majority of our activity. NCC is the strategic decision-maker with regard to the HRA. A successful relationship with NCC, one in which our contractual requirements are met or exceeded, not only means that we earn the management fee, but also sets us up to provide high quality housing services to their tenants. Our objectives help the City Council achieve theirs. We work pro-actively with NCC on the delivery of our management agreement for their homes. We do this through a framework of meetings and sharing of information about our performance. Openness and communication is vital. We also support NCC to deliver against their objectives through collaborative working across other service areas. Customer service in all its forms, but especially the move to Digital by Choice, will be an important focus for us over the next few years. We achieve more working together than we can separately, and efficiencies can be realised this way. Relationships with Leazes Homes and Byker Community Trust (BCT) are also extremely important to us. We have recently extended our Management Agreement with Leazes Homes to 2018, whilst 2016 will see a change to our working relationship with BCT, as by the end of the year we will be providing fewer services for the Trust. Services to their tenants also need to be delivered well to maintain these contracts and the respective income.


Management Agreement with NCC until 2026

Management Agreement with Leazes Homes until 2018

Byker Community Trust continue to purchase some services from YHN

- NCC and Leazes Homes will continue

to be under extreme financial pressure for the lifetime of this strategy


Aligning our Business Strategy and Business Plan with NCC objectives

Delivering against our contract key performance indicators (KPIs) for our landlord

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23

Producing timely and accurate reports on our performance for our landlords

Communicating with our landlords through an agreed framework of meetings

Working with NCC to deliver the Digital Newcastle programme to increase internet access and online service take up

Working with NCC to review customer service provision

Working with NCC to review service provision for financial inclusion

Develop a new approach to monitoring satisfaction with the services we provide


Tenants benefit from Key Performance Indicators (KPIs) being met

Our income source is secured through our performance levels

Problems are resolved without unnecessary cost or upheaval

Savings and improvements to services are delivered through joint working

How we will measure success:

Delivery of agreed KPIs for NCC, Leazes Homes and Byker Community Trust

Maintain landlord satisfaction with our performance against KPIs

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24

By 2020: We will be working differently with tenants and partners to make sure that service quality levels remain high despite challenging financial environments

We will: maximise partnerships to improve and maintain services We have a variety of partnerships at YHN across the majority of our services with a range of objectives and working arrangements, although we have not really used them as a tool to reduce costs and continue delivery of essential services. As resources become even tighter we will need to be far more proactive in seeking out opportunities to work with others if we are to ensure that services valued by tenants can continue. As a minimum we should improve our relationships within social housing and other sectors to learn from others and develop our understanding of what other organisations can offer. In putting the customer first, we need to be open to new working arrangements, shared projects, reciprocal service offers and seek to eradicate duplication and/or pool resources wherever possible.

It is also vital that we continue to work closely with tenants so that they can help us to improve services. As our customers they have the best insight into the services we deliver. Focusing on understanding their use and experience of our services can give us the insight we need to make our services better.


Our colleagues in social housing and in other sectors will be experiencing similar financial challenges

Most of our services are not unique and exist in other organisations

Some of our services may be delivered to a better standard by other organisations

There is scope to transform some of our service delivery through partnership working

We have a culture of doing things ourselves rather than working with others

Our relationships with colleagues in social housing and in other sectors need to be improved

Ensuring we focus on realising as much value as possible from partnerships rather than monitoring the number of interactions with others

There are many definitions of partnerships

Engaging with a wider range of tenants and developing a deeper understanding of how they experience our services


Developing a framework of networks that allow us to improve our relationships with colleagues in social housing and in other sectors. This framework will cover all tiers of the organisation

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25

Expanding the Tyne and Wear Homes Partnership to other parts of the region to increase economies of scale

Considering commissioning or working in partnership for new areas of work where expertise already exists elsewhere

Consider options for partnership, shared purchasing or outsourcing for delivery of non-core services as part of service reviews

Focusing on partnerships that are clearly aligned with our objectives

Revise our approach to tenant involvement to ensure that we focus on the issues most important to tenants and to ensure we constantly expand and refresh the tenants we engage with


Better relationships with other providers will provide opportunities which benefit service users

More efficient delivery models from making use of expertise rather than trying to do everything ourselves

Tenants are confident that their views have influenced decision making How we will measure success: We will work towards improving our performance so we are top quartile compared with similar organisations in the following areas:

Tenant satisfaction with overall housing services provided by YHN


Tenant satisfaction that YHN listens to their views and acts on them

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Digital by Choice

Report by Director of Tenancy Services and Assistant Director: Customers, Culture and Skills, Newcastle City Council

For Decision

1. Background Information

1.1 In March 2015 Board received a report setting out our proposals for how YHN should deliver excellent customer service in the future. Board agreed four principles that YHN will adhere to, they are

1. A commitment to alignment with NCC’s Digital by Choice programme in the long term, recognising the way that people increasingly expect, and are expected to, access services, and the efficiency gains that may be achieved over time.

2. A recognition that the demographic of our customer base is such that the move towards digitally accessed services needs to be enabling and supportive.

3. A reassurance to all of our stakeholders that despite a shift to digital access, customer service remains key to the way we do business, no matter what role or function in the business, no matter who the customer is.

4. An acceptance that some people will always need face to face contact.

1.2 Board received a further report in June 2015 when the Digital by Choice programme for 2015/16 was developed.

That report provided Board with a summary of current actions, all of which are now complete:

Free Wi-Fi in public buildings

Free Wi-Fi in communal areas in sheltered schemes, YHN’s young people’s accommodation and some tower blocks

Skills training for Council and YHN front-line staff

Improvements in digital payments and removal of cashiering from 27 November

The removal of cashiering does not appear to have had any negative impact on rent collection - in fact, collection rates are better than this time last year. This follows a concerted campaign by YHN Income staff in advance of the change to provide information and increase the number of tenants paying by direct debit, which is the lowest cost and most stable payment option.

During September, October and November, take up increased by 837 to a

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total of 8,007 paying by direct debit. This represents 26% of customers who have something to pay – not far below the national average of 33%.

1.3 An earlier series of reports on Tenant Broadband had established an aspiration to provide “affordable (and ideally free) basic internet to all tenants”, and an accompanying action plan of which the provision of free communal Wi-Fi highlighted above was a medium-term deliverable.

The outstanding actions from the Tenant Broadband plan have been combined with those arising from the two more recent reports and appended to this report as Appendix A, along with a progress update, providing a holistic view of all planned work relating to Digital By Choice.

2. Digital Newcastle: Council priorities and joint working

2.1 The Council’s vision for Digital By Choice is to have “excellent digital services which are so easy to use that they are naturally the way people choose to engage with us”.

Key elements of the Council’s work in this area include:

2.2 Digital First

The Council has agreed its approach to strengthening its digital platform, and is building on its existing Customer Relations Management system (formally known as Lagan) to develop Council wide streamlined digital systems.

Known internally as ‘Digital First’, there is now a project team in place and a work programme is being developed using agile principles. The team, led by YHN and Council colleagues, is planning the delivery of its first project.

2.3 Go Digital Newcastle

The People’s Network (free public use PCs and internet access) has been refreshed across all libraries and Customer Service Centres. Free Wi-Fi has been installed in all public buildings (and communal areas in YHN managed blocks), and the free outdoor Wi-Fi service is on track for full completion in March 2016. WI-FI provision in the Civic centre has also been improved by ICT Newcastle.

2.4 Digital Payments

The cashiering service was removed from all centres on 27 November. There has been little negative reaction to this so far, although the December- January period is usually quieter in terms of related customer activity. The main issue has finding the most appropriate replacement method for the Council to make cash payments to vulnerable customers or their Appointees (a person approved to look after the finances of someone who is unable to do so for themselves).

2.5 Community Hubs

Another project in the Digital Newcastle programme is the development of Community Hubs. Originally arising from 2015/16 budget proposals, subsequent decisions about the future of face to face service provision; outcomes from the review of YHN by the Council; and a range of Council budget proposals for 2016/17 require us to consider again what we want from the concept, and how we drive it forward.

Community Hubs have the potential to be the key entry point to a

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coordinated, targeted and consistent information, advice and referral system cross the city. They could be the first point of help for people as the established ‘welfare state’ offer ceases to provide a universal safety net, and becomes a tightly targeted service.

Developing Community Hubs is not about trying to protect a reduced version of our existing face to face services (Customer services, YHN services, Library and Information services for example). We have instead to ensure that we provide targeted provision to those who most need it, in partnership with other agencies. Our universal offers will have to be based around self-service and digital offers. Digital by Choice is therefore key to delivering our community hubs offer and a new face to face offer.

3. Digital By Choice at YHN

3.1 Board has made a commitment to align to the Council’s “Digital By Choice” Programme “in the long term”. In order to make the most of the Council’s investment in digital technology, that will still mean YHN playing a full part in the development of online services.

YHN needs to build new online services at the same pace as the Council, while providing an enhanced level of support for longer to customers who need it. If we were to delay this work, the economies of scale to be gained from joint development would be lost.

YHN has therefore worked closely with the Council to align relevant work programmes, establishing joint teams and projects where applicable.

YHN has established a “Digital Services” team within ICT, which is responsible for leading on the delivery of all actions in this strategy.

3.2 Strategic Framework

This report aims to draw together new and existing workstreams to create a coherent “Digital By Choice” strategy, illustrated by the diagram below.

These five elements are described in more detail below, and the related actions and progress to date are set out in Appendix A.

3.3 Partnership

Our approach to Digital By Choice goes beyond co-operation, and seeks

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wherever possible jointly to develop shared services and processes which will provide customers with a joined-up experience when interacting online with the Council and YHN.

YHN is represented by the Head of IT on the Council’s Digital Delivery Group, and by appropriate staff in all relevant workstreams.

In addition to our work with the Council, both organisations are collaborating with Northumberland County Council on the development of online services. We are also maintaining our conversations with both universities in the city, and are funding a PhD at Northumbria University researching digital inclusion and focusing on our tenant internet access initiatives.

3.4 Services

Excellent services are at the heart of the Council’s vision, and they have committed significant resource to the development of improved services through the “Digital First” programme, which will start to deliver new internal and external processes this month and is funded for two years.

YHN and the Council will be using the same ICT platform to develop new services, reducing duplication and maximising sharing opportunities. Where appropriate, staff from both organisations will work as a single team.

Both the Council and YHN have adopted a flexible, agile approach to the development of these services which will allow the programme to respond quickly to emerging priorities and changes in customer behaviour and demands.

This work follows on from considerable progress already made in getting the Council’s “Top 25 transactions” and YHN’s “Top 7 themes” online.

Improvements for YHN customers that are complete, or should be done by the end of March include:

Better online payments

Online requesting of door entry fobs

Online home insurance applications and claims

Online reporting and monitoring of ASB cases

Bids for properties using the YHN App

General upgrade of the YHN App

YHN will also replace its current, dated website with a modern, mobile-friendly one by the end of March.

Services will need to be accessible to all, and assisted digital routes will be needed so no one is left behind. Offline assistance will continue to be available to those who need it.

3.5 Access

NCC tenants are among the most digitally excluded groups in the UK (in 2014, 30% of tenants had no access to the internet, compared to 15% of UK adults, and fewer than half were daily users, compared to two thirds of UK adults). Those without internet access are increasingly disadvantaged as central and local government join commercial organisations in focusing their service delivery efforts on the connected customer. This is a particular issue for people of working age, when job opportunities and access to benefits are

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both increasingly accessed principally online.

The government estimated in 2009 that a typical household can save £560 per year from shopping and paying bills online, and more recent research published by BT in 2014 ("Valuing digital inclusion") suggested that becoming digitally included is worth £1,064 per year to a new user. On that basis, closing the gap between council tenants and the rest of the country could be worth up to £4m a year to the affected families.

In addition, YHN’s ability to make a significant transition to online service delivery will be limited unless regular internet use among tenants grows substantially.

Finally, internet-connected properties will offer new opportunities for efficiencies and service offerings. For example, the use of sensor technologies to extend average boiler life by one year might generate annual savings of up to £1m.

For these reasons, YHN has an aspiration to provide affordable (and ideally free) basic internet access to all tenants, and we have already made a start through the provision of free Wi-Fi in the communal areas in sheltered accommodation, young people’s services and many of our tower blocks.

The draft capital programme due for consideration at Cabinet 27 January includes £2m (£500k per year for four years) to allow us to go much further towards meeting that aspiration over the next four years and hopefully to approach universal free access.

3.6 Capabilities and skills

We know that internet access is not the only reason for people not being online. Many people lack the skills and confidence needed.

Research shows that people in work who acquire digital skills achieve a rise in earnings of between 3% and 10%, and that having digital skills helps improve the likelihood of someone who is unemployed finding a new job. Only 27% of young people who are offline are in full-time employment.

YHN’s digital champions programme provides training for tenants so that they can in turn support other tenants in getting online. We are pooling resources with the Council so that we can retain a shared digital inclusion team to continue to develop the digital champions while running other digital skills programmes.

We have adopted a similar approach internally by creating a virtual “Digital Staff Network”, who provide feedback on digital initiatives and support to less confident colleagues.

3.7 Efficiencies

The Council is facing unprecedented funding cuts, and is looking to the “Digital By Choice” programme to help reduce the cost of customer contact.

As YHN tackles our own budget pressures, digital transformation will allow us to reduce the cost of routine transactions with those who are already digitally capable, while using some of those savings to help digitally excluded to gain the access and skills they need to use the new online services.

We are participating this year in a research project with nine other social housing providers, which will test a range of digital service approaches based on behavioural insights and choice architecture (also known as

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“nudge”) to produce rigorous evidence on those that generate genuine savings.

While this report concentrates primarily on digital engagement with customers, most of the savings we expect to generate from the “use of modern technology and innovation to challenge and redefine service delivery” highlighted in the draft Business Strategy will come from greater efficiencies in internal processes. Increased use of mobile technology and automated work scheduling is already improving staff utilisation in the Furniture Service and Concierge, and we expect to continue investing in technologies such as this where they will reduce our operating costs in the longer term.

The Council’s Digital First team will similarly be seeking to achieve digital transformation both in interactions with customers and in the way services are organised and delivered.

4. The Business Implications

4.1 Mission and Strategic Objectives:

The proposals in this report support the ambitions of the Digital by Choice vision and the existing YHN Business Strategy ICT Plan, which contribute to the YHN strategic objectives of “make the money deliver” and “work together to realise a brighter future” through the delivery of “Inclusive Digital Housing Services”.

The draft 2016-2020 business strategy makes explicit reference to Digital By Choice and the key elements of this report within the cross-cutting objective to “use modern technology and innovation to challenge and redefine service delivery”.

4.2 Value for money/efficiencies:

YHN’s approach to Digital By Choice recognises high levels of digital exclusion and so will provide higher levels of support to tenants for longer and preserve face-to-face provision. This will limit our ability to make efficiencies from digital interactions with customers, at least in the short term.

In the long term, existing research and evidence in the area of “choice architecture” suggest that big savings will be hard to realise unless we are prepared to be bold in the way we construct “default options”. For example, much greater savings can be made by asking customers to “opt in” to continue to receive paper rent statements, rather than trying to persuade them to “opt out”.


YHN’s Digital By Choice programme has been funded from existing budgets. Extension of the digital champions programme will require approximately £5k per cohort of twenty people for hardware and training. £2m over four years has been included in the draft capital programme to provide free internet access for tenants.


A digital services team of three staff has been established within the YHN ICT service without growth to the establishment. YHN and the Council has pooled resources to create a shared digital inclusion team of two staff for two years to build on the success of the YHN Digital Champions programme and

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provide digital skills training and support.

4.5 Impact on services/performance:

The development of an integrated customer portal for Council and YHN services will significantly improve online services.

4.6 Outcomes for tenants/leaseholders:

The Digital By Choice programme will encourage and support more people to become online or to use the Council’s People’s Network to engage online. This will also introduce non-digitally active residents to a whole range of online activity, not just for Council and YHN transactions, but also email, online shopping, and other digital activities that most people take for granted.

All residents will have the opportunity to engage equally with digital communications and services, with mediated support from frontline staff for those who need it, in proportion to that need.

There is strong evidence that being digitally included has significant benefits for individuals and families – an estimated £1,064 saving per year to people becoming digitally engaged for the first time, as well as improved educational and employment outcomes.


There is a risk that customers continue to prefer face to face contact – this will be mitigated by developing an excellent digital offer, positively promoting benefits, and where appropriate targeting provision;

There is a risk that the funding for free tenant internet access will receive negative coverage in the press, especially if it is not seen to be delivering significant benefits – this will be mitigated by delivering and evaluating the programme in small, discrete work packages.

4.8 Environmental:

Any move towards online services has a number of low-impact environmental impacts, including a reduction in paper and energy use and a reduction in transportation consumption.

4.9 Legal:

It may be necessary to take legal advice where the status of electronic communications is unclear in relevant legislation or regulatory requirements, e.g. for the provision of paper rent statements. State aid and procurement advice will be required in relation to the tenant internet access capital works.

4.10 Equality and Diversity and Community Cohesion:

Older people, along with those with disabilities, low educational attainment and low wages are most likely to be digitally excluded, so all of these groups will benefit where we are successful in getting them online.

Where we are unsuccessful, people in these same groups will experience a negative impact to the extent that any existing services are removed or downgraded.

4.11 Stakeholder Involvement/consultation:

There has been wide consultation on the Digital by Choice vision (some of

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which has been facilitated by YHN officers). Generally the vision has been endorsed by residents and stakeholders.

Internally, “Digital” was the main focus of “Team Brief” in December last year.

Further engagement with customers is planned throughout the development of online services.

5. Conclusion and Recommendations

5.1 YHN Board has already committed to be a partner in the Digital by Choice programme, accepting that there will always be some residents that need face to face support.

Good progress has already been made in many of the areas covered by this report, all of which are now being delivered under one Head of Service, with the Customer Service and Improvement function now reporting to the Head of IT.

As delivery of Digital By Choice will be a significant driver of the overall business strategy, it is recommended that Board continue to receive periodic updates on progress against the associated actions, with the next update scheduled in six months’ time.

5.2 YHN Board is invited to receive this update and approve the recommendation.

6. Implementation

6.1 The Digital by Choice Programme will continue to be progressed through:

joint work between YHN and the Council through the NCC Digital First team and the YHN Digital Services team to deliver improved online services

a rolling delivery plan for tenant internet access

a continuation of the digital champions programme for at least a further 12 months

Both YHN and the Council have adopted “agile” project delivery methods for this work, an approach widely adopted in government ICT delivery which aims to be more flexible and responsive to changing circumstances, and to deliver tangible outcomes more quickly.

Background Papers:

Digital by Choice (Board Report), June 2015

Digital by Choice (NCC Cabinet Report), June 2015

Customer Service (Board Report), March 2015

Tenant Broadband (Board Reports), January/July/December 2014

“Valuing Digital Inclusion”, Just Economics for BT, June 2014

“Nudge: Improving Decisions About Health, Wealth and Happiness”, Sunsein & Thaler, 2009

“Digital Britain”, UK Government, 2009 Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact:

Neil Scott, Director of Tenancy Services, 0191 2788711, [email protected]

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Tony Durcan, Assistant Director, NCC. 0191 211 5383, [email protected]

Geof Ellingham, Head of IT, YHN. 0191 2784392, [email protected]

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xp

ecte

d t

o b

e a

n e

arly d

eliv

era

ble

in

th

e t

en

ant

inte

rne

t acce

ss e

lem

en

t of

the

ca

pita

l p

rog

ram

me

.

A4 – Free Wi-Fi in low-rise

accommodation

P

rovid

e f

ree

Wi-F

i w

ith

in c

om

mu

na

l sp

ace

s in

a s

ma

ll n

um

be

r of

low

-ris

e

acco

mm

od

atio

n b

locks.

Th

is w

ill b

e a

de

live

rable

in

the

te

nan

t in

tern

et a

cce

ss e

lem

en

t o

f th

e c

ap

ita

l p

rog

ram

me

.

5

Page 40 of 81

A5 – Internet-enabled tablets

for targeted use

Pro

vid

e f

ree

ta

ble

t com

pute

rs w

ith

a lo

w-

ba

nd

wid

th 3

G d

ata

con

tra

ct

to ta

rge

ted

cu

sto

me

rs s

ub

ject to

Un

ive

rsa

l C

red

it f

or

a 1

2 m

on

th p

erio

d.

Co

mp

lete

d:

a low

-co

st

(£7

0)

tab

let

ha

s

be

en

pro

vid

ed

to

pa

rtic

ipa

nts

in

the

Dig

ita

l C

ha

mp

ion

s p

ilot

to d

eliv

er

su

ppo

rt to

o

the

r te

na

nts

.

De

ve

lop

a s

tru

ctu

red

pro

gra

mm

e t

o

pro

vid

e t

ab

let

com

pu

ters

with

a lo

w-

ba

nd

wid

th 3

G d

ata

con

tra

ct

to ta

rge

ted

cu

sto

me

rs w

ith

in a

fra

me

wo

rk o

f in

ce

ntive

s a

nd

aff

ord

ab

le p

aym

en

ts.

C1 - Digital skills support for tenants

De

ve

lop

a d

igita

l skill

s s

up

po

rt m

od

el

inclu

din

g d

igita

l ch

am

pio

ns a

nd

fa

ce

-to

-fa

ce

skill

s s

upp

ort

, a

nd id

en

tify

ava

ilab

le

exte

rna

l fu

nd

ing.

Co

mp

lete

d:

Th

e d

igital ch

am

pio

ns

pro

gra

mm

e h

as b

ee

n e

sta

blis

he

d, a

nd

a

ran

ge

of d

igita

l skill

s s

up

po

rt h

as b

ee

n

de

ve

lop

ed in

clo

se

coop

era

tion

with

th

e

Co

un

cil.

Imp

lem

en

t th

e m

od

el to

pro

vid

e s

up

po

rt

for

the m

ed

ium

te

rm a

ctio

ns in

th

is p

lan

.

Co

mp

lete

d:

40

dig

ita

l ch

am

pio

ns h

ave

b

een

tra

ine

d, a

nd

ha

ve s

o f

ar

en

ga

ge

d

with

460

ten

ants

, fo

cu

sin

g s

pe

cific

ally

on

site

s w

he

re fre

e W

i-F

i h

as b

ee

n r

olle

d o

ut.

Wi-F

i la

un

ch p

art

ies h

ave

bee

n d

eliv

ere

d

at

13

ven

ue

s.

Dig

ita

l ch

am

pio

ns a

lso s

up

po

rt

Co

mm

un

ity O

pe

n D

ays,

one

to o

ne

a

ppo

intm

en

ts,

dro

p in

se

ssio

ns, g

roup

tr

ain

ing

se

ssio

ns a

nd a

pp

oin

tme

nt

se

ssio

ns in

Ho

usin

g O

ffic

es.

Pla

n a

nd

im

ple

men

t a

city-w

ide

ro

llou

t of

the

su

ppo

rt m

ode

l, w

ork

ing w

ith

th

e

Co

un

cil

and

oth

er

pa

rtn

ers

and

usin

g

evid

en

ce

to f

ocu

s in

ve

stm

en

t on

are

as o

f gre

ate

st

ne

ed.

Sh

are

d Y

HN

an

d C

ou

ncil

dig

ita

l in

clu

sio

n

ca

pa

city h

as b

een

esta

blis

he

d fo

r 2

ye

ars

to

sup

po

rt d

igita

l ch

am

pio

ns a

nd

co

ord

inate

th

e d

igita

l skill

s t

rain

ing

an

d

su

ppo

rt.

Page 41 of 81

C2 - Digital skills support for front-line staff A

gre

e t

he r

ole

of fr

ont-

line

sta

ff in

diffe

ren

t se

rvic

es in

su

pp

ort

ing te

nan

ts g

ett

ing

on

line

. U

nde

rsta

nd

the

skill

s g

ap

s f

or

sta

ff to

sup

po

rt c

usto

me

rs t

o u

se

dig

ita

l se

rvic

es.

Aw

are

ne

ss o

f th

e d

igita

l p

rog

ram

me

ha

s

be

en

ra

ise

d a

t te

am

me

eting

s a

nd

th

rou

gh

vid

eo

blo

gs, m

essa

ge

s o

n t

he

in

tra

ne

t a

nd

em

ails

sen

t to

ma

na

ge

rs fo

r d

isse

min

atio

n t

o s

taff.

A d

igita

l sta

ff n

etw

ork

ha

s b

ee

n s

et u

p,

ma

de

up

of

sta

ff w

ho

are

pa

ssio

na

te

ab

ou

t a

ll th

ing

s d

igita

l. G

rou

p m

em

be

rs

are

su

pp

ort

ing

co

llea

gu

es to

un

de

rsta

nd

the

ro

le o

f d

igita

l in

their w

ork

.

Pro

vid

e a

pp

rop

ria

te tra

inin

g,

su

ppo

rt a

nd

gu

ida

nce

to

fro

nt-

line

sta

ff in a

rea

s

aff

ecte

d b

y t

he

oth

er

sh

ort

te

rm a

ctio

ns in

th

is p

lan

.

NC

C a

re c

urr

en

tly w

ork

ing

on

an L

MS

m

od

ule

to

he

lp to

in

form

sta

ff a

bou

t a

ll th

ing

s d

igita

l a

nd t

he

ir r

ole

Re

vie

w t

he

im

pa

ct a

nd c

osts

of

the

in

vo

lve

me

nt of

fro

nt-

line

sta

ff in

su

ppo

rtin

g d

igita

l in

clu

sio

n w

ork

in

th

e

pilo

t a

rea

s,

agre

e a

n o

rga

nis

atio

n-w

ide

a

pp

roa

ch

an

d p

rovid

e tra

inin

g,

su

ppo

rt

an

d g

uid

an

ce a

s a

pp

rop

ria

te.

C3 – Communications

and awareness plan

De

ve

lop

an

d la

un

ch

dra

ft p

lan

.

De

vis

e a

pla

n to

en

coura

ge

cu

sto

me

rs to

a

cce

ss s

erv

ice

s o

nlin

e in

ste

ad

of fa

ce

to

fa

ce

or

via

th

e te

leph

on

e.

Co

mp

lete

d:

Initia

l co

mm

un

ica

tio

ns h

as

focu

sed

on

en

su

rin

g t

ha

t cu

sto

me

rs w

ere

a

wa

re o

f th

e w

ith

dra

wa

l o

f ca

sh

iers

fro

m

cu

sto

me

r se

rvic

e c

en

tre

s,

usin

g p

oste

rs

an

d a

uto

ma

ted

ph

one

ca

mp

aig

ns.

Vid

eo

blo

gs p

oste

d o

n F

ace

boo

k a

nd

Y

ou

Tub

e h

ave p

rovid

ed

add

itio

na

l in

form

atio

n a

bo

ut

ou

r d

igita

l p

lan

s.

De

vis

e a

pla

n to

re

co

gn

ise

ho

w w

e c

an

su

ppo

rt t

he

mo

st

vu

lnera

ble

cu

sto

me

rs t

o

acce

ss s

erv

ice

s in

the

dig

ita

l w

orld

.

5

Page 42 of 81

S1 – Accessible online services Id

entify

YH

N m

ost fr

equ

en

t in

tera

ctio

ns to

e

nsu

re th

at

we

ta

ckle

th

e s

witch

to

on

line

d

eliv

ery

in

th

e r

igh

t o

rde

r.

Co

mp

lete

d:

the

“T

op

7 t

he

me

s”

we

re

ide

ntified

an

d h

ave b

ee

n u

se

d to

de

live

r e

arly im

pro

ve

me

nts

.

Fo

r th

e T

op

7 t

hem

es, im

pro

ve

exis

tin

g

on

line

pro

ce

sse

s a

nd

im

ple

men

t ne

w

on

line

se

rvic

es w

he

re n

one

cu

rre

ntly

exis

t.

Pa

ym

en

t syste

ms h

ave

bee

n u

pg

rad

ed

.

Ho

me

Co

nte

nts

In

su

ran

ce

ap

plic

ation

s

an

d c

laim

s a

re a

va

ilab

le o

nlin

e.

Re

pla

ce

me

nt

do

or

en

try f

ob

s a

re o

rde

red

thro

ugh

an

on

line

-on

ly p

roce

ss.

S2 – Mobile services

Imp

rovin

g t

he

YH

N M

ob

ile A

pp

to d

eliv

er

mo

re tra

nsa

ctio

na

l se

rvic

es,

imp

rove

la

yo

ut

an

d f

un

ctio

na

lity,

and

bra

nd

th

e

ap

p a

s Y

HN

.

Co

mp

lete

: th

e a

pp

was r

eb

rand

ed

with

Y

HN

co

lou

rs a

nd

mo

re b

utto

ns w

ere

a

dde

d to

giv

e t

he

cu

sto

me

r q

uic

ke

r a

cce

ss f

rom

th

e fro

nt

scre

en

.

To in

cre

ase c

usto

me

r fu

nction

alit

y t

o u

se

the

ap

p f

or

se

rvic

e r

equ

ests

.

Co

mp

lete

: T

he a

pp

con

tin

ue

s t

o g

ive

cu

sto

me

rs a

cce

ss to

bid

din

g f

or

pro

pe

rtie

s

an

d r

ep

ort

ing

re

pa

irs.

Imp

rove

me

nts

ha

ve

b

een

ma

de

fo

r cu

sto

me

rs p

ayin

g t

he

ir

ren

t, r

ep

ort

ing a

nti-s

ocia

l b

eh

avio

ur

or

ma

kin

g a

co

mp

lain

t.

Th

e a

pp

now

als

o

allo

ws r

ep

ort

ing

en

viro

nm

en

tal is

su

es,

acce

ss to

jo

bs,

a lin

k to

YH

N’s

Fa

ce

bo

ok

new

sp

ag

e a

nd a

fe

ed

ba

ck b

utt

on

.

To lin

k t

he

ap

p d

eve

lop

men

t to

th

e

red

esig

n o

f th

e Y

HN

we

bsite

to

giv

e t

he

sa

me u

sab

ility

an

d fu

nctio

na

lity

irre

sp

ective

of

the

typ

e o

f de

vic

e t

he

cu

sto

me

rs u

se

(i.e

. sm

art

ph

on

e, ta

ble

t,

PC

).

We

an

ticip

ate

th

at th

e a

pp

will

be

dis

co

ntinu

ed o

nce

a f

ully

re

sp

on

siv

e

web

site

an

d c

usto

me

r p

ort

al a

re a

va

ilab

le.

Page 43 of 81

S3 – SMS (text

messaging)

Exte

nd

con

tra

ct

with

su

pp

lier

(De

ep

lake

) fo

r a

fu

rth

er

ye

ar,

de

ve

lop

ing a

nd

eva

lua

tin

g n

ew

use

s for

the

se

rvic

e

Co

mp

lete

: te

xt

me

ssa

gin

g is n

ow

be

ing

u

se

d s

ucce

ssfu

lly w

ith

in t

he

In

co

me

te

am

.

Ad

ditio

na

l u

se

s w

ill b

e id

en

tified

as n

ew

o

nlin

e s

erv

ice

s a

re d

eve

lop

ed

.

S4 – Social Media

Co

ntin

ue

to in

cre

ase

ou

r u

se

of

so

cia

l m

ed

ia a

s a

to

ol to

sha

re info

rma

tion

with

o

ur

follo

we

rs.

Co

mp

lete

: F

aceb

oo

k, T

witte

r a

nd

Yo

uT

ub

e a

re u

se

d to

sh

are

new

s s

torie

s

an

d in

form

atio

n.

Re

vie

w o

ptio

ns fo

r re

sp

ond

ing t

o

cu

sto

me

r en

qu

irie

s t

hat

are

re

ce

ive

d v

ia

so

cia

l m

ed

ia, in

clu

din

g c

on

sid

era

tio

n o

f h

ow

an

d w

he

n r

esp

onse

s s

hou

ld b

e

pro

vid

ed

outs

ide

tra

ditio

na

l w

ork

ing h

ou

rs.

5

Page 44 of 81

S5 – Website Redesign

Re

de

sig

n Y

HN

we

bsite

to

ma

ke

it

“re

sp

on

siv

e”

(i.e

. e

asily

usa

ble

on m

ob

ile

ph

on

es a

nd

ta

ble

ts),

su

ppo

rt g

rea

ter

cu

sto

me

rs in

tera

ction

an

d r

efle

ct

the

ch

an

ge

s m

ad

e to

th

e m

ob

ile a

pp

.

Th

e r

ep

lace

me

nt

site

will

use

a

co

mm

erc

ially

ava

ilab

le p

latfo

rm

(Wo

rdp

ress)

to m

inim

ise

co

sts

, w

hile

e

nsu

rin

g t

he

site

co

ntin

ue

s to

me

et

cu

sto

me

r e

xp

ecta

tio

ns f

or

fun

ctio

na

lity.

Th

e w

eb

site

will

be

desig

ne

d a

s a

“b

roch

ure

site

” w

ith

tra

nsa

ction

s t

akin

g

pla

ce

th

roug

h th

e s

ha

red

cu

sto

me

r p

ort

al

be

ing d

eve

lope

d w

ith th

e C

ou

ncil

by th

e

Dig

ita

l F

irst

tea

m.

S6 –Telephony

Dra

ft v

isio

n,

co

nsu

lta

tio

n w

ith

cu

sto

me

rs,

ap

pro

ve

vis

ion

, n

ext

ste

ps to

re

vie

w t

he

co

nta

ct

cen

tre

an

d e

nqu

iry c

en

tre

d

eliv

ery

.

Co

mp

lete

: th

e te

lep

hon

y v

isio

n h

as b

een

a

gre

ed

an

d is c

on

sis

ten

t w

ith

th

e D

igita

l V

isio

n t

o c

om

ple

me

nt

NC

C a

nd

YH

N t

o

su

ppo

rt c

usto

me

rs t

o m

ake

th

e m

ove

to

o

nlin

e s

erv

ice

s.

Page 45 of 81

E1 – Nudge Research

Pa

rtic

ipa

te in

th

e “

Nudge

Yo

ur

Wa

y T

o

Ch

an

ne

l S

hift”

re

se

arc

h p

roje

ct, r

un b

y

CA

PIT

A.

YH

N h

as a

gre

ed

to p

art

icip

ate

in

the

p

rog

ram

me

, jo

intly w

ith

the

Co

un

cil.

T

he

p

rog

ram

me

is d

ue

to

be

gin

in F

eb

rua

ry

20

16

.

5

Page 46 of 81


Governance Improvement Plan Update

Board Learning and Development Plan

Report by Company Secretary

For Decision

1. Background information

1.1 This report provides an update on the Governance Improvement Plan and sets out a Learning and Development Plan for Board members for 2016/17.

1.2 At the Board Away Day in April 2015, Board members received a presentation from Fiona Underwood of Altair outlining the Homes and Communities Agency (HCA) regulation reform, the responsibilities of Boards and highlights from the Cosmopolitan report. One key area from the HCA Governance regulation is; Registered providers shall ensure that they manage their affairs with an appropriate degree of skill, independence, diligence, effectiveness, prudence and foresight Board reviewed a self-assessment which had been completed against the HCA Regulatory Standards and highlighted the current compliance, gaps and governance issues and agreed a set of actions, the Governance Improvement Plan.

2. Progress to date

2.1 The updated Governance Improvement Plan is attached as appendix 1 and shows the progress which has been made by the officers and Board members in improving the governance of the organisation, to ensure our performance meets the standard.

2.2 A lot of the work has been completed over the last nine months in conjunction with the disaggregation project, especially around the structure of the Board, subsidiaries and committees as well as new documentation such as a Board member job description and the Group Governance Handbook.

6

Page 47 of 81

2.3 All actions completed to the target date have been marked as completed, with just two actions which had slight delays in the completion date.

2.4 The actions which are still outstanding are; - Benchmarking other ALMO agenda content and report templates - Amending Board report template and contents - Appraisal process to be reviewed - Governance review included in the Internal Audit Plan - Succession Plan of senior executives devised

These will be carried over into 2016.

3. Learning and Development Plan

3.1 In order to achieve our strategic objectives - the shape, skills and knowledge of YHN’s workforce needs to constantly develop and adapt within the context of some challenging and seemingly conflicting targets e.g. the need to make large cost savings whilst maintaining the quality of service for tenants. Integral to success is the provision of relevant and effective learning and development of all staff groups at every level within the organisation including the Board.

Devising a Learning and Development plan, linked to the Board member role description and specific Board member responsibilities, was highlighted in the Governance Improvement Plan as a medium priority action with a completion date of December 2015. This needed to include training on strengthening financial understanding and the ability to scrutinise reports and training linked to the new role description, in order to strengthen governance within the organisation.

With this brief, a range of learning and development areas were agreed by Board in September 2015. Appendix 2 sets these areas out in greater detail showing the delivery method and timescales.

3.2 The first development area which has been identified for all Board members is in relation to the legal role of the Board and directors duties. We have worked with a leading law practice, Anthony Collins, who specialise in training and have previously delivered events for YHN. The full day session will include the key areas relating to legislation, directors duties and liabilities, governance and equality and diversity legislation.

3.3 The rest of the learning and development plan is a mixture of delivery methods using in-house training with officers such as the Head of Finance, LMS e-learning and board briefing sessions.

3.4 Board members are requested to review, comment and approve the content of the Learning and Development Plan.

4. How success is measured

4.1 Attendance at the training sessions will be recorded and reported to the Board annually and individual members Learning and Development will form

Page 48 of 81

part of the Board members reviews with the Chair.

5. The Business Implications

5.1 Mission and Strategic Objectives:

The development of the Board contributes to all the strategic objectives of the organisation as the Board is the strategic leadership of the organisation and should be fit for purpose at all times.

5.2 Value for money/efficiencies:

We have sourced a range of internal and external training providers to ensure value for money.


The Board has a development budget of £5,000, these proposals are within budget.


In most of the proposals in house training utilising the skills of current staff has been recommended, with external providers sourced for the legal aspects.

5.5 Impact on services/performance:

Learning and development will ensure the Board are equipped to discharge their responsibilities and perform effectively.

5.6 Outcomes for tenants/leaseholders:

A well informed Board will contribute to more informed strategic decisions being made for the benefit of the organisation and all tenants/leaseholders.


The development of effective decision making and good governance within YHN ensures the organisation is well run and avoids any risks of reputational damage or governance failures.

5.8 Environmental: none

5.9 Legal: as discussed in the body of the report

5.10 Equality and Diversity and Community Cohesion: as discussed in the body of the report

5.11 Stakeholder Involvement/consultation: none

6. Conclusion and recommendations

6.1 Board is recommended to review, comment and approve the Learning and Development Plan.

6

Page 49 of 81

7. Implementation

7.1 The Company Secretary will ensure all learning and development is scheduled throughout the year, monitor and record attendance and report to the Board annually on the progress of the plan and member attendance.

Background Papers Board member role description Group Governance Handbook 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 [email protected]

Page 50 of 81

Boa

rd L

earn

ing

an

d D

eve

lop

me

nt

Pla

n 2

01

6/1

7

Th

em

e

Wh

at

are

as

wil

l b

e c

ove

red

W

ho

re

qu

ire

s t

his

?

Ho

w i

t w

ill

be

de

live

red

T

ime

sc

ale

T

he

role

of

the

B

oa

rd a

nd its

m

em

be

rs

Fid

ucia

ry d

utie

s

Duties u

nd

er

the

Co

mp

an

ies A

ct 2

006

‘Oth

er’ d

utie

s –

sta

tuto

ry a

nd

co

mm

on

la

w in

clu

din

g r

egu

lato

ry,

the

Brib

ery

A

ct

and

Co

rpo

rate

Man

sla

ugh

ter

Lia

bili

ty o

f tr

uste

es

Dea

ling w

ith

co

nflic

ts o

f in

tere

st

Gu

idan

ce

an

d r

ea

ssu

ran

ce

Prin

cip

les o

f goo

d g

ove

rna

nce

Regu

lato

ry F

ram

ew

ork

exp

ecta

tion

s

Ris

k m

ana

ge

men

t a

nd r

isk f

low

Role

s –

of

the

Bo

ard

, th

e E

xe

cu

tive

, w

ith

sh

are

ho

lde

rs a

nd

su

bsid

iarie

s

Eff

ective

Boa

rd p

erf

orm

an

ce

Equ

alit

y le

gis

latio

n a

nd t

he

pro

tecte

d

ch

ara

cte

ristics

Exp

ecta

tio

ns o

n e

mp

loye

rs

How

to

ma

na

ge

alle

ga

tion

s o

f d

iscrim

ina

tion

etc

.

Ris

ks a

nd

lia

bili

ties

All

ne

w s

tart

ers

plu

s a

ny e

xis

ting

bo

ard

me

mb

ers

wh

o h

ave

a

sse

ssed

kn

ow

led

ge

as ‘lim

ite

d’ o

r ‘n

on

e’.

To e

nsu

re v

alu

e fo

r m

on

ey w

e

wo

uld

en

co

ura

ge

all

Bo

ard

m

em

be

rs to

att

en

d.

An

tho

ny C

olli

ns S

olic

ito

rs

Em

plo

ym

en

t a

nd

go

ve

rna

nce

pro

fessio

na

ls to

pro

vid

e

be

spo

ke

tra

inin

g c

ove

rin

g a

ll d

utie

s c

ove

red

by

legis

latio

n.

Full

da

y c

ou

rse h

eld

at Y

HN

Ho

use

to

in

clu

de t

hre

e

ele

me

nts

;

D

ire

cto

rs’

Du

ties

an

d L

iab

ilit

ies

Go

ve

rna

nce

E

qu

ali

ty a

nd

Div

ers

ity

Da

te to

be

agre

ed in

ea

rly 2

01

6

(Ap

ril)

Go

ve

rna

nce

at

YH

N

Gro

up

go

ve

rna

nce

ha

nd

boo

k

Sta

nd

ing o

rde

rs

Cod

e o

f con

du

ct

All

ne

w s

tart

ers

O

ne

to

on

e w

ith

Com

pa

ny S

ecre

tary

G

rou

p G

ove

rna

nce H

an

dbo

ok,

Cod

e o

f C

on

du

ct

W

ith

in o

ne

mo

nth

of

ap

po

intm

en

t

Fin

an

ce

le

ve

l o

ne

Ba

sic

defin

itio

ns

How

to

rea

d a

nd

und

ers

tan

d f

inan

cia

l in

form

atio

n

An

in

trod

uction

to

YH

N’s

fin

an

ce

s

All

bo

ard

mem

be

rs w

ith

ou

t a

cco

un

tan

cy q

ua

lific

atio

n

In h

ou

se t

rain

ing s

essio

n w

ith

He

ad

of

Fin

an

ce

eithe

r o

ne

to

on

e s

essio

n o

r sm

all

gro

up

se

ssio

ns

Qu

art

er

1

Fin

an

ce

le

ve

l tw

o

Va

lue

fo

r m

one

y

Net

pre

sen

t va

lue

C

ash

flo

w

Bu

sin

ess c

ase

s

Str

ess t

estin

g

Mo

re d

eta

iled

loo

k a

t Y

HN

’s f

inan

ce

s

All

bo

ard

mem

be

rs

In h

ou

se t

rain

ing s

essio

n w

ith

He

ad

of

Fin

an

ce

p

rogra

mm

ed

into

Bo

ard

fo

rwa

rd p

lan

to

be

com

ple

ted

a

t B

oa

rd m

ee

tin

g.

Qu

art

er

1

(10

May 2

01

6 B

oa

rd)

6

Page 51 of 81

Ris

k,

au

dit a

nd

brib

ery

le

ve

l o

ne

Lia

bili

ties a

nd

ba

sic

con

ce

pts

A

ll b

oa

rd m

em

be

rs –

an

nua

l re

fresh

er

E-L

ea

rnin

g L

MS

(L

ea

rnin

g M

an

age

me

nt S

yste

m)

Curr

en

t B

rib

ery

Mo

du

le t

o b

e r

efr

eshe

d to

in

clu

de

R

isk a

nd

Au

dit

Co

uld

be

de

live

red

as a

gro

up

se

ssio

n fo

r th

ose

wh

o

do

no

t e

nga

ge

with

E-L

ea

rnin

g.

Ne

w L

MS

la

un

ch

on

1st A

pril 20

16,

all

Bo

ard

m

em

be

rs to

be

issue

d w

ith

pa

ssw

ord

s,

brie

fing

se

ssio

n o

n L

MS

to

be

sch

edu

led

into

Bo

ard

me

etin

g.

Qu

art

er

2

Ris

k,

au

dit a

nd

brib

ery

le

ve

l tw

o

Mo

re d

eta

iled

le

ve

l of

the

sam

e c

on

ce

pts

A

ud

it C

om

mitte

e m

em

be

rs

Brie

fin

g s

essio

ns p

lann

ed

in

to G

rou

p A

ud

it m

eetin

gs:

Au

dit inte

rna

l &

exte

rna

l o

ve

rvie

w f

or

ne

w

mem

be

rs

Ris

k m

ana

ge

men

t

Fra

ud

, B

ribe

ry, W

his

tleb

low

ing

Th

rou

gh

ou

t 2

01

5/1

6

Equ

alit

ies a

nd

d

ive

rsity le

ve

l o

ne

The

le

ga

l fr

am

ew

ork

All

ne

w s

tart

ers

plu

s a

ny e

xis

ting

bo

ard

me

mb

ers

wh

o h

ave

a

sse

ssed

kn

ow

led

ge

as ‘lim

ite

d’ o

r ‘n

on

e’.

Equ

alit

y le

gis

latio

n s

essio

n p

rovid

ed

by A

nth

on

y

Colli

ns (

se

e s

ectio

n a

bo

ve

)

Da

te to

be

agre

ed in

ea

rly 2

01

6

(Ap

ril)

Equ

alit

ies a

nd

d

ive

rsity le

ve

l tw

o

Le

ga

l fr

am

ew

ork

A

wa

ren

ess r

ais

ing

Cha

ngin

g f

ace

of

div

ers

ity

E&

D a

t Y

HN

All

bo

ard

mem

be

rs –

an

nua

l re

fresh

er

Mix

ture

of

info

rma

tio

n r

ep

ort

s to

Bo

ard

mee

tings,

in-

ho

use

briefing s

essio

n a

nd

an

nu

al E

-Le

arn

ing

refr

esh

er.

Qu

art

er

2

Hea

lth

an

d

Safe

ty

The

le

ga

l fr

am

ew

ork

an

d B

oa

rd’s

lia

bili

ty

Hea

lth

an

d s

afe

ty a

t Y

HN

All

bo

ard

mem

be

rs –

an

nua

l re

fresh

er

Le

ga

l p

rofe

ssio

na

l to

de

live

r 2 h

ou

r sessio

n

Qu

art

er

4

Safe

gu

ard

ing

The

le

ga

l fr

am

ew

ork

an

d B

oa

rd’s

role

H

ow

we

ma

na

ge

safe

gu

ard

ing a

t Y

HN

All

bo

ard

mem

be

rs –

an

nua

l re

fresh

er

In h

ou

se -

fa

ce t

o fa

ce b

espo

ke

se

ssio

n d

eliv

ere

d b

y

Org

an

isation

al D

eve

lop

men

t.

Qu

art

er

3

Ge

ttin

g t

o k

no

w

ou

r serv

ices

The

wa

y s

erv

ices a

re d

eliv

ere

d

The

issu

es r

egu

larly f

ace

d

Ke

y s

ucce

sse

s a

nd c

ha

llen

ge

s

Op

tio

na

l fo

r th

ose

wh

o h

ave

id

en

tified

th

is a

s a

need

T

wic

e y

ea

rly e

sta

te to

urs

an

d te

am

vis

its –

to in

clu

de

na

rra

tio

n o

n s

erv

ice

s (

e.g

. A

SB

, sh

elte

red,

yo

un

g

pe

op

le,

op

tion

s)

as w

ell

as s

tock im

pro

ve

me

nt a

nd

rege

ne

ratio

n

Th

rou

gh

ou

t 2

01

6/1

7

Ge

ttin

g t

o k

no

w

ou

r custo

me

rs

Op

po

rtu

nitie

s to

mee

t a

nd

he

ar

fro

m

pe

op

le w

ho

use t

he

serv

ice

s

Op

tio

na

l fo

r th

ose

wh

o h

ave

id

en

tified

th

is a

s a

need

In

vita

tio

ns to

bo

ard

mem

be

rs to

eve

nts

(S

TA

R

aw

ard

s e

tc.)

and

fa

ce

to

fa

ce

info

rmatio

n b

ooth

s le

d

by C

usto

me

r In

vo

lve

me

nt T

eam

Th

rou

gh

ou

t 2

01

6/1

7

Le

ga

l u

pd

ate

s

Hou

sin

g P

olic

y

Va

rio

us a

sp

ects

of

law

an

d p

olic

y

rele

va

nt

to o

ur

serv

ices

Op

tio

na

l fo

r th

ose

wh

o h

ave

id

en

tified

th

is a

s a

need

Invita

tio

ns to

bo

ard

mem

be

rs to

se

min

ars

and

co

nfe

ren

ce

s a

s a

nd

wh

en

ava

ilab

le

Bo

ard

briefing s

essio

ns

Th

rou

gh

ou

t 2

01

6/1

7

Page 52 of 81

Te

ch

no

logy

To b

e b

ase

d o

n fu

rthe

r a

na

lysis

of

ne

ed

O

ptio

na

l fo

r th

ose

wh

o h

ave

id

en

tified

th

is a

s a

need

In h

ou

se t

rain

ing w

ith

IC

T T

rain

ing a

nd

Su

ppo

rt

Off

ice

r. T

rain

ing n

eeds a

na

lysis

fo

rms a

va

ilab

le t

o

ide

ntify

in

div

idu

al n

ee

ds.

Th

is in

clu

de

s P

C

Aw

are

ne

ss a

nd

Mic

rosoft

Off

ice

soft

wa

re.

Besp

oke

se

ssio

ns c

an

th

en b

e d

eliv

ere

d t

ailo

red

to

th

e g

rou

p

or

ind

ivid

ua

l n

ee

ds.

Th

rou

gh

ou

t 2

01

6/1

7

Em

plo

ym

en

t

Ba

sic

s o

f em

plo

ye

e r

ela

tio

ns

YH

N p

olic

ies a

nd

pro

ce

du

res

Tho

se

wh

o p

art

icip

ate

in

co

mp

an

y

ap

pe

al pa

ne

ls a

nd

mem

be

rs o

n

the

Jo

int

Con

su

ltative

Co

mm

itte

e

Op

era

tion

al H

R M

ana

ge

r fo

r Y

HN

to

de

live

r a

be

spo

ke

se

ssio

n.

When r

equ

ire

d

Com

me

rcia

l a

cu

me

n

Inn

ova

tio

ns

Be

st

pra

ctice

Retu

rn o

n in

ve

stm

en

t

Ab

ri B

oa

rd m

em

be

rs a

nd

op

tio

na

l fo

r th

ose

wh

o h

ave

id

en

tified

th

is

as a

ne

ed

Ad

ditio

na

l vis

its a

nd

/or

sp

ea

ke

rs t

o b

e d

ete

rmin

ed

by

Ab

ri B

oa

rd

When r

equ

ire

d

Cha

rita

ble

go

ve

rna

nce

C

ore

prin

cip

les

Tru

ste

es r

esp

on

sib

ilities

Asfa

leia

Bo

ard

mem

bers

an

d th

ose

w

ho

ha

ve

id

en

tified

th

is a

s a

nee

d

Half d

ay s

essio

n d

eliv

ere

d b

y C

ha

rity

Skill

s

On

ap

po

intm

en

t to

Asfa

leia

Cha

ir

Deve

lop

men

t D

eve

lop

ing t

he

role

of

the

ch

air

E

nco

ura

gin

g p

art

icip

atio

n

Bu

ildin

g R

ela

tion

sh

ips

Work

ing w

ith

off

ice

s a

nd

exe

cu

tive

s

Cha

ir,

Vic

e C

ha

irs a

nd C

om

mitte

e

Cha

irs

(tbc)

(tbc)

6

Page 53 of 81

GO

VE

RN

AN

CE

IM

PR

OV

EM

EN

T P

LA

N 2

015/1

6

RE

F

AC

TIO

NS

AG

RE

ED

AT

B

OA

RD

AW

AY

DA

Y

PR

IOR

ITY

A

CT

IVIT

Y P

RO

PO

SE

D

(in

clu

din

g

ad

ditio

na

l actio

ns p

rop

ose

d a

t a

wa

y d

ay)

TA

RG

ET

D

AT

E

PR

OG

RE

SS

H2 H

5

A15

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b d

es

cri

pti

on

/Re

cru

itm

en

t R

ole

description w

hic

h inclu

des

responsib

ilities t

o b

e w

ritt

en for

chair/v

ice c

hair/b

oard

m

em

bers

/com

mitte

e c

hairs

“

Skill

s a

nd e

xperience r

eq

uired o

n

the B

oard

” develo

ped into

a P

ers

on

specific

ation w

hic

h inclu

des r

eq

uired

skill

s a

nd q

ualif

ications, in

clu

din

g

financia

l accounta

bili

ty.

S

kill

gaps identified s

hould

influence

targ

ete

d r

ecru

itm

ent fo

r th

e

independent

vacancy w

hic

h w

ill b

e

availa

ble

in 2

015.

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enchm

ark

ing o

f th

e m

ake-u

p o

f B

oard

(siz

e a

nd s

kill

s)

and a

lso

recru

itm

ent pro

cess,

T

he leg

al and f

inancia

l skill

gap

id

entified s

hould

influence t

arg

ete

d

recru

itm

ent fo

r th

e independent

vacancy w

hic

h w

ill b

e a

vaila

ble

in

2015.

HIG

H

1.

Benchm

ark

ing o

ther

HA

/ALM

O’s

on B

oard

siz

e,

skill

s,

role

descriptions a

nd r

ecru

itm

ent

pro

cess

2.

Skill

s s

pecific

ation f

or

the b

oard

as a

whole

, S

kill

s M

atr

ix p

roposed

3.

Revis

ed J

ob d

escription for

Board

mem

bers

, in

clu

de N

ola

n p

rincip

les

4.

Skill

s h

ealth c

heck b

y indiv

idual board

m

em

bers

usin

g S

kill

s M

atr

ix

5.

Recru

itm

ent

of In

dependent

Board

mem

ber

to f

ill v

acancy o

f N

itin

Shukla

influenced b

y

gaps identified in s

kill

s h

ealth c

heck

LA

TE

R

Consid

era

tion o

f C

o-o

pte

es if

sig

nific

ant

skill

s

gap w

hic

h r

eq

uires im

media

te input

Revis

ed J

ob d

escription for

Chair, V

ice C

hair,

and C

om

mitte

e C

hairs I

nclu

ded in t

he G

roup

Govern

ance H

andbook

1.

1 J

une 2

015

2.

16 J

une 2

015

3.

16 J

une 2

015

4.

30 J

une 2

015

5.

22 S

ept 2015

H7

H9

Co

mm

itte

es

Revis

e t

he c

om

mitte

e r

em

it a

nd

schem

e o

f dele

gations f

ollo

win

g

dis

agg

reg

ation

.

Benchm

ark

with o

ther

ALM

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P

com

mitte

e s

tructu

res a

nd t

erm

s o

f re

fere

nce

Board

appro

val of

a

com

pre

hensiv

e f

inancia

l fr

am

ew

ork

needs to b

e u

ndert

aken

inclu

din

g a

revie

w o

f th

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chem

e

HIG

H

1.

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ark

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ther

RP

/ALM

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n c

om

mitte

e

str

uctu

res a

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erm

s o

f re

fere

nce

2.

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posed c

om

mitte

e s

tructu

re a

nd r

em

it r

eport

to

28 J

uly

Board

, in

clu

din

g o

utc

om

es r

eq

uired

and r

eport

ing

to B

oard

req

uirem

ents

3.

Annual cycle

of

busin

ess f

or

Board

to b

e

develo

ped a

nd r

eport

ed to 2

8 J

uly

Board

4.

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e o

f dele

gations r

evis

ed

1.

30 J

une 2

015

2.

28 J

uly

2015

3.

28 J

uly

2015

4.

22 S

ept 2015

6

Page 54 of 81

of

dele

gations a

nd f

inancia

l re

gula

tions.

The c

urr

ent fo

rward

pla

n t

o b

e

adapte

d into

a s

trate

gic

annual

cycle

of

busin

ess for

the B

oard

and c

om

mitte

es w

hic

h c

an

inte

gra

te a

gendas a

nd e

nsure

a

focus o

n a

chie

vin

g o

utc

om

es.

5.

Fin

ancia

l re

gula

tions r

evis

ed

6.

Confirm

chang

es t

o g

overn

ance a

rrang

em

ents

and a

mended d

ocum

enta

tion, to

be a

ppro

ved

at

AG

M.

7.

Mem

bers

hip

of

com

mitte

es t

o b

e a

ppro

ved a

t A

GM

5.

Full

revie

w

req

uired d

ue

to s

enio

r m

anag

em

ent

chang

es

6.

22 S

ept 2015

7.

22 S

ept 2015

H5

H7

H8

A14

A15

Bo

ard

meeti

ng

eff

ecti

ven

ess

Chair t

o intr

oduce r

eport

s a

nd

sum

marise the s

ignific

ance o

f th

e

item

and a

ny p

revio

us

dis

cussio

n/s

cru

tiny t

o c

learly

info

rm B

oard

mem

bers

of th

e input

req

uired fro

m them

.

Board

mem

bers

to c

onta

ct

off

icers

w

ith r

eg

ard

to d

eta

il in

report

s p

rior

to B

oard

meeting

s

Fin

ancia

l and n

on-f

inancia

l perf

orm

ance r

eport

s to b

e b

roug

ht

tog

eth

er

at

Board

.

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ark

ag

enda c

onte

nt

and

report

tem

pla

tes

Cash f

low

report

ing t

o B

oard

fro

m

April 2015.

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em

ent te

am

to look a

t str

ength

enin

g b

usin

esses c

ases

and e

xit s

trate

gie

s w

hen

pre

senting

pro

jects

to B

oard

.

Ong

oin

g m

onitoring

info

rmation o

f risk n

eeds t

o b

e p

rovid

ed t

o t

he

Board

by o

ffic

ers

.

ME

DIU

M

1.

Pro

vid

e C

hair w

ith s

um

mary

of

report

s,

sig

nific

ance o

f item

, any b

ackgro

und to t

he

item

i.e

. pre

vio

us d

iscussio

n/s

cru

tiny a

nd a

cle

ar

indic

ation o

f th

e input re

quired fro

m

Board

.

2.

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ark

ing o

ther

RP

/ALM

O’s

ag

enda

conte

nt and r

eport

tem

pla

tes

3.

Report

s t

o B

oard

am

ended t

o r

eflect

impro

vem

ents

req

uired i.e

. bring

ing

tog

eth

er

financia

l and n

on

-fin

ancia

l in

form

ation,

dashboard

of

indic

ato

rs, suite o

f financia

l covenants

, m

onitoring o

f risk info

rmation a

nd

str

ength

enin

g b

usin

ess c

ases a

nd e

xit

str

ate

gie

s w

hen p

resenting p

roje

cts

F

inancia

l and n

on-f

inancia

l in

form

ation n

ow

pre

sente

d t

o B

oard

, dashboard

in d

evelo

pm

ent

LA

TE

R

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p a

nd p

ilot

a m

echanis

m for

Board

m

em

bers

to h

ave g

reate

r com

munic

ation

with o

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on d

eta

il of

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s p

rior

to B

oard

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eeting

.

1.

16 J

une 2

015

2.

22 S

ept 2015

3.

22 S

ept 2015

Outs

tandin

g

Outs

tandin

g

Page 55 of 81

H2

H5

H7

A14

Tra

inin

g

Tra

inin

g r

eq

uirem

ents

whic

h w

ould

str

ength

en u

nders

tandin

g o

f ro

le

and r

esponsib

ilities inclu

din

g

financia

l ele

ments

to b

e fed into

annual Learn

ing &

Develo

pm

ent

pla

n.

Tra

inin

g o

n r

ole

s a

nd

responsib

ilities lin

ked to p

ers

on

specific

ation to b

e c

om

ple

ted b

y a

ll B

oard

mem

bers

on a

ppoin

tment

and p

eriodic

ally

on r

e-

appoin

tment.

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e o

f le

arn

ing a

nd

develo

pm

ent

options t

o b

e

pro

posed to B

oard

(tr

ain

ing,

exte

rnal fa

cili

tato

rs &

consultants

)

Str

eng

then the s

kill

s b

ase o

n

Fin

ance a

nd R

esourc

es

Com

mitte

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oard

assure

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suff

icie

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tiny a

nd

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ng

e.

Identify

best

pra

ctice in o

ther

ALM

O/R

P t

o e

nhance learn

ing

ME

DIU

M

1.

Benchm

ark

ing w

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ther

RP

/ALM

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on t

he

train

ing a

nd e

nhanced learn

ing o

ffere

d t

o

board

mem

bers

2.

Tra

inin

g a

nd d

evelo

pm

ent

options p

resente

d

to B

oard

for

com

ment

3.

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annual le

arn

ing a

nd d

evelo

pm

ent

pla

n f

or

2015/2

016 t

o inclu

de t

rain

ing

on

str

ength

enin

g f

inancia

l unders

tandin

g a

nd

abili

ty t

o s

cru

tinis

e a

nd k

ey t

rain

ing lin

ked t

o

role

description

4.

Report

to B

oard

annually

on learn

ing

and

develo

pm

ent

undert

aken inclu

din

g

att

endance b

y b

oard

mem

bers

, fe

ed into

in

div

iduals

appra

isals

.

1.

28 J

uly

2015

2.

28 J

uly

2015

22 S

ept 2015

3.

22 S

ept 2015

2 F

eb 2

016

4.

Annually

H4

H5

Ap

pra

isal

A r

evis

ed B

oard

appra

isal and

develo

pm

ent

pro

gra

mm

e is

req

uired, w

hic

h w

ill b

e lin

ked t

o t

he

role

description a

nd p

ers

on

specific

ation.

Board

mem

bers

appra

isals

(lin

ked

to p

ers

on s

pecific

ation)

to f

eed into

th

e a

nnual le

arn

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nd

develo

pm

ent

pla

n.

ME

DIU

M

1.

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isal &

Develo

pm

ent

pro

cess r

evis

ed t

o

reflect jo

b d

escription a

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kill

s m

atr

ix,

and

linked into

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& d

evelo

pm

ent

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n

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31 D

ec 2

015

Outs

tandin

g

6

Page 56 of 81

H2

H3

H4

H13

As

sessm

en

t o

f g

overn

an

ce

Eff

ecti

ven

ess

Assessm

ent

arr

ang

em

ents

in

clu

ded in I

nte

rnal A

udit a

nnual

pla

n.

Directo

rs r

eport

to inclu

de a

sta

tem

ent of

com

plia

nce w

ith t

he

govern

ance d

ocum

ents

.

All

govern

ance d

ocum

ents

made

availa

ble

on t

he intr

anet

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rnal in

dependent re

vie

w t

o b

e

schedule

d f

ollo

win

g A

GM

2016 t

o

assess h

ow

successfu

l th

e n

ew

arr

ang

em

ents

have b

een

imple

mente

d.

Com

ple

te g

overn

ance r

evie

w

annually

and/o

r m

ake s

tate

ment

in

annual re

port

.

ME

DIU

M

1.

Govern

ance r

evie

w inclu

ded in I

nte

rnal A

udit

2015/1

6 p

lan

Req

uest m

ade to b

e s

chedule

d into

2016/1

7

pla

n o

nce n

ew

str

uctu

re e

mbedded in.

2.

Annual re

port

to inclu

de s

tate

ment of

com

plia

nce

3.

Govern

ance p

ag

e o

n intr

anet re

freshed to

inclu

de a

ll g

overn

ance d

ocum

ents

LA

TE

R

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rnal in

dependent re

vie

w t

o b

e s

chedule

d

follo

win

g A

GM

2016

Com

ple

te g

overn

ance r

evie

w a

nnually

1.

22 S

ept 2015

2.

22 S

ept 2015

3.

22 S

ept 2015

H5

Su

ccessio

n p

lan

nin

g

S

uccessio

n p

lannin

g o

f senio

r executives t

o b

e u

ndert

aken.

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W

1.

Successio

n p

lan o

f senio

r executives d

evis

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o b

e c

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ple

ted in c

onju

nction w

ith

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em

ent re

vie

w

1.

31 D

ec 2

015

Outs

tandin

g

H9

Au

dit

A

nnual re

port

of th

e A

udit

Com

mitte

e C

hair t

o B

oard

to b

e

enhanced,

by p

resenting t

o t

he

Board

annually

to g

ive h

is

independent

vie

w o

f th

e

eff

ectiveness o

f th

e r

isk fra

mew

ork

and c

om

ment

on a

ny a

reas o

f str

ength

or

weaknesses o

r concern

s

on t

he f

utu

re d

irection.

LO

W

1.

Annual A

udit C

om

mitte

e r

eport

to the A

GM

to

inclu

de independent

vie

w o

f eff

ectiveness o

f risk fra

mew

ork

inclu

din

g s

trength

s/

weakness/ concern

s

1.

22 S

ept 2015

H11

Co

ntr

acts

C

om

pany S

ecre

tary

to log a

ll are

as

of

the b

usin

ess e

nte

ring

into

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s

contr

acts

and s

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up a

centr

al

reg

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r w

ithin

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overn

ance

depart

ment.

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W

1.

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s c

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act re

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hed

1.

1 O

ct

2015

Page 57 of 81

H1

Co

de o

f g

overn

an

ce

T

he C

om

pany S

ecre

tary

to c

ontinue

to m

onitor

code o

f g

overn

ance f

or

any f

utu

re c

onsultations o

r re

vis

ions

to the G

oo

d G

overn

an

ce S

tan

dard

fo

r P

ub

lic S

erv

ices,

and e

nsure

kept

up t

o d

ate

.

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1.

Ong

oin

g g

overn

ance c

om

plia

nce r

evie

w a

s

part

of

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pany S

ecre

tary

role

and

responsib

ilities.

1.

Ong

oin

g

6

Page 58 of 81

Board 8 December 2015 (5.00pm to 7.25pm)

Present: O Grant (Chair), P Dibbs, P Dutton, L Doherty, V Dunn, D Huddart, J Purvis, J McCarty, A Mirza (until 6.15), T Moore, M Page, J Reid, J Streather, L Stephenson, E Snaith (from 6.00), M Talbot, L Wilson.

In attendance:

J Davison Company Secretary

N Scott Senior Director & Director of Tenancy Services

S Breslin Assistant Chief Executive & Director of Corporate Services

D Langhorne Director of Property Services

L Forrest Head of Finance

D Creighton Executive Assistant to the Chief Executive

J Urwin Head of Housing Options

R Clark Care Services Manager

P Lumsden Health and Safety Manager

J Vinton Head of Assets and Regeneration

I Gallagher Head of Property Maintenance

B Elder Strategic HR Manager

A Senior Newcastle City Council (until 6.10)

430 WELCOME

The Chair welcomed everyone to the meeting.

431 APOLOGIES

Apologies were received from P Scope and D Slesenger.

432 DECLARATIONS OF INTERESTS

No interests were declared

433 MANAGEMENT AGREEMENT

Submitted: Report by the Director of Corporate Services (previously circulated, copy attached to Official Minutes).

Sheila Breslin introduced the report, explaining this was the third time the Management Agreement had been brought to Board, and additional sessions had been provided for those members who wanted to discuss the agreement in more detail.

Sheila Breslin informed the Board there had been minimal changes to the main

7

Page 59 of 81

section of the agreement since the last version was circulated, and the final proofing would be completed on the schedules. The main part of the agreement was the contractual part, and the appendices/schedules contained areas subject to annual review. The NCC capital programme was to be agreed at January cabinet, the fee would be agreed as part of NCC budget processes and the YHN Delivery Plan would be brought to the March Board meeting.

The Chair questioned what minor changes had been made to the agreement. Sheila Breslin responded that these had been proof read and changes were typically pagination, cross references, and plurals. Discussions with NCC had been around the agreement of how service charges would be paid, and all issues had been resolved.

RESOLVED, the Board agreed to;

The content of the main part of the management agreement and noted the next steps in section five of the report.

434 HEALTH AND SAFETY SIX MONTHLY REPORT

Submitted: Report by the Director of Corporate Services (previously circulated, copy attached to Official Minutes).

David Langhorne introduced the report which outlined Board members’ responsibilities and reported on Health and Safety (H&S) accidents and incidents.

David Langhorne also provided Board members with an update on recent major incidents.

Dean House suspected carbon monoxide incident – the work is underway to remove the drying cabinets from 10 multi storey blocks which affects 882 properties with only 200 outstanding. BCE have worked very quickly to ensure this programme of works is completed.

Iris Steadman House – Following the incident of a resident falling in her home which was undergoing refurbishment works, sadly the resident has passed away. David Langhorne explained this incident is under legal privilege as a claim is still outstanding with the sub-contractors, but assured the Board that YHN had complied with all H&S duties.

St Anne’s scaffolding collapse during high winds – the HSE had been informed and a report submitted by the contractors, measures were put in place and the HSE were happy for the site to re-open.

Craster Square – sink hole appeared adjacent to the garages which is suspected to be a mine air shaft. No further updates for Board at this time as the Coal Authority are still undertaking investigations.

Recent high winds have also damaged YHN properties, with a house in Warrington Road losing its roof and a garage block in Tumulus Avenue also losing part of the roof. Two residents have been decanted whilst the structure of the house is surveyed, and the garage block will most likely be demolished.

Section six of the report outlined new legislation regarding corporate manslaughter and David Langhorne assured the Board the implications of this would be included in the H&S training session for Board members.

Page 60 of 81

Questions/Comments

A Board member questioned when the next meeting of the H&S committee would be, and another Board member expressed interest in attending these meetings. Paul Lumsden to action.

A Board member questioned the statistics on incidents to employees and enquired what animal related incidents were. Paul Lumsden confirmed these were mainly dog related incidents.

Doreen Huddart declared an interest as she occupies one of the garages affected by wind damage.

A Board member referred to Board’s roles and responsibilities in section three, and asked whether this crossed over to tenants, with regard to contractors carrying out work in their homes, and what steps we made to promote H&S and draw to tenants attention the work being carried out. Paul Lumsden responded that the capital investment team complete a lot of tenant liaison work, talking to tenants and explaining the work being completed, if the work is major then tenants would be decanted to a safe property until complete. With regard to day to day repairs, the organisation relies on competent workers to inform tenants of the possible dangers.

A Board member questioned whether the new corporate manslaughter legislation would be included in the risk register. Neil Scott to action.

A Board member commented that in section 4.3 aggressive / threatening / intimidating behaviour and verbal abuse was the main area of concern and that racial discrimination should be reported under the business implications for equality and diversity. RESOLVED, the Board;

Received and commented on the report

435 MINUTES OF 3 NOVEMBER 2015

A Board member thanked the officers for including further information in the minutes with regard to the breakdown of why tenancies are terminated, commented that the biggest area was internal transfers and enquired how this is being addressed. Neil Scott responded that the Voids time limited committee would be investigating this area and their first meeting was on the 10 December. YHN were also jointly working with NCC to review the lettings policy. RESOLVED that the Board;

Considered the minutes of the meeting held on 3 NOVEMBER 2015 and approved them as a correct record.

436 ITEMS FOR INFORMATION

437 SAFEGUARDING REPORT

Neil Scott briefly outlined the report which included annual update for Board in relation to safeguarding alerts and safeguarding training across YHN.

7

Page 61 of 81

A Board member commented that they were pleased to see the learning and development being achieved in this area, and questioned section 3.2. It stated that YHN staff are involved in many more cases than just those which are recorded as YHN referrals, and the Board member queried could we refine the performance data and ensure these cases are recorded so it can be seen how many cases in total staff are working on. Neil Scott responded that we are working much more in partnership but could not record other agencies referrals just our own. Whilst the increase in referrals may look worrying, this is a positive indication that the system is working much better and the staff are more aware of safeguarding issues.

438 RESOLVED – That the following items be received for information:

8ii) Delegated Decisions

8iii) Board Forward Plan

8iv) Committee Minutes: Audit Committee 20 August 2015

439 EXCLUSION OF PRESS AND PUBLIC

RESOLVED – That in accordance with the organisation’s Access to Information provisions, the press and public were excluded from the meeting during the consideration of all further agenda items.

………………………………………..

Mrs O Grant

Chairman

2 February 2016

Page 62 of 81


Universal Credit

Report by Senior Director

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 November 2015. This details the progress the implementation project has made and learning from the initial roll out for single people on UC.

1.2 The Department for Work and Pensions (DWP) key reform, Universal Credit, will replace six benefits with a single monthly payment. It is currently being rolled-out, largely for Job Seekers Allowance (JSA) claimants who are single, and three jobcentres are currently operating the digital service. The DWP expects UC to simplify the benefit system and make it less open to mistakes.

1.3 Housing Benefit (HB) will eventually be replaced by the housing element of UC and will be paid directly to the tenant. The housing element is likely to be a large component of a claimants monthly benefit income, so inaccuracies can cause challenges. If too little is paid, a claimant may be unable to meet their housing costs and may incur debt with their landlord. If too much is paid, then this money is deducted from subsequent payments, resulting in a lower amount each month until the overpayment is recovered.

2 Implementation

2.1 National Position

287,310 people had made a claim for universal credit up to 3 December 2015.

186,645 (12 November 2015), attended an initial interview, accepted their claimant commitment, and moved on to UC;

155,568 people were in receipt of UC as of 12 November 2015. Of these, 51,076 (or 33 per cent) were in employment and 104,490 (or 67 per cent) were not in employment.

8i

Page 63 of 81

2.2 Newcastle Position

As at 3 December 1,464 residents of Newcastle have claimed UC as shown in the table below.

Age Range Male Female

Newcastle City

16-24

365 165 25-49

50+

Newcastle West 16-24

421 186 25-49

Newcastle East 16-24

237 90 25-49

3. Progress of Universal Credit Delivery

3.1 National rollout of the UC live service started on the 16 February 2015. The DWP report that it is now available in almost 550 jobcentres; three quarters of the total national network. By April 2016, UC will have been rolled out to every jobcentre and local authority in Great Britain.

The government’s driver to accelerate other groups being moved onto UC is the digital service. The DWP began testing the full UC service in November 2014. The full service provides more online features, giving claimants greater control over their UC claim, with one on-line account for payments, reporting changes of circumstances, and receiving job alerts and work coach feedback.

3.2 The DWP have confirmed that from May 2016, they will be launching the full service. This means that where the full service is in place people will be unable to make new claims to benefits under the old system.

There will be a staggered approach and contrary to earlier claims by the DWP that this would only be a ‘make scalable’ pilot, it has since been confirmed that it will be the live service. In Newcastle, this means that the City Job Centre will be going live from the 23 May 2016.

For council tenants, this will mean that any new claims for Income related Employment Support allowance; Income Support and new claims for Housing benefit and tax credits will now be treated as Universal Credit claims and administered by the DWP.

We have requested anticipated numbers of those who may be affected and to date the DWP have been unable to provide this. YHN has received assurances from the Partnership Manager of the local job Centre Plus Office that they will endeavour to provide some anticipated numbers and we will provide board with an update as soon as we are able.

Currently, there has been no mention of how they plan to migrate existing UC claimants onto the live system.

Page 64 of 81

4. Spending Review and Autumn Statement 2015

The government announced at the summer budget the aspiration to move Britain into a higher wage, lower tax, and lower welfare society. At this time the government announced the introduction of the National Living Wage, an increase in the income tax personal allowance and welfare reform. The Spending Review and Autumn Statement sets out the next stage of these reforms.

4.1 Tax Credits and Universal Credit

The Working Tax Credit reductions in April 2016 as announced in the Summer Budget 2015 have been rescinded; however, the equivalent cuts to Universal Credit will go ahead in April 2016. Those transferred by DWP from Tax credits to Universal Credit will receive transitional protection.

From April 2016, the amount a tax credits income can increase in-year compared to their previous years income before their award is adjusted will be reduced to £2,500

There will be a two child limit and loss of the family premium in Child Tax Credit and equivalent in Universal Credit from April 2017

In UC, the minimum Income Floor for the self-employed will be in line with the National Living Wage instead of the National Minimum Wage.

4.2 Housing Benefit

The government stated that spending on Housing Benefit (HB) increased by 46% during 1999-2000 and 2010-2011 reaching £21.4 billion. Significant changes to HB were already announced in the Summer Budget and the spending review and autumn statement makes further reforms.

There will be a cap on the amount of rent that HB will cover in the social sector to the relevant Local Housing Allowance which the rate is paid to private renters on Housing Benefit. This will include the shared accommodation rate for single claimants under 35 who do not have dependent children. In Newcastle, the rate for this group is £60.00 per week. This will apply to tenancies signed after 1 April 2016, with HB entitlement changing from 1 April 2018 onwards.

There will be a limit on housing benefit and Pension Credit payments to four weeks for claimants who are outside of Great Britain from April 2016. (currently claimants can go abroad for up to 13 weeks while continuing to receive HB)

4.3 Employment Support

The government aim to do more to get people into work and make the system fairer. By 2020, Universal Credit will extend work support and conditionality to an extra 1.3 million claimants.

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Jobseekers will be required to attend the jobcentre on a weekly basis for

the first three months of their claim and the Help to Work Programme

will be brought forward.

Increased funding to help people with disabilities and health conditions to get work and remain in work. For example, a new Work and Health Programme will be introduced when the current Work Programme and Work Choice contracts end, to provide specialist support for claimants with health conditions and those unemployed for two years.

From 2017, local areas, including the North East, “will work with the Department for Work and Pensions to co-design employment support for harder-to-help claimants”.

5. YHN Implementation Response

5.1 Universal Credit Implementation Project and Action Plan

YHN are aware of 201 tenants currently claiming UC, the rent collection rate for these tenants is currently 79.3%. The Income Recovery Officers who are acting as UC specialists are continuing to provide support to tenants to maximise rental income. Following the confirmation of the digital service being live in the City Job Centre, we will be working towards a planned, staggered approach to upskill other frontline staff in preparation for more people claiming UC.

5.2 Universal Credit Project Plan

5.2.1 In the last Board report members were advised that the UC Project Plan was being reconfigured. Board should be aware that the constant changes of timescales from the DWP for implementation and the changes following the autumn statement, planning can be difficult and we need to work flexibly in order to overcome this.

5.2.2 The revised action plan objectives are;

Income is maximised for our landlord clients and customers that have been affected by welfare reform changes, with rent loss minimised.

Our relationships with partners are developed, which means that duplication of effort is reduced. The knowledge of our staff is improved and they can give customers accurate advice or know where to refer them to.

For YHN services and budgets that support customers, a higher proportion of their resources are directed at customers that need support and present an immediate and financial risk.

Customers affected by welfare reform changes are supported to pay their rent and other obligations and are able to access services which meet their needs.

Board and Management teams have confidence in our approach, are aware of their current risks and opportunities, and learning from the process is captured and shared.

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6. Partnership Working

YHN continue to work in partnership with the Council and other partners to develop learning. Board will recall that as part of the Delivery Partnership agreement between the DWP and City Council YHN are delivering an element of personal budgeting support for council tenants.

YHN have continued to test the benefits of co-locating with the three job Centres in Newcastle. We are currently working on a joint report with the DWP and NCC to consider the benefits of extending this pilot for 2016/17.

The city council have established a welfare reform operational group to support and test the alignment of care and support services to respond to the integrated demands of welfare reform. The aim is to develop and deliver a longer term programme of work to respond to and mitigate the impact of welfare reform. YHN’s Head of Support and Care and UC Implementation Manager are both representatives from YHN on this group and once work is programmed board will be updated on activity.

6.1 Personal Budgeting Support

Under UC, most households will receive a single, monthly benefit payment, including where applicable, a housing element. The aim of the monthly payment is to replicate payment of wages and therefore ease the transition from benefits into work. It is however, a major change for many households used to dealing with a large number of smaller payments with HB paid directly to their landlord. Personal Budgeting Support (PBS) has two elements: Alternative Payment Arrangements (APA’s) and money advice.

Currently YHN officers have assisted 72 tenants with personal budgeting support as a result of making a claim for UC.

6.2 Alternative Payment Arrangements

Alternative Payment Arrangements (APA’s) are available in circumstances for claimants who are unable to manage their monthly payment. YHN have applied for 57 APA’s to receive the housing element as a ‘managed payment to landlord’.

All applications have been successful with one tenant improving their circumstances with support from the UC specialists. The APA has since been reviewed and cancelled with the tenant paying monthly by direct debit.

6.3 Universal Credit Trusted Partner Pilot

The UC trusted partner pilot builds on the DWP’s commitment to working with landlords to help those claimants who need support to manage their direct payment of rent as part of a UC claim. The pilot is a product of joint working between the DWP and social rented sector to develop an approach that ensures those tenants who need support receive it.

In March 2015 the DWP carried out an eight week proof of concept test with six North West social landlords. The test set out to establish if the trusted

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partner concept created better opportunities for joined up working resulting in a better outcome for the claimant. As a result of the test the DWP have decided to progress to a larger pilot extending out of the North West to include other areas in England, Scotland and Wales.

6.3.1 The aim of the UC trusted Partner Pilot is to understand and assess the process whereby social landlords identify vulnerable tenants who may struggle to cope with paying rent direct to them, and make appropriate recommendations for a direct payment of housing costs known as an Alternative Payment Arrangement (APA). The pilot will test whether;

The end to end APA process provides a good experience for claimants and staff, and is suitable for national implementation

There are any gaps, for example, in the provision of support services locally

Support can be easily co-ordinated between trusted partners and DWP

Trusted partners are able to undertake APA reviews

The process is affordable in both resource and time for landlords and DWP

6.2.2 In November 2015, the DWP allowed landlords to express their interest in being part of the trusted partner pilot. Following the expression of interest, YHN have been selected to be one of twenty landlords nationally to take part in the trial.

An initial set up meeting has taken place with the DWP and the trial is expected to commence at the end of February 2016 lasting six months. This is a unique opportunity for YHN to influence policy and how the trusted status would work once rolled out nationally.

7. Policy in Practice (PiP)

7.1 As mentioned in previous board updates, YHN and NCC have worked with Policy in Practice to look at the cumulative impact of welfare reform for both Newcastle residents and tenants of council properties managed by YHN.

YHN have been working through via the UC project group and with NCC how we use this information to target support to households who are hardest hit by welfare reform. The project group has agreed to target those currently affected by the under occupation charge ‘bedroom tax’ and those who will be faced with the reduced benefit cap.

The objectives of this targeted work;

Using the information available ensure tenants understand the impact of future reforms

Support tenants with budgeting and maximising income both on their current circumstances and in the future depending on what further reforms they may face.

Ensure those that are masked by repeated Discretionary Housing Payment applications have support to improve their circumstances or understand their obligations to pay their rent.

Update demographic and household data on IT systems so

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information and support can be easily provided to them in the future

Reduce rent arrears

Improve their personal circumstances where available to ensure they do not pose a risk to rental income.

8. Internal Audit

8.1 We have commissioned Internal Audit to review the effectiveness of the arrangements in place for managing tenants in receipt of universal credit.

The audit will assess whether significant risks in relation to managing tenants in receipt of universal credit are adequately and effectively controlled through examination of the following system objectives:

There is a project plan covering implementation of universal credit and YHN’s response to this which is reviewed and updated in light of lessons learned as implementation progresses.

All tenancies affected by universal credit can be clearly identified and appropriate arrangements are in place to support tenants and minimise risks of non-payment of rent.

Where appropriate, Alternative Payment Arrangements (APA’s) have been agreed and relevant support is provided to address the underlying issues.

Appropriate, relevant performance management arrangements have been established and effective monitoring takes place.

Procedures are in place to achieve value for money and identify efficiency.

The current mechanisms used to predict future numbers of tenancies to be affected by universal credit to determine if it seems relevant and considers all relevant factors.

It is anticipated that the audit findings will be presented to Audit committee in May 2016.

As the audit progress board will be kept informed throughout UC updates.

9 Income Management Strategy

9.1 Progress is being made with the Income Management Strategy action plan.

Direct debit continues to be our preferred payment method and the number of rent direct debit payers has increased by 30% year to date to 8,006. We expect to achieve our target for rental income collection for this financial year.

The cashiering service was withdrawn at the end of November and the preparation work that was undertaken ensured a smooth transition to alternative payment method for tenants. We have encouraged tenants to pay by direct debit and the online payment service has now been upgraded to provide a more user friendly customer experience. For tenants who prefer to pay by cash they can do so at Pay Point outlets and post offices

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across the city. We are able to print bar codes so that tenants now have an immediate way to pay rather than waiting for their swipe card to arrive.

10. Business Implications

10.1 Purpose and objectives

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

Make the money deliver

Work together to create a brighter future.

10.2 Value for money and efficiencies:

The implementation project includes actions that are intended to ensure we deliver efficient services that are value for money. As part of the revised project plan we are looking at how services work together in will look to calculate the impact UC has on current service delivery.

10.3 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 are currently drafting feedback to the city council on expenditure for 2015/16 and anticipated additional costs for 2016/17.

10.4 Impact on services / performance

The collection rate for tenants who have been transferred to Universal Credit is being monitored separately and as expected arrears for this group are above average with a collection rate of 79.3%. This figure is showing an improving weekly trend which is expected to continue. The overall collection rate for all tenants including UC claimants is currently on track at 99.26% which is ahead of the seasonally profiled target of 99.18%

10.5 Outcome for tenants/leaseholders

A large percentage of council tenants and leaseholders will be affected by Universal Credit. Currently over 65% of working age tenants are currently in receipt of Housing Benefit and will be responsible for managing a monthly payment and paying their rent directly to YHN.

10.6 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. The trusted pilot does present a unique opportunity to build positive relationships with the DWP and influence how landlords can assist tenants and protect rental income.

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10.7 Environmental

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

10.8 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 and further updates will be brought back to Board.

10.9 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.

10.10 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.

11. Conclusion and recommendations

11.1 Board is recommended to

Note progress made on delivery of the Universal Credit Implementation Project.

12. Implementation

12.1 Reports will be brought back to Board on a quarterly basis during 2016.

Background Papers Universal Credit report to YHN Board February 2015 Universal Credit report to YHN Board May 2015 Universal Credit report to YHN Board July 2015 Universal Credit report to YHN Board November 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 [email protected]

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Stonewall Workplace Equality Index 2016

Report by Director of Corporate Services

For information

1. Background information

1.1 The Stonewall Workplace Equality Index (WEI) is an evidence-based benchmarking tool used by employers to assess their achievements and progress on LGBT equality in the workplace.

It has been compiled by Stonewall, the national charity for lesbian, gay, bisexual and transgender (LGBT) rights, for the last 12 years and the 2016 index saw the highest response rate from employers.

415 organisations across the country took part, demonstrating their expertise in ten areas of policy and employment practice, including network groups, career development, training and community engagement.

2. YHN’s position in the index

2.1 YHN has taken part in the Stonewall Workplace Equality Index since 2008.

This year, we were placed at number 36 in the list, a jump of 62 places from 2015. We also know that our point score has increased by almost 20% from last year, rising from 110 to 149 points out of a possible 200.

We were one of only seven housing organisations to place in the list and came in the top five.

3. YHN’s performance within the index

3.1 Although we are yet to receive detailed feedback from Stonewall about our performance across the various parts of the WEI, in previous years YHN has consistently scored highly in the following areas:

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Employee policy;

Monitoring;

Network groups, and

Staff and community engagement.

Since receiving our feedback in 2015, officers have been working to implement actions to improve our performance across all areas of the index.

4. Further feedback

4.1 Stonewall assessors will be visiting YHN to provide further feedback on YHN’s performance in the index on Wednesday 24 February 2016. Any feedback on areas for improvement will be incorporated into the revised action plan for the Equality and Diversity Strategy for 2016-17.

Background Papers The full Stonewall Workplace Equality Index (also often referred to as “Top 100 Employers” is available on the Stonewall website at https://www.stonewall.org.uk/ Contact Officer: If you have any questions about this report that you would like clarifying before the meeting, you can contact Louise Horsefield by telephone on 0191 278 8720 or email [email protected]

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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 15 March 2016 (or amended date subject to confirmation):

Board Reports

Delivery Plan Non-confidential

Anti-Slavery & Human Trafficking Statement Non-confidential

Budget 2016/17 Non-confidential

Five Year Plan & Stress Testing Confidential

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 [email protected]

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Service and Strategy Delivery Committee 1 December 2015 (5.00 pm - 6.45 pm) Present: P Dutton (In the Chair) E Snaith, M Page, V Dunn, J Streather, L Doherty In Attendance:

D Langhorne - Director of Property Services J Vinton - Head of Assets and Regeneration J Urwin - Head of Housing Options B Elder - Strategy HR Manager A Pearce - Assets and Programme Manager M Pearson - Regeneration Project Co-ordinator L Riley - Service Quality Officer C Patterson - Democratic Services Officer

1 WELCOME AND INTRODUCTIONS The Chair welcomed everyone to the meeting and introductions were provided.

2 APOLOGIES FOR ABSENCE Apologies for absence were received from Julie Purvis and Jane Streather for lateness.

3 APPOINTMENT OF VICE CHAIR RESOLVED - That Lisa Doherty be appointed as Vice Chair of the committee for 2015/16.

4 DECLARATIONS OF INTERESTS During discussions on the Housing Investment Programme – progress update and impact of the future rent reduction (Agenda Item 8), Jane Streather and Veronica Dunn declared a personal interest being Cabinet members for Newcastle City Council.

5 PURPOSE OF THE COMMITTEE AND PROPOSED AREAS OF BUSINESS - PRESENTATION A presentation was delivered by Director of Property Services on the remit of the committee and the proposed areas of the business. D Langhorne circulated

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additional information in the form of a diagram which highlighted responsibilities for the management team; YHN and the committee. During discussions the following main points were raised:

Clarification was provided around how the forward plan was drawn up and the process in which issues were added.

Concerns were expressed around the committee’s role, particularly around service reviews and strategies. It was reported that the committee would have a proactive role in both areas, particularly around setting improvements and monitoring progress. The committee was reminded that all business was reported through to Board, giving members a further opportunity to consider matters.

Reference was made to the terms of reference and purpose of the committee with comments raised around the wording not being implicit enough around the committee’s purpose and role. A request was made to seek some clarity about this and on whether this committee could influence the scope of reviews on service delivery and strategies. It was confirmed that in terms of the service review the committee had a definite direct role to influence. The scope of reviews would be presented to the committee for discussion prior to being commenced.

Jane Streather arrived at 5.15pm

Reference was made to update reports on reviews that were included the forward plan with queries raised around who had input into these reviews. It was explained that these two particular reviews were already underway prior to the restructuring. A request was then made to circulate a list of all the reviews underway and these that were to be planned. It was explained that this information was still in the planning stages but an early draft copy of the plan could be circulated. ACTION.

Queries were raised around the strategic oversight responsibility for measuring and assessing performance of YHN in relation to the management fee and how this all linked. It was explained that this was this committee’s responsibility. The list was not exhaustive. Low level key performance indicators were being developed including measures around ALMO business.

RESOLVED – That the presentation be received and information and the committee’s comments noted.

6 GOVERNANCE ARRANGEMENTS - TERMS OF REFERENCE AND MEETING DATES A report by the Company Secretary was considered on the terms of reference for the committee; the areas of responsibility and the schedule of meeting dates proposed for 2016. The Chair pointed out that paragraph 3.1 of the report stipulated meetings were every quarter but were in fact every six weeks. Further to earlier discussions, he explained that the terms of reference would be reworded to be more explicit around the committee’s purpose and that it would be resubmitted for approval at the next scheduled meeting. ACTION.

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RESOLVED – That (i) The terms of reference be received and reconsidered at the next scheduled

meeting as outlined above. (ii) The committee’s responsibilities be reviewed annually. (iii) The schedule of meetings for 2016 be noted.

7 FORWARD PLAN A copy of the work plan to November 2016 was presented for consideration. The Chair explained that the plan was a fluid document and welcomed ideas for the May 2016 bus tour. During the committee’s review of the work plan the following points were raised:

Reference was made to the Annual Letting Review Action Plan to be considered by the committee in April 2016. In response to queries on the Board’s agreement to set up a task and finish group, it was explained that the Board had agreed the task and finish group would consider the whole end to end process. The committee would report to the Board. The company secretary was overseeing where each item needed to be considered and how all the committees linked and worked with the Board

Reference was made to the lack of reference in the forward plan about the medium term financial planning. It was explained that this would be part of the information provided via the Finance Strategy presentation to be delivered to committee in May 2016; however, ratification would be provided that the medium term financial planning was to be considered by the Board and when it was programmed to be considered. ACTION

Reference was made to the fact there would only be two occasions when HR matters would be considered by the committee, which was a fraction of time that previously such matters were considered at Finance and Resources Committee. It was explained that HR issues may also be presented to the Board for consideration, giving the committee members other opportunities to have input. The Chair reiterated that the forward plan was a fluid document that could be changed throughout the year, if issues arose and it was deemed necessary to present to committee.

Following a comment being raised about having a clearer understanding about the actual content of each item to the considered by the committee during the year, it was agreed that a revised Forward Plan that provided more detailed information on the proposed content of each item would be circulated in advance of the next meeting. ACTION

Comments were made around the non- establishment of a Finance and Resources Committee and the reasons for this. It was suggested that clarification be circulated on the discussions held at the Away Day and the Board’s thinking and decision around this. ACTION

RESOLVED – That the work plan be received and comments noted.

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8 HOUSING INVESTMENT PROGRAMME - PROGRESS UPDATE AND IMPACT OF THE FUTURE RENT REDUCTION. A report by Head of Assets and Regeneration, which provided information on the progress to date of the 2015-16 investment programme and the impact of the proposed rent reduction was submitted for consideration. D Langhorne explained that the report provided clarity around the sense of scale and impact that was being proposed, pointing out that further discussions with Newcastle City Council (NCC) was required. During discussions, the following main points were made:

Concerns expressed about the reputational effects and disruption for tenants when delivering an elemental approach. These points needed to be borne in mind when decisions were being made.

There was a need to have detailed consideration on the private finance lease back model option currently being explored by NCC.

Committee was informed that discussions with NCC were around achieving flexibility to support future year programmes.

Clarification was sought around who made the decision about future programmes. It was confirmed that the final decision would be with NCC; however, NCC would be taking in to account YHN’s views. Discussions have been ongoing throughout the review to try to mitigate against different views on priorities. The working relationship between YHN, NCC Finance Team and the Fairer Housing Unit had been good. There was a project recommended for removal from the programme, which was North Kenton new build project where further discussions were perhaps required.

In response to a query around possible resource implications, it was explained that if the programme dropped then there was a potential to review directorate structures but the programme remained sizeable for the first few years.

In response to concerns expressed around residents, it was explained that consultation would be on a year on year basis so residents were not aware of specific dates for future work. The approach was to continue to deliver programmes but at a slower pace to minimise the impact on tenants. There were some concerns around North Kenton new build project but YHN and NCC were looking at opportunities through the private finance lease back mode for new build.

Reference was made to the reserve levels and whether these could be used to support the programme.

Comments expressed about the impact of the reduction and the challenging times ahead in addition to welcoming the amount of work that had been progressed so far.

Reference was made to sheltered housing remodelling in the programme to eradicate bed sits with queries around whether this would still be a priority. It was explained that the Fairer Housing Unit had identified support for vulnerable tenants as a priority are but this would need to be considered in the wider programme review.

In response to a query on the timescales, it was confirmed that the final details were being worked through with NCC. It was hoped a decision would be provided to enable proposals to be presented to NCC Cabinet in January 2016.

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Reference was made to the Board’s earlier decision to earmark reserves with clarification being sought around the level agreed. D Langhorne indicated that he would provide information at the next Board Meeting about the agreed reduction in the reserve levels that was agreed to enable a discussion about the future use of reserves. ACTION.

At this point in the proceedings, Veronica Dunn and Jane Streather declared personal interests as cabinet members at NCC.

Comment were raised around the magnitude of the challenge and the impact of the rent reduction which extended far beyond £563m over 30 years of life cycle. Planning for future programmes was crucial.

Reference was also made to the importance of continuing to develop pipeline projects waiting for opportunities to arise. Hopefully the work done so far had not been done in vein and other forms of funding could be secured.

RESOLVED – That (i) The report be received and the progress to date on the 2015-16 investment

programme be noted. (ii) The comments on the proposed reductions to accommodate the financial

pressures on the investment programme over the next five years be noted. (iii) The committee agree to receive further information on the private finance

model once this had been explored and how this changed the proposed programme.

9 HEALTH AND HOUSING SERVICE REVIEW UPDATE

A report by Head of Housing Options was presented, which provided information on the health and housing service review, following the amalgamation in June 2014 of three service areas: health and welfare assessments, adaptations and relocation support. J Urwin introduced the item, summarising the main aspects. D Langhorne explained that the closure report was programmed for approval by the committee at the July 2016 scheduled meeting. A member suggested that case studies should also be included in the report to demonstrate the outcomes. In response, it was reported that as part of the closure report there would be opportunities to provide real examples of outcomes as suggested. Performance data, including information on time and financial benefits would be fed into the closure report to ensure the committee understood more fully the new service provision. RESOLVED – That the report be received and comments.

10 DATE AND TIME OF NEXT MEETING Tuesday 19 January 2016 at 5.00pm

8v

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Documents

YHN Board non confidential pack 2 February 2016