There was a story in the Mail on Sunday about the head of H&F Homes Nick Johnson saying that he is highly paid. So he is - although the consultancy payment covered not only salary but pension contribution and National Insurance. His predecessor as Chief Executive Billy Rae, who was appointed under the Labour administration was also highly paid.
The point is that Nick Johnson (pictured second from left spending a day with caretakers) has delivered some solid achievements in return for his hefty remuneration.
1. Saving the Decent Homes Government Funding
H&F Homes was on the verge of collapse before Mr Johnson took control. The Audit Commission had given the ALMO one star with no prospects. The Decent Homes programme was failing, and over £200 million of government funding to provide new kitchens and bathrooms for all tenants was being recalled by Government. New action teams were formed, and the programme will now be delivered on time.
2. Attaining Audit Commission high rating
Delivered an Audit Commission inspection result of Two Star status with excellent prospects.
3. Delivering Value for Money
Introduced an intensive Value for Money programme that has been able to reduce revenue costs by £6 million per year by restructuring the whole organisation. If this had not been done rent rises of £6.20 per week for every tenant would have been needed to balance the statutory Housing Revenue Account, which must not go into deficit.
4. Reducing Leasehold charges and arrears
Charges to leaseholders have been reduced in real terms by 15.4% on average, making Hammersmith & Fulham’s service charges now lower than Wandsworth.
5. Cutting the wasteful management hierarchy
A hugely inefficient and expensive top management team of 11 directors has been reduced to 4, with a saving of over £500k in top management salaries alone.
6. Personally covering top management vacancies
Mr Johnson covers the work of the Director of Housing and Regeneration, and two Assistant Director roles within the Council, pending recruitment to those positions, working on large regeneration projects, and with Borough resident groups.
7. Planning to reduce back office waste with a proposal to return the ALMO to Council control
Mr Johnson developed the proposal to bring the ALMO back into Council management. If accepted this will save £1million per year and bring about better direct management by the Council.
8. Improving Resident satisfaction
Even despite management changes and the disruptive Decent Homes programme still not finished, Resident Satisfaction has been improved from 67 to 71%.
Comments