HCA spent £9m shedding quarter of its staff
The Homes and Communities Agency spent more than £9 million on redundancy and restructuring costs during 2011/12 as it cut nearly a quarter of its staff.
Staff numbers at the agency charged with delivering the government’s £1.8 billion affordable homes programme fell from 1,108 to 834.
The HCA’s annual report, which was published yesterday, further revealed that 27 of the 264 ‘exit packages’ agreed for departing staff cost more than £100,000.
The cost-cutting exercise, combined with a reduction in grant payments as a result of the move to the affordable homes programme, saw the HCA cut its total expenditure by more than £2 billion over the year. It spent £2.39 billion in 2011/12 as opposed to £4.41 billion the previous year.
Spending on staff costs, excluding pensions, also fell from £53 million to £40 million
A management commentary on the report from chief executive Pat Ritchie and chairman Robert Napier said that the ‘major part’ of the restructuring was completed in October 2011.
‘That staff at all levels of the agency continued to deliver throughout this period of uncertainty and change is to their huge credit,’ said the commentary.
Paul Spooner, the former executive director for the midlands, was the only senior management figure to receive a redundancy payout during the year after he left the HCA at the end of December 2011. He received just over £111,000.
The annual report also confirmed house building numbers first revealed earlier this month. The HCA exceeded its target of 41,000 housing completions in the year by more than 18,000. However, only 2,197 completions were part of the affordable homes programme, which has targeted 80,000 new homes by 2015.
There were just under 20,000 housing starts made in 2011/12, with more than half of these part of the new programme.