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Peabody to collapse group structure
One of London’s biggest housing associations is planning to collapse both of its landlord subsidiaries into its main asset-holding body in a bid to save cash and improve governance.
Peabody Trust is set to sweep away the boards of 1,600 home-CBHA and 7,000-home Gallions as part of a review of its governance structure. The associations, along with the trusts’ main asset-holding association Peabody, will become one legal entity under a single board.
Peabody would not confirm how much money it expects to save. However, the change would mean pension security could be held against Peabody’s non-social housing assets, preventing CBHA’s projected spend of £5m for nine years on pension costs.
It is also understood that Peabody Group expects the move to provide stronger governance for the organisation.
Gallions, which owns the well-known Thamesmead Estate in south London, merged with Peabody last year, while CBHA became part of the group in 1996.
The decision to collapse CBHA has proven controversial. Housing activists protested against the move last month arguing the move will lead to less tenant control.
In a document sent by Peabody Trust to Waltham Forest-based CBHA, Peabody pledged to protect local services currently run by CBHA. It said: ‘A local charter developed by residents will ensure residents continue to experience a local service.’
Sir Bob Kerslake, former permanent secretary at the Department for Communities and Local Government will take over as chair of Peabody on 1 June.
