Value for Money
We deliver services
efficiently and
effectively and are
confident we offer
you real Value for
Money (VFM) which
means we can build
more homes.
In 2015-16, Thrive
generated over
£700,000 in Value for Money savings. This report shows you what
we have done this year and outlines our plans going forward.
You can read more about Thrive’s Value for Money achievements
in our Financial Statements 2015-16 report on our website at
www.thrivehomes.org.uk/financialstatements
Providing good quality affordable
homes and services enabling the
development of communities
where people enjoy living.
What is Value for Money?
Value for Money is about more than just the price of goods and services.
It’s about the blend of the quality and cost of those goods and services as
well as the careful and timely use of resources. The cheapest option is not
always the best choice.
Achieving value for money comes from balancing economy, efficiency and
effectiveness.
Economy
Efficiency
Effectiveness
Careful use
of resources
to save expense,
time or effort
Delivering
the same level
of service for
less cost, time
or effort
Delivering a
better service or
getting a better
return for the
same amount of
expense, time or
effort
It’s important for both residents and the business that Thrive delivers Value
for Money. Thrive is delivering this by:
• Focusing on working more effectively
• Ensuring that we invest in homes with a long-term future
• Increasing the number of homes we manage.
How did we achieve
Value for Money in
2015-16?
In our report last year we outlined areas of the business
where we believed we could achieve Value for Money
savings and set ourselves targets.
Value for Money performance
What we said
How we did
Comments
Staff changes so as
to reduce the Senior
Manager structure
The Senior Management team
has been reduced by 3 FTE,
which will lead to savings of
£200,000 per annum in future
years.
These changes occurred at various times
during the 2015-16 financial year and so
in year savings are limited.
£280,000
procurement
savings from prior
year procurement
projects
Savings of £282,000 were
achieved on the procurement
of roofs and windows and
doors done in the previous
year.
These are 2 and 5 year contracts that will
continue to deliver savings for part of
2016-17
Savings from
2015-16
procurement
projects
£335,000 of savings generated
from procurements carried out
within the financial year.
These are 2 year contracts to carry
out specified volumes of works (e.g.
kitchens) which will generate further
savings in 2016-17.
New housing
management system
The ‘go-live’ date is now June
2016.
No financial benefits of the new system
have as yet been realised, but some
restructuring has been done early in
the 2016-17 financial year, based on
efficiencies that can be seen from the
new system.
Data cleaning
project and launch
of ‘Positive Resilient
People’
Data cleaning has been
done as part of the housing
management system going
live, as described above.
‘Positive Resilient People’ is
still in the planning phase; but
it is believed some benefits will
be realised.
Future benefits will be determined during
2016-17.
HACT value of grants
issued
Thrive has issued grants of
£79,883 during the year.
Using the HACT social value
calculator (which is the
commonly used measure by
Housing Associations), the
social value of the projects
supported was £22.1 million.
Two of the projects where grants were
issued were for younger people. One
of the projects was about promoting
healthy eating and lifestyle choices;
the other project was aimed at averting
young homelessness. Projects for
younger people tend to give the
largest HACT social value and these
two projects accounted for the largest
portion of the social value.
We have also carried out a number of other actions during the year: these have
included closing the South Oxhey satellite office, running a ‘Dragon’s Den’ type
event to get the best cost saving ideas from all Thrive staff, as well as undertaking an
insulation project at Boundary Way which cost £3.8m, of which £0.8m was funded
by Thrive, with the rest coming from local authorities and grant funding.
Measuring our success
We regularly check how we compare with similar organisations and, working with
our residents’ Scrutiny Panel in the past and with the new Customer Experience
Panel currently as well as independent experts, we carry out a Quality Assurance
Review programme. Key actions are included in our operational plans and regularly
reviewed by our Executive Management Team.
This programme and other external validation means you can be confident about the
way we work and the quality of our services.
Looking ahead
Social Housing is regulated by the Homes & Communities Agency (HCA). During the
year, the HCA published an analysis of the cost of managing and maintaining each
property unit per Housing Association. The analysis was done using the 2014-15
annual accounts of all Housing Associations. Thrive’s cost per unit (CPU) was £3,970
per unit. This is midway between the average and the most expensive. As has been
identified for a number of years, Thrive’s management costs are more expensive
than other Housing Associations. Changes and cost cutting plans continue, but it
takes time between the changes being made and the savings being achieved. The
Board continues its commitment to reduce this cost and has agreed reporting in
future will show CPU trends.
Whilst CPU is important, savings are always reinvested back into the business, either
developing new properties, or improving services. £703,000 of Value for Money
savings were generated during 2015-16. The table below shows some examples of
how these savings have been reinvested in service improvements:
£000s
Additional electrical testing to ensure all homes are tested every
5 years as is best practice
£528
Development costs associated with redeveloping existing Thrive sites
£93
Project costs to deliver future savings
£69
Additional Jobs at Home social enterprise commitment
£123
Our Value for Money plans 2016-17:
Thrive will continue to seek out Value for Money opportunities. During 2016-17 Thrive
Homes plans to deliver on a number of key activities so it continues to deliver
Value for Money.
• The procurement savings achieved in previous years will continue with further
savings of £310,000 against 2014-15 prices being achieved in the year on
replacement kitchens and bathrooms and replacement doors and windows.
• Further savings in contract procurement are expected, mainly for external
decorating and also asbestos removal. The VFM from the procurement for
asbestos removal works will primarily be passed to Three Rivers District Council
(TRDC) as much of the asbestos works costs are recoverable from TRDC in
accordance with the transfer agreement.
• Progress will have been made with Positive Resilient People and the other
significant change project, such that some £130,000 of VFM savings will be
realised by the end of the financial year, increasing to £578,000 in 2018-19.
These projects will also allow Thrive to offer a better and more responsive
service as these changes will encourage more digital interaction between
customers and Thrive.
• The new Housing Management system will generate £75,000 of savings during
the year.
• The development programme will have new properties completing and either
being let or sold as Shared Ownership. This will increase the number of units
under management by 71 units. These will be managed and services provided
without an increase in staff, effectively managing more properties with the
same costs.
Thrive Homes,
Building 3, Hatters Lane, Watford WD18 8YG
0800 917 6077
www.thrivehomes.org.uk