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Housing association executive pay ‘out of control’, says Jenrick
Executive pay at some housing associations is “out of control”, the housing secretary has said in a televised interview.
In a programme broadcast by ITV News last night, Robert Jenrick rejected the idea that the government bears any responsibility for poor conditions in some social housing.
“This has nothing to do with government funding, this is about neglect, this is about a lack of compassion and poor management in a small number of councils and housing associations,” he said.
Over the past few months, ITV News has been running a series of reports highlighting cases of severe disrepair in social homes across England, speaking to residents who say they feel ignored.
Huge housing associations Clarion and L&Q were among those criticised, while issues exposed at a block owned by Croydon Council led to it being censured by the Regulator of Social Housing in May.
Last month, Kate Henderson, chief executive of the National Housing Federation, apologised on behalf of the sector in an interview with ITV.
In the interview aired yesterday, Mr Jenrick said it was “shameful” and “disgusting” that people are living in the conditions shown, but that it represented “a minority of homes in this country”.
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“The majority of providers of social housing, whether it be councils or housing associations are doing a good job, but there are clearly some that are falling way below the acceptable standard, and we need change,” he added.
He was unable to provide a date on when legislation implementing the Social Housing White Paper proposals will come forward, beyond promising a bill “as soon as possible”.
Asked if he felt housing associations have “lost their way”, Mr Jenrick replied: “Some of these organisations are very big, they’re sophisticated, and they have very well paid executives.
“There’s absolutely no excuse for them to be providing anything other than the best possible service to their residents.”
Pressed on the issue of pay, he added: “I think executive pay is out of control in some of the housing associations that you’ve highlighted, absolutely.
“And I think they need to return to the kind of social and moral mission, which is what housing associations and the charities that came before them really originated from.”
Inside Housing’s annual survey of housing association chief executive salaries revealed that the average pay was £181,086 in 2019/20, up 2.29% on the previous year.
The highest paid chief executive took home £436,681, with six earning more than £300,000.
Questioned on the government’s record of building homes for social rent – with only around 6,000 delivered in 2019/20 – Mr Jenrick said: “Not everybody wants or has to be consigned to living in homes for social rent.
“We want to ensure there is a ladder of opportunity so that, yes, there are more homes for social rent but there are also more homes for shared ownership, First Homes so that young people, and those who are key workers like NHS and social care workers, can own a property.”
