White Paper on the Benefits of Social Housing Maintenance Outsourcing
The Problem: A transformational approach to outsourcing Social Housing for Local Authorities
Our client was a leading UK provider of Social Housing Planned and Reactive Maintenance Services. Given the financial pressures faced by local authorities they wanted to address this will a new approach to service delivery, one that could transform the finances of local authorities. Credo was engaged, due to its strong understanding of the local authority dynamics, to produce an independent White Paper on the potential savings available from a transformational approach to outsourcing.
Our Approach: Analysis of Local Authority finances and outsourcing potential
We did two analyses that formed the core of conclusions for the white paper. The first was a review of the finances and expenditure at 150 councils, we gathered data to allow each of them to be scored against a financial resilience index and therefore identify those councils for whom cost reduction should be high on the agenda. At an aggregate level, we also reviewed the categories of expenditure that were protected (e.g. social care and education), ring-fenced (e.g. social housing) or unprotected/ discretionary, this helped to identify those areas that would be most vulnerable to funding squeeze. The second analysis was an estimation of savings that could be driven under different outsourcing models.
The Result: A compelling case for Local Authority cost savings
Credo drafted the White Paper and attended the press launch at the House of Commons with our client. The paper built a strong case for the wider adoption of innovative, transformational outsourcing models. We identified £15bn of opex savings, equivalent to a potential £32m saving per Local Authority. Specific to our client, we estimated that the typical local authority could save £14m from new approaches to delivery social housing repair and maintenance services.
To read the White Paper, "Tougher Times, Smarter Ways", click here for the pdf