improve the management and maintenance of council homes.
At national level councils will receive 6 per cent real increases in
Together with changes to take account of rent restructuring, this is
equivalent to an average cash increase of£268 per dwelling by the
This is also on top of a 3.4 per cent real increase nationally in
management allowances and a 1 per cent real increase in maintenance
allowances in 2003-04, announced on 14 November. In total, allowances
will rise by the equivalent of over£325 per dwelling during the
Spending Review period.
Housing minister Jeff Rooker said not all authorities will get the
same amount, but the government's three-year commitment would enable
authorities to plan ahead on a sensible basis.
'These significant increases in resources will allow councils to do
even more to tackle urgent repairs, while improving services to
tenants, and as well the successive increases will boost local
authority efforts to tackle anti-social behaviour.
'We will be reviewing the allocation of management and maintenance
allowances to ensure this new money is shared out as fairly as
possible between authorities, while avoiding unnecessary complexity.'
He said the review would cover, among other issues, the impact that
stock type, sparsity, social factors, and regional cost variations
have on different authorities' need to spend on managing and
maintaining their housing stock.
ODPM will consult councils next year on proposals for allocating
resources for 2004- 05 in the light of the review's findings.
1. The increases in management and maintenance allowances for
2004-2005 and 2005-2006 are reflected in the Pre Budget Report of 27
2. Management and maintenance (M&M) allowances determine the amount
to be provided to local authorities for spending on managing and
maintaining council housing. The allowances form part of the
calculation of Housing Revenue Account (HRA) subsidy. HRA subsidy
takes account of an authority's relative rent income, together with
expenditure on M&M, the Major Repairs Allowance (MRA), rent rebates
and debt charges. Subsidy is payable where calculation shows a
deficit between the assumed income and expenditure.
3. The ODPM published draft 'Housing
Revenue Account Subsidy and Item 8 Determinations for 2003-2004' for
consultation on 14 November 2002 (available here). These documents contained details
of the proposed management and maintenance allowance increases for
4. The proposed increases in management and maintenance allowances
over the Spending Review period will amount to a further£127 per
dwelling in 2004-2005, and£141 more per dwelling in 2005-2006. The
increases take account of the impact of rent restructuring on
5. These are national average figures. The amounts for individual
authorities will depend on their circumstances. This is because
management and maintenance allowances are calculated for individual
authorities on the basis of the characteristics of the housing owned
by them, together with other factors which influence costs.
6. The office has recently commissioned the Building Research
Establishment to review the method of allocating M&M allowances. The
research will review the impact of stock sparsity, social factors,
regional cost variations, and other relevant findings and their
impact on unit management and maintenance costs. Any proposals for
change from 2004-2005 will be subject to consultation.