Competence and conduct are key for social housing providers, but who will pay?

The future of social housing in the UK will depend on well-trained and knowledgeable people with the right qualifications, who demonstrate the right behaviours

This is what the Regulator of Social Housing (RSH) wants to see when assessing the performance of Registered Providers and utilising its new powers of enforcement.

The much-anticipated Competence and Conduct Standard (CCS) was published for consultation by the Department for Levelling Up, Housing and Communities on 6th February 2024.

It is one of several new standards due to be introduced as part of the Social Housing (Regulation) Act 2023, which achieved royal assent last year and is due to be implemented later this year. Under the terms of the Act, the RSH will gain new powers of enforcement – for example, requiring registered providers to put in place and implement Performance Improvement Plans.

The consultation is essentially a heads-up for Registered Providers about what to expect when the CCS is introduced later this year. For example, all staff will need to have the relevant qualifications as outlined in the consultation’s supporting policy statement.

Registered Providers must also have a policy in place, stating their commitment to uphold the standard and how they intend to do it.

Social housing managers must hold relevant qualifications

In some areas, the CCS has provided more detail and guidance. For example, Registered Providers already knew that senior housing managers and executives would be deemed ‘Relevant Persons’ who must have the relevant qualifications.

However, these roles have now been further defined. For example, a senior housing manager “will usually manage the direct delivery of housing management services to tenants…” and a senior housing executive “will usually be Heads of Services and Directors providing strategic direction…”. Individuals employed by service providers to carry out housing management services on behalf of Registered Providers will also be required to have relevant qualifications. If senior housing managers and executives don’t have the right qualifications, they must be enrolled in a suitable course within six months of being identified as a Relevant Person and be working towards them.

The CCS has also confirmed the qualifications required by senior-level staff. A level 4 qualification is required for senior housing managers, and a level 5 qualification or foundation degree for senior housing executives. However, Registered Providers now have more detail about what the areas that these qualifications must cover.

To summarise, the Level 4 qualification must cover housing management and be relevant to the delivery of social housing services. The Level 5 qualification must include housing management and other specific areas, such as ethical practices and professional skills. Further clarification is provided for higher-level qualifications and apprenticeships too.

Registered Providers will be allowed some time to ensure senior-level people have the right qualifications. The consultation explains that those affected must be enrolled on a relevant qualification and be working towards it within six months of being identified as a ‘Relevant Person’. There is no precise time frame for qualification, although two years from the date of enrolment is proposed with necessary caveats for staff on statutory leave. A transition period of 24 months will also be allowed, giving Registered Providers time to ensure that its ‘Relevant Persons’ are properly qualified. However, at least half of them will have to be either working towards a relevant qualification or have achieved the relevant qualification within the first 12 months. The proposed transition period for those with fewer than 50 units of stock will be 48 months.

Upskilling housing managers at a cost

Nevertheless, time is not going to be the main concern for Registered Providers. At a time when costs are high and margins drastically reduced, they need to know how the upskilling and maintenance of skills are going to be paid for. There is no mention of financial assistance in the consultation, and the cost impact assessment suggests the qualification element of the CCS alone could cost some £63.6m. It’s also not clear whether this figure includes the cost of covering staff while they are absent from work and studying for qualifications, nor does it address how standards will be maintained during these periods of staff absence.

Rather than wait for the new CCS to be imposed, Registered Providers have an opportunity to shape it. They should aim to submit their views in response to the consultation by 2nd April 2024.

This piece was written and provided by Katherine Sinclair, legal director and employment law specialist at Anthony Collins.