The revised Value for Money (VfM) Standard was launched in England in April 2018, to help social housing organisations further improve their strategies in a way that optimises the three Es:
We’ve emphasised the need to treat VfM as a cross-departmental issue ever since the Standard was introduced. The Regulator has too. But in our 2020 survey, more than half of all respondents said responsibility for VfM sat solely with the finance department.
In 2021, significant numbers are moving VfM away from finance and making it a cross-departmental responsibility. This is an exciting change.
When the VfM buck stops with finance, economy often receives the lion’s share of attention – and VfM becomes little more than a cost-cutting exercise. Giving departments responsibility for their own VfM efforts should lead to greater efficiency and effectiveness.
The 2025 ban on installing new gas boilers in new homes is a good example. Organisations may incur significant short-term costs to adapt, but they’ll be far outweighed by the long-term efficiency, sustainability and environmental gains. These decisions can’t be taken from a short-term, cost-saving point of view.
Contact us for support and advice
Our social housing specialists can help you and your board decide how to tackle the big governance challenges facing your organisation.
Contact Keith Ward, our Head of Social Housing, to discuss your challenges.