Value for Money
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1 Value for Money or Thrive Homes Building 3, Hatters Lane, Watford WD18 8YG
2 Value for Money We deliver services efficiently and effectively, so we are confident we offer you real Value for Money (VFM) which also means we can build more affordable homes. In , Thrive generated over 926,000 in Value for Money savings. This report shows you what we have done this year and outlines our plans going forward. You can read more about Thrive s Value for Money achievements in our Financial Statements report on our website at Providing good quality affordable homes and services enabling the development of communities where people enjoy living.
3 What is Value for Money? Value for Money is about more than just the price of goods and services. It s about the blend of the quality and cost of those goods and services as well as the careful and timely use of resources. The cheapest option is not always the best choice. Achieving value for money comes from balancing economy, efficiency and effectiveness. Economy Efficiency Effectiveness Careful use of resources to save expense, time or effort Delivering the same level of service for less cost, time or effort Delivering a better service or getting a better return for the same amount of expense, time or effort It s important for both residents and the business that Thrive delivers Value for Money. Thrive is delivering this by: Focusing on working more effectively Ensuring that we invest in homes with a long-term future Increasing the number of homes we manage.
4 How did we achieve Value for Money in ? In our report last year we outlined areas of the business where we believed we could achieve Value for Money savings and set ourselves targets. Value for Money performance What we said How we did Comments Stock condition surveys for over 500 homes, so we can identify and plan future work. Procurement savings of 310,000 compared to 2014/15 prices. Savings from 2016/17 procurement projects. Further savings in contract procurement, primarily for external decorating and asbestos removal. The new housing management system will have achieved 75,000 of Value for Money. The new Positive Resilient People and Thrive Deal projects will generate 130,000 of savings in 2016/ new homes to be managed with no increase in staff or costs. Sponsoring projects which bring social value (benefit to local communities). Surveys have been carried out on half of our rented homes over the last five years, with the results being fed into our planning process. Savings of 568,000 were achieved on the procurement of replacement kitchens, bathrooms, doors and windows. 179,000 of savings generated from procurements carried out within the financial year. The contract was procured and work started during the year. The efficiency of a single integrated system has already generated 76,000 of savings. 235,000 of savings achieved in 2016/ new homes were built or acquired during the year, with no increase in staff. We have awarded 80,014 of grants during the year. Using the HACT social value calculator (the measure commonly used by housing associations), these projects provided 10.6 million of social value. By gaining more accurate information about the different types of work needed, we believe we can save 9 million - 13 million (5-8%) over the next 30 years. The five-year windows and doors contract will generate further savings in 2017/18. This was a long-term roofing contract which will generate further savings in 2017/18. 7,000 of savings generated from external decoration work. Further savings will be achieved, in conjunction with other VFM opportunities. These initiatives will lead to annual savings of 431,000 from 2017/18 onwards. Improved efficiency means that more homes have been managed with less staff than the previous year. The HACT value is very dependent on the people helped by the grant. It tends to be higher for projects relating to young people. eg. a 2,000 grant to Sportinspired s South Oxhey Community Games generated a value of 2.1 million.
5 Other achievements during the year have included: more efficient ways of working resulting in over 80,000 of savings our GIVE (Generating Income for Voluntary Enterprises) initiative including a staff volunteering programme and suppliers supporting local charities generating 10,000 of VFM. Value for Money for current and future customers The average rent for a Thrive property is 108 per week. Below indicates how that 108 is spent. A little over 40 is spent on keeping customers homes in good condition, with nearly 36 going towards paying the interest costs of Thrive investing in building or acquiring more homes Management Costs Repairs & Maintenance Major Works Interest Costs Other/Development
6 Our Value for Money plans These are our key plans to continue delivering VFM over the next year. Procurement savings will continue with further savings of 214,000 achieved against 2016/17 prices on replacement kitchens, bathrooms, roofs, doors and windows. Contract procurement savings of 104,000, primarily on heating and responsive repairs. 28,000 of savings, with more expected in 2018/19, as we turn off old systems which have been replaced by our new housing management system. 130,000 of VFM savings, increasing to 578,000 in 2018/19, generated by the Positive Resilient People and Thrive Deal projects which also help us offer a better, more responsive service to customers. Development starting on 78 new homes and completion of 11 homes, with no extra housing management costs. Work will continue to review the in-house maintenance team, assessing the VFM they deliver. mythrive Coming in summer 2017 the mobile mythrive App will enable greater choice and access enabling tenants to view your account balance; report issues; book a basic repair; pay Thrive.
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