Ministers believe the previous system for allocating money was overly bureaucratic, and meant councils spent too much time and expense jumping through hoops, rather than making improvements to social homes.
Mr Shapps said the money would now be allocated to councils who showed they could tackle a significant backlog of homes that need improving, rather than on the basis of a particular organisational structure or general performance criteria.
The changes to the allocation process are part of the Government’s commitment to fairness, ensuring that following the tough spending review, money is directed towards frontline services and protecting the most vulnerable people in society.
Grant Shapps said:
"Previously tenants were in the worst homes when landlords were denied Decent Homes cash because they did not play by the previous Government’s rules. I believe that’s completely unfair – tenants are missing out on vital improvements to their homes through no fault of their own.
"That’s why I’m changing the system so from now on the areas that need the money most will get it. And it’s why despite the steps the Government is taking to tackle the record deficit, we’ve set aside over £2bn to make sure these homes are brought up to scratch."
Ministers want a fair system to allocate the funding, so all councils that have a significant backlog of work will now be able to apply. Proposals published for consultation set out the new process, and welcome the views of councils and social landlords on the best way to gather information and make fair funding decisions.
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