Delivering value for money
Achieving value for money is a fundamental business strategy for L&Q. We are working to make sure we continue to provide an efficient, cost-effective service to our residents.
In 2012/13, 71% of our residents said they were satisfied that their rent provided value for money. This year, we are continuing to review services where our performance is lower or our costs are higher than those of other housing associations. Some of our homeowners in particular felt that we didn't break down service charges as clearly as we should, so we are now reviewing the process to make sure we communicate effectively with them.
How we deliver value for money
We have integrated our approach to achieving value for money into all that we do.
- Governance - Our board members review the efficiency of our work and make sure that we comply with industry standards on value for money. We also encourage staff to question how we operate to find ways of providing a better and more efficient service
- Financial - Our budget and business plans include targets for making efficiency gains and improvements to services each year. Each department also works to improve how it buys goods and services and looks for new ways to work with partners so that we provide real value for money
- Managing performance - We review our performance continuously and check how we compare to other large housing associations. We aim to remain among the best for financial strength and quality of services. To do this, our senior staff review the costs of our activities and identify how we can improve services
- Resident focus - We are committed to making sure that residents receive value for money from their rent and service charges. We involve residents in our decision making and our board and senior staff monitor resident satisfaction levels regularly
- Planning process - Our yearly business planning process aims to achieve the best service to residents at the most efficient cost, and to generate enough surplus to enable us to invest in improving services and growing responsibly
- Our people - We are committed to investing in our staff and rewarding outstanding performance to improve resident satisfaction and financial strength
Our commitment to residents
We have agreed a value for money standard with residents, which states that:
- We will ensure residents receive value for money through their rent and service charges
- We will invest in the services that matter most to residents
Our successes so far
In 2012/13 we reduced our costs by a further £11 million bringing cost savings over the past two years to £22 million.
During 2012/13, we:
- Delivered efficiency gains on procurement goods and services
- Undertaken a 'customer journey mapping' project to see how we can improve our service
- Reviewed our repairs service and decided to pilot delivering our day-to-day repairs and voids ourselves
- Expanded our in-house caretaking service to around 19,000 homes
Increasing value for money in the future
We are working to continue improving the value for money we offer our residents. We aim to make further efficiency savings this year.
To do this, we will:
- Pilot the in-house management of voids, which we expect will save us in the region of 8%
- A new approach to illegal occupation, which could deliver over 60 homes back into use
- Further procurement savings, which we expect to achieve a minimum of 5% on current costs
You can find further information on how we provide value for money in the following documents: