Public Policy: Using Market-Based Approaches - Department for ...

levels are reducing and new tenants are staying in their properties for a
longer period. How this contributes towards sustainable communities and
how much of it can be attributed to [CBL], it is difficult to say. 147
ADMINISTRATION COSTS
ODPM funding was provided for the pilot phase of CBL only. For subsequent
schemes the local authority has to pay all set-up costs out of its existing budget.
The most significant set-up costs are IT and organisational change costs.
Organisational change costs include equipping housing officials with new skills,
such as marketing, and helping them adapt from their previous administrative
function to their new roles as facilitators of choice. IT set-up costs vary greatly
depending on the approach taken to procurement. Pilots adapting existing
systems or purchasing off-the-shelf solutions typically spent around £20,000 on
IT whereas pilots choosing to develop a bespoke system spent closer to
£100,000. 148 IT costs could also include the provision of computers for use by
applicants, the purchase of camera equipment, the setting up of property
websites and training staff. Some pilots managed to set-up on the basis of very
limited funds, for example Market Harborough’s only development costs were
employing a project manager for 3 months (£4,500) and establishing a new IT
database (£2,000).
Table 10.8 shows estimated set-up costs used by one local authority as the basis
of its bid.
Table 10.8
Example of pilot set-up costs
Category Cost
Marketing (campaigns to increase awareness) £150,000
PR (private sector agency to develop and oversee media strategy) £50,000
IT costs (including 2 years’ maintenance costs, valued at £3000) £123,000
Training for 150 staff £68,000
Private sector monitoring £30,000
Project co-ordinator £30,000
Resources used in establishing the network system £25,000
Developing links with other agencies £10,000
Exploring and describing local area for inclusion in property details £32,000
Cost of staff time spent in training £42,000
TOTAL £560,000
Notes: These costs are estimates only.
Source: Twin Valley Homes.
147 See Marsh et al (2004), Op.Cit.,p.162.
148 LGA (2004) Enabling choice: research on choice in public services,p.34.
Section 10 – Choice-Based Letting in Social Housing
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