The tragic fire at Grenfell Tower in 2017 caused a chain of events that has led to the most fundamental shakeup of consumer regulation we have seen. Last year saw the implementation of the much anticipated Social Housing Regulation Act 2023 (the Act). An act with the ambitious aim of driving significant change in landlord behaviour.

Another new consumer standard

Many specific changes to consumer regulation were proposed as part of the Act, including two new consumer standards. The first was in relation to the provision of information to tenants. The government had already consulted in relation to this and in our previous insight we reported that the government had now issued its direction to the Regulator for this new standard.

The government has now turned its attention to a second new consumer standard on competence and conduct.

Competence and conduct

Evidence given to the Grenfell Tower Inquiry by residents alleged that tenants were not listened to, that staff behaviour was unprofessional and lacked skills and knowledge to carry out their roles. It has been a key campaign pledge of Grenfell United around staff having the correct level of skills and knowledge to be addressed and that those responsible for managing social housing have specific qualifications to do so.

Put simply, all social housing staff should have the skills, knowledge and experience to provide tenants with a quality and respectful service. This is what the new consumer standard will aim to achieve.

The government has now published, and is consulting on, a draft direction to be issued by the government to the Regulator of Social Housing about competence and conduct in the sector. The consultation began on 6 February and will run for eight weeks until 2 April 2024. The anticipation is then that a new consumer standard will be published for consultation later this year and will apply from April 2025.

Details of the direction

The draft direction specifies that the new consumer standard requires Registered Providers (RPs) and local authorities (LAs) acting in the capacity of RPs to have an up-to-date written policy setting out its approach to managing and developing the skills, knowledge, experience and conduct of those of their staff who are relevant individuals.

The new consumer standard will also oblige RPs and LAs to comply with the government’s policy statement on Qualifications Requirements for Social Housing. That policy statement sets out:

• more detailed information about the roles and qualifications
• time limits for staff to begin working towards qualifications
• a transition period before requirements come fully into force
• the exemptions or flexibilities that may apply.

RPs and LAs need to be aware that they will be required to ensure that “Relevant Persons” have, or are working towards, a relevant qualification and take steps to ensure that “Relevant SP Managers” of their service providers have, or are working towards, a relevant qualification.

“Relevant Persons” and “Relevant SP Managers” include “senior housing executives” and “senior housing managers” (as further defined) who have a substantive role in managing delivery of housing management services to an RP’s and LA’s social housing tenants. There are other conditions individuals must meet to fall within the definitions. 

“Relevant Persons” and “Relevant SP Managers” must have been in role for six months before they must comply, unless they have a probation period. Where there is a probation period, the requirement is to begin working towards the qualification within nine months of starting the role.

The relevant qualifications must be regulated by Ofqual and are:

• for senior housing managers, a Level 4 qualification
• for senior housing executives, a foundation degree or Level 5 qualification.

The direction recognises the practical difficulty for RPs and LAs in ensuring its staff meet these new requirements and has proposed a 24 month transition period (adjusted for smaller RPs and LAs) during which relevant persons must begin working towards their qualifications.

There is a lot of further detail in the direction around matters such as existing qualifications and what constitutes “working towards” a qualification.

Although the new standard will only apply directly to RPs and LAs, those RPs will be expected to take steps to secure that relevant staff within housing managers also have the necessary skills, knowledge and experience and exhibit the right behaviours. Implied terms are to be read into management service agreements requiring that the relevant managers will be contractually obliged to obtain the relevant qualifications.

How Capsticks can help

There is going to be a lot of work for RPs in ensuring their staff meet these new requirements.

Capsticks can assist with reviewing structures and policies that your RP has in place to ensure compliance with these new legal requirements, or to advise on the broader changing landscape of consumer regulation and how you can prepare for it.

We can also assist with more detailed cultural reviews of employers, to ensure the rights behaviours are embedded within an RP.

Also, consider signing up for the Capsticks Housing Diploma.

If you have any queries around what's discussed in this article, and the impact on your RP, please speak to Darren Hooker to find out more about how Capsticks can help.

Our specialist local government advice is cost-effective and strategic, complemented by practical knowledge of your daily challenges. Capsticks aims to be the firm of choice for organisations working within the local government sector, offering a full range of services including advising on governance, vires and constitutions, applying for and delivering large regeneration projects, updating constitutional documents, refresher procurement training and support in preparing for an upcoming employment tribunal.

If you have any questions on how the above affects your local authority, please contact Paul Lloyd.