Housing Associations not exempt from pay transparency, says government

June 3, 2010

The government has opened another front in its campaign against high public pay levels by highlighting some of the best paid housing association chief executives.

Housing minister Grant Shapps had identified more than 50 housing association chiefs who are paid more than prime minister David Cameron. According to figures for last year, the highest paid was John Belcher of Anchor Trust, at £391,000. Next was David Cowans, of Places for People, on £297,000. Six others earned more than £200,000, including Keith Exford at Affinity Sutton, Mark Rogers at Circle Anglia, David Bennett at Sanctuary and David Montague at London & Quadrant.

Housing associations are not part of the public sector but many receive substantial public grants, mainly from the Homes and Communities Agency to finance development. They are, unlike public bodies, free to borrow on the money markets against their rental incomes and property. Associations are run on a not-for-profit basis with surpluses reinvested in social housing and regeneration. Some, though not all, are registered charities.

Shapps said: "This government will champion a new era of transparency by shining a bright light on how hard earned taxpayers' cash is being spent. I can see no reason why housing charities who themselves receive public funds should be exempt from this important process.

"There is a clear public interest in the creation of a new 'right to data' ensuring that all types of information are routinely published; including the salaries of those earning higher salaries. We are keen to encourage all organisations who receive public money to sign up to the same principles of transparency in order that the taxpayer can see where their money is being spent."

Places for People chair Zenna Atkins defended Cowans’ pay: “Places for People is not a government agency, and raises the majority of its capital from private markets. However if the wider property sector is going to attract and retain chief executives of a high calibre then we need to ensure that their salaries are attractive, reflect previous experience, and reward performance. David Cowans' leadership has steered Places for People through what has been an unprecedented economic and housing downturn.”

An Anchor Trust spokesman said Belcher’s pay reflected the scale of “a large and complex organisation, providing housing for rent and for sale, home care and care homes to more than 50,000 customers… a significant and growing proportion of Anchor’s income comes from private individuals.”

Solicitor