One of Birmingham’s biggest Supported Exempt Accommodation providers has been hit with formal enforcement action after the Regulator of Social Housing said it does not have confidence in its long-term viability.
Concept Housing Association has been ordered to bring in an insolvency expert and prepare a wind-down plan after what the regulator describes as a sustained period of serious failings, weak business planning, inadequate risk management and significant financial deterioration in recent months.
The sums of public money involved are enormous.
Concept received £41.6 million in Birmingham Housing Benefit in 2021/22 alone, with more than £80 million of taxpayer money paid over four years.
Its current Interim Chief Executive is Cllr Morriam Jan, a Birmingham Liberal Democrat councillor.
Concept has also paid substantial sums at executive level. Its last published accounts show its previous Chief Executive received £114,975 for a full 12-month year, while earlier this year the organisation advertised its permanent Chief Executive role at £146,722 plus a 10% car allowance.
This comes against the background of years of controversy over Birmingham’s SEA sector - including significant concerns about antisocial behaviour affecting local communities, weak oversight and the huge amounts of Housing Benefit involved.
There are now serious questions requiring answers, which we will be putting to the Liberal Democrat Leader of Birmingham City Council:
How much Birmingham Housing Benefit is currently being paid in respect of Concept accommodation, and how many Birmingham residents are affected?
What did Birmingham City Council know about Concept’s deteriorating position, and when?
What contingency plans are now in place for residents who rely on Concept accommodation if the organisation is required to wind down?
We are not alleging any wrongdoing by Cllr Jan, but her senior role at Concept and her position as a Birmingham councillor raise legitimate questions of transparency, declaration and accountability.
Cllr Jan’s publicly available Register of Interests is dated August 2023. It lists Jan Consultancy but does not list Concept Housing or her Interim Chief Executive role. The declaration itself requires relevant changes to be notified to the Monitoring Officer within 28 days.
As such, we want to know:
When did Cllr Jan take up the Interim Chief Executive role, and when was that employment declared to Birmingham City Council?
Is her current Register of Interests fully up to date?
Since taking up the Concept role, has she participated in any Council discussions, questions or votes concerning Concept, Supported Exempt Accommodation or supported housing?
Cllr Cherie Waddingham, Reform UK Birmingham spokesperson for Housing, said:
“Supported Exempt Accommodation has been one of Birmingham’s most troubled housing sectors for years. Residents and local communities have had to live with the consequences while huge sums of public money have continued to flow through the system.
“The Council must protect those who genuinely need supported housing, but it must also protect communities that have carried the consequences of badly managed SEA accommodation for far too long.
“With Concept now facing enforcement action, Birmingham City Council needs to be completely open about its financial exposure, the number of people affected and what contingency arrangements are in place.”
Cllr Jex Parkin, Leader of Reform UK Birmingham, said:
“The fact that Concept’s Interim Chief Executive is also a serving Birmingham Liberal Democrat councillor makes transparency especially important.
“Birmingham residents should be able to see clearly when the role began, when it was declared and how any potential conflicts have been managed.
“With so much public money involved, there can be no room for ambiguity.”
Reform Birmingham will not let this be brushed aside. We will always keep fighting for Birmingham residents.