Fair Funding Review – What Changed and What We Called For

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The Government has published its response to the Fair Funding Review 2.0, setting out major reforms to local authority funding from April 2026. These changes aim to create a fairer, evidence-based system that reflects local need and deprivation while simplifying the funding landscape. Below, we outline the key changes and how they compare to the priorities we set out in our submission to the associated consultation.

We are pleased to see that Government has made many of the changes we called for.

 

What We Called For – and How Government Responded

  • Deprivation to be at the heart of funding: We called for deprivation to be central to the new system. The Government has confirmed this, using updated Indices of Multiple Deprivation (IMD) data and weighting deprivation strongly in the Foundation Formula.
  • Recognition of homelessness pressures: We highlighted the surge in temporary accommodation costs. The Government has introduced a dedicated formula and consolidated homelessness funding streams.
  • Simplification and flexibility: We urged an end to competitive bidding and a move to consolidated grants. The Government will implement this, giving councils greater certainty of future funding levels.
  • Area Cost Adjustment (ACA) concerns: We warned that ACA changes could penalise deprived areas. The Government will apply funding floors and restrict the remoteness adjustment to adult social care only, minimising the negative effects we were concerned about.

 

What Has Changed?

The Government has modernised the funding formulas for the first time in decades, reducing the number of them from 15 to 9. These formulas also now use the 2025 English Indices of Multiple Deprivation, which include income after housing costs, and incorporate population projections to keep allocations current. A new Temporary Accommodation formula has been introduced to reflect rising homelessness costs nationally, and increasingly in the North.

The Area Cost Adjustment (ACA) – a modifier applied to initial funding allocations to account for the different costs of delivering services in different areas – continues to account for labour and property costs. However, the proposed remoteness adjustment will now apply only to Adult Social Care, not across all services. These measures have been replaced with journey times as a more accurate proxy for accessibility costs, ensuring that local authorities are shielded from disproportionate costs of delivery due to sparseness based on credible data. Transitional protections will also aim to cushion any negative impacts.

Continuing with the theme of simplification and consolidation, over 30 separate grants worth a total of £47 billion will be consolidated. Four new ringfenced grants — covering homelessness, public health, crisis and resilience, and children and youth services — will replace multiple smaller streams, while 17 grants will be rolled into the Revenue Support Grant, reducing administrative burdens and ending most competitive bidding.

A notional council tax level will be set at the national average (£2,060 in 2026–27, rising to £2,265 by 2028–29) to ensure full equalisation. Mandatory discounts and exemptions will be fully included in taxbase measures.

Funding changes will be phased in over three years, with funding floors guaranteeing 100% income protection for most authorities and 95% for those significantly above new allocations. The Recovery Grant Guarantee will maintain support for the most deprived areas. This will be achieved through a staged rollout of the new formulas, combined with guaranteed minimum allocations and targeted top-ups for deprived areas to prevent sudden funding losses.

For more details on the Government’s response visit: Fair Funding Review 2.0 government response

 

 

 

 

Building Stronger Communities – the role of NHC members 

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Lee Bloomfield, Chief Executive, Manningham Housing Association

 I recently had the privilege of addressing the NHC Northern Housing Summit on the role housing associations can play in advancing the Pride in Place agenda. 

 Launched by the Prime Minister in September, the £5 billion programme will allocate £2 million to 169 areas every year for a decade, “giving long-overlooked communities the certainty and control they need to plan for the future.”  A further 95 areas are receiving £1.5 million to upgrade public spaces.   

 The Government announcement added: “This is about choosing a future where communities are empowered to come together, rather than be divided, and where renewal is chosen over decline.”  

 It is not a new concept.  Indeed, I would humbly suggest that Manningham Housing Association (MHA) has been delivering the ethos of Pride of Place since 2021 when we secured almost £2500,000 from MHCLG to deliver our Building Bridges Bradford project. The grant was added to the £200,000 we had already earmarked, making it a £450,000 scheme.  

 The initiative sought to bolster community resilience, enhance societal awareness across diverse cultural/faith/ethnic communities, and challenge racism, prejudices and community division through a range of social action activities.  It was delivered across Bradford but specifically targeted at 32 wards ranked in the top 3% most deprived in the country.  Two of these – Ravenscliffe and Holme Wood – are now recipients of Pride in Place funds 

 Over the period of Building Bridges Bradford, the team engaged 2240 beneficiaries, with more than half receiving direct support by attending multiple wellbeing sessions and over 65% reporting personal improvement to their mental health. 

 Other tangible outcomes included 40 service users receiving support to enter employment, 39 black and Asian women benefitting from online business coaching with six setting up a business, several hundred people reporting improved physical health, and 275 service users – including those from marginalised groups (LGBTQ, refugees and disabilities) – taking part in community conversations and good neighbours day sessions, with over 56% reporting improved community relations, a better understanding of hate/race crime and healthy cultural friendships with fellow participants. 

 Given the success of the project and the desire of our Board to ensure continuity of some of these initiatives, since 2022 we have allocated 2% of our annual turnover to community investment.  

With 1,500 homes, MHA is the sole BME association in Bradford district which, according to the 2025 Index of Multiple Deprivation, is ranked 11th out of 296 local authorities with 37% of neighbourhoods classed as highly deprived. In England as a whole, this figure is 10%.  With more 15% of housing stock in Bradford and Keighley owned by housing associations, the role we play is therefore critical if schemes such as Pride in Place are to succeed.    

Communities thrive when there are strong connections between people from all walks of life.  These connections are the foundation on which community cohesion, resilience, integration, safety, trust and belonging are built.  

 But such bonds are not formed by accident or wishful thinking.  They must be nurtured and, yes, properly funded, even in the current climate of scarce financial resources.    

 Social cohesion is about building a society where people feel they belong and are accepted; there is trust between individuals, groups, and institutions; there is equality of opportunity; people participate in civic and community life; and differences are respected and celebrated rather than regarded as causes for division. 

 There are clearly societal challenges to achieving these ends.  Discrimination and unequal opportunities remain all too common, not helped by regional divides which successive Governments have failed to tackle. Almost ten years on from the Brexit referendum, polarisation in politics and identity shows few signs of diminishing.  And online misinformation and social media abuse continues to be rife.      

 But, by seeking to overcome these hurdles and aspiring to achieve the vital elements of social cohesion, the rewards for local communities can be great. 

 Research shows that high social cohesion is linked to numerous positive aspects of everyday life such as lower crime rates, better mental health and wellbeing, and higher public trust in how we are governed.   It also boosts economic performance in communities, creating jobs and opportunities to improve lives.  

 Pride in Place is about building stronger communities, and it is not just down to local councils to deliver the programme.  Working alongside them and other key partners, I believe housing associations are ideally equipped to help deliver the programme’s objectives.  

 We must invest in the spaces and structures that bring people together and restore a sense of pride in the places we live.  Pride in Place can become a significant step in the right direction.  

New board and senior team appointments strengthen NHC’s mission to deliver for members and communities in the North

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We have strengthened our leadership team with two new board members, Chief Executive of Pickering & Homes and Chair of the Hull and East Riding Housing Partnership, Claire Warren, and Chief Executive of Calderdale Council and President of Solace, Robin Tuddenham.

Saqib Saleem, Manningham Housing Association’s Director of Operations joins as a Board Associate through the NHC’s non-executive director (NED) leadership development programme, which offers training, mentoring and board-level exposure to support the development of rising stars from diverse backgrounds within the sector. The programme, devised with support from the Housing Diversity Network, aims to increase board diversity by bringing in a wider range of skills and life experiences including filling professional skills gaps within the NHC Board Committees.

We’re also pleased to welcome back Catherine Wilmot as Executive Director of Finance, Governance and Improvement. Catherine is a familiar face at the NHC having previously been Executive Director (Finance and Operations) between 2018 and early 2024.

The new recruits join us at a pivotal time. Over the past year, Government investment in social housing has grown significantly, and devolution has deepened with increasing powers for northern metro mayors. After successfully campaigning for change, the NHC’s focus is now on supporting members to deliver Government ambitions, including through Housing Partnerships that work closely with mayors across the North. The NHC has also launched Renew, an inquiry looking into how housing-led regeneration can drive growth and support communities across the North.

Northern Housing Consortium Chief Executive Tracy Harrison said:

“I’m pleased to welcome Claire, Robin and Saqib to the board. It’s a privilege to have a board which offers such fantastic insight and expertise. It’s particularly exciting to welcome Saqib as the first participant in our NED training programme. It’s vital our board is representative of our membership, and communities in the North. It should include people from diverse backgrounds with different life experiences to make sure a wide range of perspectives are represented. We will continue to run the programme and hope it will empower people to take their first steps into non executive leadership roles.

“It’s also great to welcome back Catherine, who has contributed so much to the NHC. It’s testament to the strength of our culture that she decided to return. Catherine and the new board members will be instrumental in helping us deliver our new corporate plan.”

Executive Director of Finance, Governance and Improvement Catherine Wilmot said:

“I’m really pleased to return to the NHC. We have a fantastic team of colleagues who are committed to our mission to make sure everyone has access to a safe, warm home they can afford in a place they’re proud of. It’s a friendly and supportive place to work and there’s a positive and welcoming atmosphere.”

Housing Diversity Network Chief Executive Mushtaq Khan said:

“We were delighted to work with NHC on this recruitment process. We’re firm believers that inclusive and diverse recruitment is about investing in the future leadership of organisations and opening doors that have historically remained closed. Our programmes aren’t just about opportunity — they’re about equity, representation, and ensuring that the communities we serve can finally see themselves reflected at every level of the housing sector.”

You can find out more about the NHC board here.

Tenant Voice 2025: Two Days of Insight, Innovation and Impact 

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The Northern Housing Consortium’s 15th Annual Tenant Voice Conference brought together sector leaders and housing professionals with tenants for two days of discussion, learning, and collaboration all focused on one central theme: strong and impactful tenant engagement. 

Across both days, one message came through loud and clear: meaningful tenant voice is essential for building trust, tackling stigma, and driving the culture change our sector needs. 

Day One: Setting the Scene and Driving Standards 

The conference opened with Paul Fiddaman, Chief Executive of Karbon Homes, who set the tone by reflecting on the significant changes that are currently shaping social housing. Paul shared how Karbon embeds their values into everyday behaviours, with staff appraisals linked to demonstrating customer-centric service – a practical example of putting tenants at the heart of organisational culture. 

Tenants were active from the start, asking insightful questions about training and qualifications for housing staff and emphasising the importance of high standards in how tenants are treated. 

Kate Dodsworth, Chief of Regulatory Engagement at the Regulator of Social Housing, followed with an update on the regulator’s new powers and priorities. She stressed the importance of transparency, accountability, and tenant engagement in improving standards. Kate highlighted how tenant satisfaction measures can act as an early warning system for landlords and repeated her call for tenants to share their views as the regulator moves forward with its four-year programme. 

Richard Blakeway, Housing Ombudsman, then shared trends from the past year, including how complaints are now better resourced and recognised as vital for learning and culture change. His message was clear: complaints aren’t something to fear; they’re an opportunity to improve. Richard also addressed stigma in language and the Ombudsman’s outreach work, which now includes one explainer document that has been translated in 300 languages! 

The morning continued with Chloe Tilford from Housing Diversity Network, who led an interactive session on unconscious bias and how misinformation can derail community efforts. Her practical tips for spotting loaded language and challenging assumptions resonated strongly with delegates. 

Luke Baptiste from South Liverpool Homes showcased how they embed tenant voice through their Customer Committee and Scrutiny Panel, visiting hundreds of homes each month to understand residents’ needs and offer support. Their #LetsTalkFacts campaign to tackle misinformation around allocations was a standout example of transparency and two-way dialogue. 

The day closed with Andy McGrory from the Building Safety Regulator, who reinforced the importance of involving residents in decisions, not doing things to them, echoing lessons from Grenfell. 

Day One highlighted the importance of restoring trust, challenging stigma, fixing bias, and ensuring safety – all underpinned by the power of tenant voice. 

 

Day Two: Collaboration and Innovation 

Day Two began with our own Liam Gregson, Senior Engagement Manager at the NHC, introducing RENEW, our housing-led regeneration inquiry. Liam outlined why this work matters; learning from the past; sharing knowledge across power structures; and securing investment for social housing in the North. 

He was followed by representatives from Magenta Living, including Adam Costello, Customer Committee Member, who gave an inspiring talk on meeting tenants where they are – not just in town halls – and Mark Armstrong, Regeneration and Public Affairs Director, who reminded us that housing is about more than bricks and mortar. Magenta Living’s JobsPlus scheme is a great example of going beyond legal requirements to empower communities. 

Next, Amy Broadley from Sir Josiah Trust shared how they bring residents into the boardroom to ensure decisions reflect real voices. Working with Emma Wilson at YD Consultants, they’ve collaborated across six landlords to tackle complaints and co-create 17 practical recommendations – from clearer communication to valuing older residents’ skills. 

We then heard from Colchester Borough Homes, who challenged us to rethink language: it’s customers, not tenants, and it is housing first, not social housing. 

A quick-fire session followed, with six landlords showcasing innovative approaches to customer involvement. Huge thanks to Cobalt Housing, North Star, Berneslai Homes, Arches Housing, and Progress Housing for sharing their work. Big or small, every organisation acknowledged this is a continuous journey – and the destination is always evolving. Each landlord acknowledged that enacting culture change must be front and centre throughout. 

 

Looking Ahead 

Across both days, delegates asked great questions and engaged in lively discussions, reinforcing that tenant voice is not a tick-box exercise – it’s a long road of culture change. From tackling stigma and bias to embedding trust and safety, the sector is committed to making this journey together. 

A huge thank you to all our speakers, delegates, and partners – especially Yvonne Davies of YD Consultants – for making this year’s conference such a success. The all the conversations across the conference have been eye-opening, inspiring, and a powerful reminder of why tenant voice matters. 

Renew Update: Second advisory group and housing partnership engagement   

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Renew, our inquiry into housing led regeneration, supported by Homes for the North and Muse is continuing to build momentum. The advisory group, made up of made up of housing association chief executives, local and regional government regeneration specialists, policy experts and academics, met for the second time this week. On the agenda were future plans for the inquiry, which include an interim report summarising findings for the Call for Evidence and other research in early summer, and plans for an visits and tours over the summer alongside resident engagement work. The group also fed back on communications plans for the inquiry.  

The NHC team has attended Housing Partnership meetings in (add areas) to explain more about the inquiry and how partnerships can get involved by responding to the Call for Evidence, hosting visits and tours or contributing in other ways. We have further sessions in the new year with (add list of housing partnerships.  

The Call for Evidence, which launched at the Northern Housing Summit is open until 27th February. It is the beginning of a comprehensive effort to gather the evidence the Government needs to act on housing-led regeneration. We want to hear directly from those with experience in planning, funding, delivering and living through regeneration. This will help us to understand what works, what doesn’t, and what needs to change to ensure housing-led regeneration delivers lasting benefits for residents and communities.  

You can download the Call for Evidence on the Renew website.  

A landmark year for housing in North

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Our Chief Executive Tracy Harrison looks back at what has been a momentous year for social housing in the North. She reflects on what we’ve achieved – both politically and in terms of our member offer – and looks forward to 2026.

This year has been one of the most significant for the social housing sector in the North. We’ve seen once-in-a-generation investment in social housing from the Government. At the NHC, we’ve been actively representing members’ views right at the very heart of Government, and working to support members to deliver.

We launched our new corporate plan with three key strategic priorities:

  • We move the dial on northern policy
  • We’re all about people (your people and our people)
  • We create value

Moving the dial on northern policy

Together, we’ve influenced national decisions in ways that would have seemed impossible just a few years ago.  The social housing sector has received significant investment in recent months – including the £39bn commitment to the Social and Affordable Homes Programme, with flexibility around regeneration and net additionality, and the 10-year rent settlement.

Mayors now have more local control, and more flexible funding rules now reflect the reality that “one size fits all” simply doesn’t work for the North. Thanks to the evidence you’ve shared and the work we’ve done collectively, long-standing asks have been delivered. Our Executive Director (Policy and External Relations) Patrick Murray has written a more detailed article on moving the dial, summarising the policy change we’ve seen and how we deliver that change.

The NHC team has worked tirelessly to make this happen—meeting ministers, organising site visits, and presenting detailed evidence that reflects the realities of the communities you serve.

Looking ahead, our newly launched Renew inquiry, supported by Homes for the North and Muse, will explore housing-led regeneration as a driver of growth and stronger communities. Our Call for Evidence is already underway, and we’re engaging with ministers to ensure regeneration in the North receives the support it deserves.

We’re all about people

Our second priority is simple but vital: we’re all about people—your people and our people. Over the past year, we’ve created spaces for collaboration and shared learning across virtually every landlord issue. From strategic leaders to frontline staff, tenants, and residents, we’ve held more than 110 events attended by over 1,000 colleagues. That’s more than two events every week, each designed to strengthen our collective impact.

We’ve also taken senior government officials across the North to see members’ work firsthand. These visits help decision-makers understand the challenges you face and the opportunities that exist to deliver for communities.

Supporting people also means investing in their future. Our Unlocking Success Bursary scheme continues to change lives, awarding £500 bursaries to support social housing residents with training and employment opportunities. We’ve partnered again with the GEM Programme to offer a free place to a tenant employed by an NHC member, to help them build a career in housing. And looking ahead, the new Edge Programme will address senior leadership succession and development needs—an issue critical to the sector’s long-term success.

Devolution is also creating new opportunities. Housing partnerships across the North are bringing together housing associations, local authorities, and combined authorities to tackle issues from skills to health. We’re proud to serve as secretariat to seven of these partnerships, strengthening pan-Northern collaboration and ensuring the right people are around the table to improve outcomes for communities.

We create value

Finally, our third priority: we create value. At the core of this is the income generated by our commercial team through NHC Procurement. Over the past five years, our reinvestment model has delivered well over £2.5 million directly back into policy and engagement work. This funding helps us keep membership fees low while offering free networks and events that benefit everyone.

So, when you work with us on procurement, you’re not just securing value for money—you’re enabling all this wider work to happen.

Looking forward

2025 has certainly been a busy year – and while I feel ready for the Christmas break – I look forward to bringing the momentum forward into 2026. We’ll continue to be there for members – bringing you together, representing your views and supporting you to deliver.

Our Renew inquiry on housing-led regeneration will be a big focus and we will work tirelessly to make sure no-one and no-where is left behind. We will continue to work with housing partnerships across the North and will do even more to bring the partnerships together – including with a new event in the summer! We will continue to support members with free events and briefings and resources when you need them most. Our procurement team will work to respond to the ever-changing delivery environment and will connect you with the suppliers that can offer the best solutions.

I hope everyone has some opportunity to relax over the festive break so we can all return refreshed and ready to go in 2026!

We Move the Dial on Northern Policy

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NHC Executive Director (Policy and External Relations) Patrick Murray explains more about this corporate plan objective, including how we represent members, and the approach we take to working with the Government. He looks at how we’ve been moving the dial over the past nine months and the momentous political change we’re seen as a result.

The Spending Review – and the announcements that followed were transformative for the social housing sector and the North. We saw a raft of changes – the £39 billion Social and Affordable Homes Programme with flexibility to use funding for regeneration and around methods of calculating net additionality.  The £16bn National Housing Bank that will mean work can start on sites that would previously have been financially unviable. Alongside this, the £5bn Housing Delivery Fund will support development on more complex brownfield sites – a key priority for the North given that our research has found there is capacity for 320,000 new homes on brownfield land. The 13.2 billion Warms Homes Plan, which was added to at the Autumn Budget will help northern social housing providers continue to improve older, colder homes. The North is leading the way with devolution and Mayors are gaining increasing local control though integrated settlements This backed up with more flexible funding rules reflects the reality that “one size fits all” simply doesn’t work for the North. And let’s not forget the 10 year rent settlement, longer term funding programmes and the consultation on rent convergence.

These were all things the NHC called for in our Spending Review submission, to enable social housing providers to deliver for their communities. We were also pleased to see after the spending review that the Government committed £5bn to the new Pride in Place programme, directly addressing many of the issues raised in our Pride in Place research. This is a clear example of how our influencing work is making a tangible difference.

Some of the changes were achieved collaboratively by the whole social housing sector speaking with one voice on issues such as housing supply and longer-term funding to a government who were willing to listen. Other changes, such as reviewing funding rules which were disadvantaging the North, were more niche arguments that we put forward powerfully.

So, what’s our strategy to bring about change and how do we prioritise the issues we campaign on?

Before joining the NHC I was a civil servant at Homes England, so I’ have direct experience of how policy is formulated. The NHC takes a twin track approach – working with politicians to shape ambition, and Government officials to shape implementation. Politicians want to know how they can fulfil manifesto pledges and deliver for voters in their constituency. It’s our role to show them how the social housing sector can support them to deliver their ambitions while inspiring them to go further with policies which will have a positive impact in the North. Civil servants are looking for the best way to implement policy and need evidence to back up their decisions, which is where our research and real-life examples from members comes into play.

In our member’s perceptions survey you told us that we should not spread ourselves too thinly and to focus on the issues that matter most. Soon after starting at the NHC, I created a Venn diagram which shows how we decide on our policy priorities. Policy areas that matter most to our members and have the greatest impact on the North, and areas where we can achieve meaningful change, will be prioritised.

Our biggest policy priority over the next year will be regeneration because in many areas of the North, housing-led regeneration is needed alongside delivering new homes to drive real change for, and with, local communities.  Renew, our new inquiry, led by the NHC and supported by Homes for the North and Muse, will explore how housing-led regeneration can deliver growth, help tackle the housing crisis, and strengthen communities across the North. We want to work together to make sure no one and nowhere is left behind.

Alongside this we will continue to support members to provide good quality homes. This will include working with government to make sure policy, regulation and funding supports improvement of existing homes in the social and private rented sector. We will continue to engage with the Government about the new Decent Homes Standard and Minimum Energy Efficiency Standards.

We will make a strong case for more funding and decision-making power to be devolved to the appropriate level so that local areas have more control over the outcomes that matter to them. We’ll also support members in a practical way by supporting Housing Partnerships and bringing them together to create a strong united voice.

Warmer Homes have been a longstanding priority for the NHC to address the North’s older, colder homes, and this will continue. To ensure we meet current challenges, later in the corporate plan period, we plan to work with members to look at approaches to making sure communities are better prepared to face any adverse impacts of climate change.

The first nine months nine months of ‘moving the dial’ have been a success and we’re seen meaningful change. However, this is not the time to rest on our laurels. We must maintain momentum and work with Government to make sure funding, and regulation supports members to deliver warm safe and affordable homes across the North.