‘Bonuses for refusing home repairs’ - Claims of CWH ‘incentive scheme’ means staff reluctant to approve estates work

Published: 18 February 2011
by JOSH LOEB

TENANTS, residents and opposition councillors are demanding City Hall launches an investigation into a lucrative bonus scheme that may have rewarded housing staff for minimising spending on repairs.

CityWest Homes (CWH) – the arms length management organisation wholly owned by Westminster City Council and in charge of managing its housing stock – has come under fire after details of its “incentive scheme” were leaked.

An employee at CityWest claimed there was a conflict of interest between residents’ needs and maximising payouts.

In the past year the organisation has paid bonuses of almost £600,000 to 226 employees – the highest single bonus paid being £39,769.

A housing officer, who spoke to the BBC on condition of anonymity, said bonuses depended on targets which sometimes involved saving money by delaying spending on repairs.

They said: “It’s money driven – if you can save money you’ll be classed as doing much better. If you don’t achieve the savings target set by the director, that could cost you your bonus. If an employee is refused funding for repairs, they are never going to push for it. That might be seen as ‘affecting their performance’ and impact on their bonus. If you don’t follow their corporate outlook you won’t get a bonus, simple as that.”

Westminster Labour leader Paul Dimoldenberg has written to council chief executive Mike Moore and CityWest Homes chief executive Mark Hoyland demanding an inquiry.

He said: “I am sure that CWH tenants waiting for long-standing repairs to be carried out will be very concerned if bonuses are being awarded to staff in return for minimising expenditure on repairs. I am also concerned about the reference to CWH’s ‘corporate outlook’ which appears to be geared towards rewarding staff rather than serving tenants and leaseholders.”

John Brett, the former chairman of the Wessex Gardens Estate Residents’ Association in Bayswater, is currently fighting for compensation from the council for people who suffered heating problems over the bitterly cold winter months.

He said bonuses should not have been paid to staff and backed calls for an inquiry.

CityWest chief executive Mark Hoyland said: “Our performance-based incentive scheme rewards staff for outstanding achievement and we believe no conflict of interest exists. 

“The scheme is linked to customer satisfaction, operating within budgets and ensuring estates are well maintained. Our survey shows satisfaction with value for money and repairs has risen and overall satisfaction has gone up by 4 per cent to 79 per cent.”