£11.5 million HIP cost revealed

With a budget from 2004 until 2007 set at £16 million, Housing Minister Yvette Cooper confirmed the grand total expenditure for the Department of Communities and Local Government (DCLG) had reached £11,684,725 by the end of January.

Download our news ticker

The majority of the money was spent on external advisers, which accounted for over £5 million of the spent budget, followed by research and area trials, accounting for almost a fifth of the £11 million spent. Area trials and research accounted for £2,645,151, with communications, accounting for over £1.8 million of expenditure. Administration, including the salaries of those working on HIPs policy and implementation, cost £1.5 million.

Get the daily news delivered to your inbox

Cooper, said: “The money has been spent on developing and testing the Home Condition Report and other components of the pack; putting in place a quality assurance framework to protect consumers and guarantee standards; developing the necessary systems and explaining the changes to the public and industry stakeholders.”

Alan Lakey, senior partner at Highclere Financial Services, said: “It is par for the course that a vast sum of money is spent on external advisers. It is the same with the Financial Services Authority. The issue of value for money needs to be addressed, but people are often very good at spending other people’s money.”