3 Corporate Governance Report
PRINCIPAL RISKS AND UNCERTAINTIES
Regulatory Risk
Around half of our customers are private fee payers and, where we do contract with local authorities, we do so primarily on a spot basis rather than using block contracts. Our care home portfolio is majority freehold and unencumbered and we therefore are not liable for rent payments that are material for the organisation. We therefore retain flexibility in the event of funding pressure. As a specialist provider of housing to older people, a high percentage of residents in our rented housing are above pension age and are therefore largely exempt from Universal Credit. Our Be Wise service helps residents to claim the benefits they are entitled to. Since 2012, this service has supported the generation of additional income or energy savings for our residents. Following an expansion of the team in February 2023, we have continued to secure further additional income for our residents. Please see the Strategic Report and Operating & Financial Review for further details on how the Be Wise service has helped our residents. In residential care, along with other large providers and bodies such as the National Care Forum, we are engaging with the Department for Health and Social Care (DHSC) to ensure that all policy implications are fully understood, and we are continuing to analyse the impact of the reforms. Anchor’s turnover is predominantly derived from social housing lettings and residential care. Lettings income may be impacted by changes in UK government policy, and in particular policies relating to the rent it is able to charge and the rate at which the rent may index over time. We continue to keep under consideration how Anchor’s residents may be impacted by changes to Housing Benefit and Universal Credit. In residential care, under the planned reform of social care funding, provisions in the Care Act 2014 (clause 18.3) could enable self-funders to ask their local authority to arrange their care for them so that they can benefit from lower rates. There is potential for fees to reduce towards local authority rates and, if operational contributions from care homes decrease, this would present risks to obligations. Anchor maintains a governance system suitable to meet current regulatory requirements and monitors the publications, updates and websites of the CQC and RSH to ensure its governance system remains valid. We provide regular updates and training to managers and colleagues to ensure compliance with the regulatory requirements. This includes both mandated training and training to enhance broader skills. Anchor’s housing activities are regulated by the Regulator of Social Housing (RSH) in accordance with the Regulatory Framework. As well as continued focus on maintaining compliance with economic regulatory standards, we have focused on readiness to meet new Consumer Regulation Standards that came into effect from 1 April 2024. The new regulations see an expansion of consumer standards that will give the regulator greater powers to intervene in much broader perceived failings, and not those limited to residents perceived to be at serious risk of harm. This change sits alongside a suite of changes intended to drive a more consumer-focused social housing regulatory regime, including the requirement for all providers to report on a set of Tenant Satisfaction Measures (from June 2024). The registered care services of Anchor are regulated by the Care Quality Commission (CQC). The CQC has a wide set of powers and can take enforcement action against registered providers of social housing and managers that breach the regulations.
Funding in health and social care
48 Anchor Hanover Group Annual Report & Financial Statements 2024
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