David Cameron gave a puzzling response at prime minister’s question time this week when he was invited by opposition MP Teresa Pearce to condemn the board of Gallions Housing Association for approving a “non-contractual redundancy pay-off of £397,000” to its chief executive.
The PM replied:
“Some of these payoffs are completely unacceptable and we need to make sure that local authorities properly take responsibility for stopping such high payoffs.”
Local authorities have no jurisdiction over the board of independent housing associations which are regulated by the Homes and Communities Agency.
The decisions around the departure of the chief executive were a significant factor in the recent regulatory judgement which downgraded the assessment of the association’s governance.