McCarthy expands empire in ODPM shake-up

Richard McCarthy is to add the Housing Corporation to his ODPM empire as the department undergoes a radical restructuring.

The changes will also lead to the disbandment of the Community Housing Taskforce and see alterations at the Neighbourhood Renewal Unit, headed by Joe Montgomery, and the Social Exclusion Unit, led by Claire Tyler.

Whitehall sources said the moves – instigated by permanent secretary Mavis McDonald – come ahead of the departure of Genie Turton, presently director general for housing, planning and homelessness, on 1 April.

Turton, who has been in her job at the ODPM since 2000, will not be replaced. Her responsibilities will pass to McCarthy, who is director general for sustainable communities – apart from the homelessness brief, which will be taken over by Tyler. Neither Tyler or Montgomery is to lose their job, an ODPM spokesperson confirmed.

McCarthy will emerge as a serious power-broker at the ODPM after 1 April, just four months after taking up his post following a move from Peabody Trust (see "McCarthy's team", below).

Speculation about the future of the corporation and English Partnerships is likely to mount in the coming months now that the corporation is set to join EP in McCarthy's stable of responsibilities. Deputy prime minister John Prescott has previously admitted that he did consider merging the corporation and EP, but decided against it.

The disbanding of the Community Housing Taskforce is also set to take effect from 1 April and has caused consternation in the housing sector. The taskforce advises local authorities on which stock options to follow in order to meet the decent homes target by 2010. It is likely that its 11 advisers will transfer to the nine government offices, with an internal move likely for taskforce head Hilary Bartle.

Sarah Webb, director of policy at the Chartered Institute of Housing, said: "This is absolutely appalling and is being done for all the wrong reasons."

Webb, a former head of the taskforce, added that the team, whose 12 members cost the ODPM about £500,000 a year and mostly have 18 months left to run on their contracts, were "an easy target".

"They are plugged into the ODPM but are outside it and that is seen as their great strength," she said. "If the government is serious about the 2010 target and the options appraisal for all councils by 2005, it will struggle as it has just got rid of the team most likely to deliver them."

An ODPM spokeswoman said: "We are currently considering the location of the Community Housing Taskforce and whether it should be placed within the various regional government offices. Its tasks and targets are not under consideration and remain unchanged."

It comes at a time when many are questioning the government's commitment to meeting the decent homes standard.

Housing minister Keith Hill recently admitted that he had "torn up" a former commitment that all tenants had a right to a decent home. This led a backbench committee of MPs to call for the minister to clarify whether or not the pledge to bring homes up to scratch by 2010 would be met.