Decision

Current regulatory judgement: The Abbeyfield Society (15 November 2023)

Updated 15 November 2023

Applies to England

RSH Narrative Regulatory Judgement

• Provider: The Abbeyfield Society
• Regulatory code: H1046
• Publication date: 15 November 2023
• Governance grade: G2
• Viability grade: V2
• Reason for publication: Changed basis for governance and viability grades
• Regulatory route: In Depth Assessment

Regulatory judgement

This regulatory judgement confirms the regulator’s existing assessment of The Abbeyfield Society’s governance and financial viability (G2/V2).

Based on evidence gained from an In Depth Assessment (IDA), the regulator has assurance that The Abbeyfield Society (Abbeyfield) continues to comply with the Governance and Financial Viability Standard.

Our previous IDA in October 2019 identified financial losses in the core social housing business, the detrimental financial impact of mergers with members of the wider Abbeyfield movement, and governance weaknesses, including Abbeyfield’s risk framework. It noted that the impact of strengthened strategic planning was not yet reflected in financial performance.

Since then, Abbeyfield has changed its governance arrangements in relation to the wider Abbeyfield movement, which has enabled it to focus on the risks of Abbeyfield itself. It has also refreshed its leadership, and revised its strategic objectives and organisational arrangements. The revised strategy prioritises strengthening Abbeyfield’s financial position and is based on an updated understanding of the business including externally commissioned enhanced stock data. Abbeyfield now needs to develop and implement its delivery structures and plans, and continue to refine its governance arrangements to ensure they facilitate adequate and timely oversight.

Abbeyfield meets the regulator’s viability requirements and has the financial capacity to deal with a reasonable range of adverse scenarios, however it needs to manage material risks to maintain compliance. Although the business plan is forecasting a return to operating surplus, this may be adversely affected by legacy costs. Additionally, the leadership needs to manage a further asset disposal programme effectively.

Other providers included in the judgement

None

About the provider

Origins

Abbeyfield was formed in 1956 and is a company limited by guarantee and a registered charity. It provides supported sheltered housing and residential care homes for older people.

Registered Entities

Abbeyfield is the only registered entity.

Unregistered Entities

Abbeyfield has two unregistered subsidiaries. Abbeyfield Properties Limited is a non-charitable company limited by shares which manages Abbeyfield’s development activities. Abbeyfield Research Foundation is a charitable company limited by guarantee which funds research into issues affecting older people.

Geographic Spread and Scale

Abbeyfield operates nationally and currently owns and manages 98 houses and care homes providing around 1,800 bed spaces. The majority of bed spaces are for supported housing, but it also provides accommodation for residential care and affordable rent.

Staffing and Turnover

At 31 March 2023 Abbeyfield employed 913 full-time equivalent staff and its turnover for the year ended 31 March 2023 was £50.6m.

Development

No material development is planned.

About our judgements

Key to Grades

Governance:

	Compliant
G1	The provider meets our governance requirements.
G2	The provider meets our governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance.

	Non-compliant
G3	The provider does not meet our governance requirements. There are issues of serious regulatory concern and in agreement with us the provider is working to improve its position.
G4	The provider does not meet our governance requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Viability:

	Compliant
V1	The provider meets our viability requirements and has the financial capacity to deal with a wide range of adverse scenarios.
V2	The provider meets our viability requirements. It has the financial capacity to deal with a reasonable range of adverse scenarios but needs to manage material risks to ensure continued compliance.

	Non-compliant
V3	The provider does not meet our viability requirements. There are issues of serious regulatory concern and, in agreement with us, the provider is working to improve its position.
V4	The provider does not meet our viability requirements. There are issues of serious regulatory concern, and the provider is subject to regulatory intervention or enforcement action.

Note: The use of an asterisk (*) against a grade indicates that the assessment refers to a provider that is designated as being for-profit.

Definitions of Regulatory Routes

In Depth Assessment (IDA): An IDA is a bespoke assessment of a provider’s viability and governance, including its approach to value for money. It involves on-site work and considers in detail a provider’s ability to meet its financial obligations and the effectiveness of its governance structures and processes.

Stability Checks: Based primarily on information supplied through regulatory returns, a Stability Check is an annual review of a provider’s financial position and its latest business plan. The review is focused on determining if there is evidence to indicate a provider’s current judgements merit reconsideration.

Reactive Engagement: Reactive engagement is unplanned work which is triggered by new information or a developing situation which may have implications for a provider’s current regulatory judgement.

Stability Checks and Reactive Engagement: In some cases, we will publish narrative regulatory judgements which combine evidence gained from both Stability Checks and Reactive Engagement.

For further details about these processes, please see Regulating the Standards.