Housing Minister Grant Shapps has announced the abolition of the Tenant Services Authority (TSA), preserving its vital economic regulation functions in a new streamlined Homes and Communities Agency (HCA), whilst scrapping tasks considered unnecessary by Ministers.

The end of the TSA is part of wider Government reforms of public bodies announced today by Minister for the Cabinet Office, Francis Maude. The changes will radically increase the transparency and accountability of public services, and restore political accountability for decisions which affect people's lives and the way taxpayers' money is spent.

The move will put local people in real control of driving up the quality of social housing with their landlords, and keep regulation's primary focus on ensuring that lenders have confidence to invest in social housing. It follows a wide-ranging review of the TSA commissioned by Mr Shapps in June.

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Under the plans, England's eight million social housing tenants will receive strengthened powers to ensure that their landlords provide quality housing and are held to account when problems arise. Landlords will be expected to support tenant panels in order to give tenants the opportunity to scrutinise the services being offered and to be involved in resolving disputes.

Mr Shapps said: "The Tenant Services Authority was set up to oversee the financial viability of social housing and to protect tenants. The Coalition Government is deeply committed to both of these important roles. But in practice the TSA made little difference on the ground with far too many tenants still frustrated by their lack of real power to drive up standards.

"That's why I'm putting tenants in the driving seat so they can scrutinise the services offered by their landlords and hold them to account. They will also be key in resolving disputes and local councillors, MPs or tenant panels will have a new role in standing up for tenants and driving up standards. It's about encouraging local solutions to local problems.

"But with waiting lists at record levels and a record budget deficit to deal with we need better value for money in the sector so money goes further. The new streamlined regulatory system I am putting in place will focus on this vital objective. Through healthier balance sheets lenders have the confidence to invest in social housing."

(CD/KMcA)