“I have directed Hackney to produce a budget strategy to start the process of getting them back into balance. My Department will be writing separately to the council about how they can continue to work to return to financial stability, without the help of Government resources, at the earliest possible time. To assist, the council’s leadership has agreed to appoint an independent person to monitor financial progress.

“It is now for Hackney’s elected members and senior staff to ensure that people in Hackney see very big changes. It will involve tough decisions to tackle the years of failure and it will be painful but the Government is clear it must happen. Hackney Council cannot be allowed to fail its people again.

Alistair Darling, Secretary of State for Work and Pensions said:
“Hackney’s residents deserve a good quality benefits service, which has been lacking for too long. No one should have to wait several months for their Housing and Council Tax Benefit claims to be paid. Poor service affects some of the most vulnerable people. It can also affect the financial positions of Hackney’s social and private landlords.

“I have therefore set Hackney a challenging direction to clear its long-standing backlog of work by the end of this year. I shall expect them to do this to acceptable standards and without detriment to current and new work. My Department is working closely with Hackney and has supported them in rebuilding their benefits service. They have made an encouraging start. The momentum must be maintained. We shall continue to monitor the situation closely”

Estelle Morris Secretary of State for Education and Skills said:
“This direction will enable Hackney to establish a new body to be responsible for the management and delivery of education services in the Borough, so as to provide much needed financial and management stability. We have already, with Hackney Council, appointed a joint team to identify the optimum arrangements for the structure and role of this new body. Once this team has reported at the end of September we will support the local authority in swiftly putting in place new arrangements, designed to promote and maintain high standards in education for everyone in Hackney.”

Margaret Beckett Secretary of State for Environment, Food and Rural Affairs:
“Hackney must improve their dismal recycling record and their poor overall performance on waste collection services so that residents get a quality service at a price they can afford. To make this happen the Council must secure the investment that this service desperately needs, raise public awareness about the need for changes in the local culture in the handling of waste, and ensure local people are able to recycle their waste.”

Health Minister Jacqui Smith said:
“It is vital for some of the most vulnerable people in Hackney that social services continue to deliver and improve their services. This direction will require Hackney Council to work with the local NHS to review services for older people and mental health services to ensure that they are delivering best value.

The Social Services Inspectorate (SSI) has been working with Hackney. We have seen some progress in social services and are keen to see that this continues – so that the people of Hackney get the services they need and deserve. We will maintain this support and monitor improvements carefully.”