THE council's under-fire housing body Redbridge Homes has spent nearly three quarters of a million pounds on temporary management staff in just two years, the Guardian can reveal.

Information obtained by this newspaper shows there are currently four members of staff on temporary contracts, one of whom has been employed that way for two years.

A Redbridge Homes insider told this newspaper that one staff member had even been paid a rate of £500 a day.

The revelation comes after the body, which maintains the borough's council housing stock, was criticised for failing to get a two star rating in an inspection by the Audit Commission last month.

Its failure to reach the target meant Redbridge missed out on a £39 million Government grant for repairs to the borough's housing.

The report criticised the body for its high management costs, and stated: "the organisation does not ensure that value for money is delivered in a number of service areas."

However the report did say things were improving and said the condition of tenants’ homes was "comparatively" good.

But one Redbridge Homes insider told the Guardian: "Residents live like paupers yet management get hefty salaries.

"One member of management gets paid £500 a day...this is money which council tenants could benefit from if it was used for repairs on their properties.

"Everyone is tired of the management."

According to the Audit Commission report: "A significant amount of dissatisfaction was expressed in the March 2008 staff survey" but that work had been made to address these concerns and that "morale was rising" among staff.

Beryl Thornton lives in Carlton Terrace in Wanstead, a council block occupied by tenants and leaseholders which has been hit by leaks and structural problems ever since 1971.

She said: "It makes me absolutely furious to know they've been spending so much money on the management because it could have been spent on much better things like the major works we desperately need.

"It's ridiculous. And we were supposed to have some repairs done in July but now they've failed the test and didn't get the Government money so they're not going to get started on them until September or October."

In total, Redbridge Homes spent exactly £724,296.66 on temporary contracts for management staff between May 2007 to May 2009.

Of the four managers, one has been on a temporary contract for two years, with the others working for 14 months, seven months and two weeks respectively.

A spokeswoman for Redbridge Homes said: "Redbridge Homes have taken on temporary staff for a range of duties over the past two years as it has provided flexibility in delivering services and meeting new service demands in a fast changing environment.

"Rates of pay for temporary staff are dependant on the role and the level of seniority and can vary either higher or lower than equivalent full time staff.

"Staff at Redbridge Homes are committed to improving services and we have been busy since the Audit Commission Inspection in February.

"We have responded to many of the recommendations in the report including on Value for Money issues.

"We are committed to making £412k of savings on our management fee this year and to also drive savings through the repairs service. We believe we are now in a better position to improve still further."