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Thousands of housing association staff furloughed as government’s job retention scheme opens
Housing associations across the UK have furloughed thousands of their workers as they attempt to shield their businesses from the economic impact caused by coronavirus.
Inside Housing received responses from 40 large associations stating whether they have furloughed staff, with 21 confirming they were using the government’s Job Retention Scheme (JRS), which aims to mitigate financial difficulty while protecting jobs during the pandemic.
In total 2,889 members of staff from these associations have been furloughed.
Scotland’s 93,000-home landlord, Wheatley Group, has furloughed 518 staff members, 17% of its total workforce, while 32,000-home Radian has furloughed 227 staff – 16.5% of its total workforce.
North West-based Torus has furloughed nearly a third (456) of its 1,400-strong workforce in response to the crisis, while L&Q, Sovereign, Peabody and Anchor Hanover have also furloughed staff.
Platform Housing Group said it has furloughed 348 staff members – 27% of its workforce.
Of the 56 associations contacted by Inside Housing, 15 said they had not furloughed staff, while two associations said it was still being considered as an option. A total of 16 associations did not respond.
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The JRS, announced in late March, promises to pay 80% of wages of workers up to a maximum of
£2,500 per month to avoid a spike in unemployment.
The National Housing Federation (NHF) said that the majority of staff furloughed by associations were from “non-essential roles”, with several associations telling Inside Housing that those furloughed were back office staff not needed while the business was carrying out emergency repairs only.
The NHF confirmed this week that it had furloughed a third of its own staff.
The majority of those that have furloughed staff said that where possible they have sought to redeploy staff as a priority.
Greg Campbell, partner at Campbell Tickell, said: “Furloughing staff is plainly better than redundancy – it is a demonstration that organisations will be looking to get people back working as soon as possible.”
But he added: “If organisations are saying they are not sure how long they will be viable at present rates of activity, then yes, it’s possible that redundancies will happen.”
Jamie Gamble, partner at law firm Ward Hadaway, told Inside Housing that associations should be considering the legal implications involved in furloughing staff.
He said: “The position is complex where you have a mixture of public and private funding and to what extent are you prevented from furloughing because of being in receipt of public funds.
“The principle underpinning this is whatever you do, you should not ‘double recover’ for any employees from your normal public funding and the JRS. You can’t continue to get money to fund something and then furlough them and claim 80% of their wages – that’s double recovering form the public purse.”
Mr Gamble suggested that associations which have already furloughed should now consider an exit plan including whether redundancies, wage cuts, job sharing and part-time working are necessary.
Some organisations, including Notting Hill Genesis and Riverside, are instead increasing staff to deal with demand in areas including care and support.
Riverside has employed around 250 agency temps to cover frontline staff who are currently ill or self-isolating.
Which housing associations have furloughed staff members?
| Total | 2,889 | ||
| Association | Furloughed staff? | Number of staff furloughed | Extra information |
|---|---|---|---|
| Wheatley Group | Yes | 518 | |
| Torus | Yes | 456 | |
| Platform | Yes | 348 | |
| Together | Yes | 265 | |
| Radian | Yes | 227 | |
| Thirteen | Yes | 200 | |
| L&Q | Yes | 150 | |
| Vivid | Yes | 150 | |
| Notting Hill Genesis | Yes | 120 | Recruiting extra care and support staff |
| Peabody | Yes | 103 | |
| Bromford | Yes | 85 | |
| Catalyst | Yes | 70 | |
| Optivo | Yes | 62 | |
| Gentoo | Yes | 61 | |
| Stonewater | Yes | 49 | |
| Aspire | Yes | 11 | |
| South Yorkshire Housing Association | Yes | 7 | |
| Longhurst | Yes | 5 | |
| Metropolitan Thames Valley | Yes | 2 | |
| Sovereign | Yes | n/a | |
| Anchor Hanover | Yes | n/a | |
| Radius | Still considering | ||
| Apex | Still considering | ||
| LiveWest | No | ||
| Network Homes | No | ||
| Karbon Homes | No | ||
| Clarion Housing Group | No | ||
| A2Dominion | No | ||
| Riverside | No | ||
| Orbit | No | ||
| PA Housing | No | recruited 32 extra working on out-of-hours contracts, support calls etc. | |
| Southern Housing Group | No | board has approved furloughing as an option | |
| Settle Group | No | ||
| Watford Community Homes | No | ||
| Curo | No | ||
| EMH Group | No | ||
| Midland Heart | No | ||
| WHG | No | ||
| Home Group | No |
Other associations have subsequently provided their furloughing numbers. Coastal has furloughed 99 staff and Taff has furloughed 5.
Inside Housing also contacted Places for People, Flagship, Pobl, Cadwyn, Your Housing Group, Housing 21, Regenda, Magna, Jigsaw, Wrekin, Citizen, Sanctuary and Accord
