Ryan FowlerSanctuary Housing, boasting assets close to £6 billion, has responded to its employees’ financial struggles by offering access to loans instead of raising wages. This move comes during ongoing strikes by its London-based workers over pay concerns.
Unite, the union, criticised the housing association, the largest third-sector employer in the country with 14,000 predominantly low-paid staff, for encouraging its workers to incur more debt. The union argues that Sanctuary should instead focus on sustainable financial improvements through trade union recognition and fair wage negotiations.
Unite general secretary Sharon Graham said: “It is no coincidence that Sanctuary offered struggling staff access to loans through a third-party lender just as strikes by its London workers are escalating. This sop to the workforce is a desperate move by an employer trying to make itself look considerate to the financial struggles of its workers when it is anything but. In reality, this multi-billion-pound employer is trying to get out of paying a fair wage increase and stop growing unionisation amongst its ranks by dressing debt up as a benefit. It won’t work.”
The partnership with fintech firm Salary Finance allows for loan repayments to be deducted directly from employees’ salaries, offering loans between £1,000 and £25,000. Sanctuary claims the initiative is aimed at reducing “money related stress” among its workforce.
Unite regional officer Matt Freeman highlighted the severity of the situation: “Sanctuary workers on the picket line in Hackney are using foodbanks because of their low wages. But instead of putting forward a fair wage increase, which this extremely wealthy employer can well afford, Sanctuary is offering the chance for workers to take on debt.”
The strikes, affecting approximately 10,000 homes in the capital, began in February and mark the first industrial action in the association’s history. The dispute centers on a four percent pay rise implemented in April 2023 against an RPI rate of 11.4% at the time, effectively reducing workers’ real income. Sanctuary has consistently refused to enter collective bargaining agreements with any union.
Freeman concluded: “This ridiculous and backhanded attempt at an offer doesn’t change a thing – the strikes will continue until Sanctuary recognises Unite and puts forward an acceptable deal.”
