A housing association has been accused of encouraging its workers to take on debt after it started offering hard-up staff access to loans instead of agreeing to increase pay.
Sanctuary Housing, which has assets of nearly £6billion and a surplus of over £100million, is offering loans through a partnership with fintech firm Salary Finance, with the repayments taken directly from the salaries of workers. Sanctuary Housing sent an internal email to staff announcing workers could access loans of between £1,000 and £25,000.
The interest rates for a loan provided through Salary Finance range from 7.9% to 24.9% APR, while the length of repayment ranges from six to 36 months. One worker told The Mirror: "They're offering us loans when we're in the middle of a strike. It is an absolute disgrace and we're not happy about it. We've already got some staff going to food banks."
Union group Unite said the loan scheme was a "desperate" attempt to try and end strike action by Sanctuary Housing repair and maintenance workers, which started in February and impact around 10,000 homes around London. The dispute centres around a 4% pay rise that was introduced in April 2023, when RPI inflation was 11.4% and CPI inflation was 8.7%.
Sanctuary Housing also cancelled a £500 retention bonus payment introduced at the height of cost of living bonus. It is the first time its staff have taken industrial action. Sanctuary Housing declined to comment.
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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 it ranks by dressing debt up as a benefit. It won’t work.”
Unite regional officer Matt Freeman said: “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. 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.”
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