England: Muir Group announces redundancies due to rent reductions
Chester-based housing association Muir Group has blamed rent reductions imposed by the UK government after announcing staff redundancies.
In a statement from its chief executive, Catherine Dixson, the organisation said that eight positions currently vacant will be axed, while staff are to be consulted over an unspecified number of potential redundancies.
The news follows warnings from Macclesfield-based Peaks & Plains Housing Trust and Gentoo that redundancies were “inevitable” as in the face of reductions in social housing rents.
In the summer Budget, the government announced it would require housing associations to cut social rents by 1 per cent a year over the next four years; Muir said this will cost the organisation £4 million a year in reduced income during this period.
“As a consequence we have to reduce our costs,” said Dixson. “As so much of what we do involves people, it is inevitable that to reduce our costs necessarily means fewer jobs. It is with great regret and sadness that we find ourselves having to remove eight vacant positions from our current establishment. We are also starting consultation with a number of staff whose posts are at risk of redundancy.
“In reaching these difficult decisions we have taken into account the range of services that we offer our tenants, and will in future adopt a clear focus on statutory duties and landlord obligations with fewer added value services. However we are determined to protect core services to our tenants wherever possible.”
Dixson added there may be further cost-cutting efforts to come, with further announcements expected in the New Year.