Housing sector pay predicted to rise 2.3% next year

News19 Nov 2018David Blackman

Pay in the housing sector will increase by a below-average 2.3 per cent in 2019/20, according to a survey of nearly 40 housing organisations.

The poll, carried out by human resources and governance consultancy EMA, showed that budgeted increases ranged from 1 per cent to 3 per cent.

The majority of the 37 organisations indicated they would be consolidating the pay award into base pay, but several said it would be part and non-consolidated.

The 2.3 per cent figure is more than the 2 per cent reported in EMA’s equivalent survey last year but below the 3.1 per cent average annual increase recorded between June and August 2018 by the Office of National Statistics. This marked the highest annual growth in pay since the final quarter of 2008.

In July, the government announced plans to award pay increases of 2.9 per cent extra this year for the armed forces, 2.75 per cent for prison officers and up to 3.5 per cent for teachers.

Ian Robertson, executive director at EMA, said: “The likely pay increase in 2019/20 is an increase on last year (2018/19) where we saw average pay awards of 2 per cent within the sector, however outside the sector we have seen pay awards of 2 per cent plus.

“With the UK heading towards full employment and widely reported skill shortages, it is expected that there will be pressure to continue this upward trajectory of wage growth.

He said that while employers do not need to reconsider their 2019/20 pay award, they should look more closely at mechanisms to recruit and retain staff.

“While pay in the private sector in many cases may be higher and therefore looks more attractive, what is positive – as shown by our total reward survey last year – is the rise in well being benefits within the sector, with the majority of providers offering strong packages which are about more than just take home pay.”

EMA provides recruitment, training and governance services to more than 200 housing providers.