Pay rises for housing association staff came to a virtual halt over the past 12 months due to uncertainty over future funding for social housing projects, according to pay data by XpertHR.
The XpertHR housing sector salary survey found that basic pay rose by 1.4% in the 12 months to July, a slow down on last year when it rose by 3.4%.
Personnel Today reported in 2009 that housing associations predicted rises in basic pay would fall to 1.2% this year due to economic pressures.
The survey also found that total earnings, which include bonuses and location allowances, increased by just 0.9% in the housing sector, compared with 3.9% in 2009.
Mark Crail, head of salary surveys for XpertHR, said that last year’s survey found pay rises had remained buoyant in the previous 12 months, mostly because pay rises had already been agreed before the worst effects of the recession hit the sector.
“People are beginning to feel the impact of the country’s economic problems in their pockets. Across the economy as a whole it looks as though the average pay rise will be in the region of 2% in 2011. It is too early to be certain, but it looks as though the social housing sector will struggle to keep up with this,” he said.
The survey included data on 8,463 employees in 25 housing associations and is based on anonymised payroll data.