Redundancy notices issued after housing associations ‘left in dark’ over fund

Housing associations are issuing redundancy notices to workers as they claim they have been “left in the dark” over when they will receive “lifeline” funding from the Scottish Government.

The Scottish Federation of Housing Associations (SFHA) said its members were due to receive £4 million as part of the current round of the Investing in Communities fund – which was set up by former first minister Nicola Sturgeon.

A number of housing associations were awarded cash by the scheme, which the Scottish Government said was set up to help with projects tackling poverty, with funding targeted at the “most disadvantaged communities”.

But the SFHA claimed there have been significant delays in notifying associations on whether money as part of the 2023 to 2026 cycle will still be available to them.

It is absolutely devastating that housing associations have been forced to issue redundancy notices to dedicated staff members delivering lifeline work in Scotland’s communities

Claiming housing associations have been “left in the dark”, SFHA chief executive Sally Thomas said some had been “forced to issue redundancy notices to dedicated staff members delivering lifeline work in Scotland’s communities”.

The SFHA has now warned that unless funding letters are issued urgently, jobs could be lost.

Sixteen housing associations across Scotland currently benefit from money as part of the scheme, which is scheduled to run until 2026.

Housing associations use cash from the fund to deliver a range of community activities, ranging from children’s dance classes and gardening groups to vital food hubs and energy advice services.

Ms Thomas said: “It is absolutely devastating that housing associations have been forced to issue redundancy notices to dedicated staff members delivering lifeline work in Scotland’s communities.

“The Scottish budget was passed in February, so the Scottish Government have known for some time what money was available.

“This is a position housing associations should never have been in – left in the dark over funding and for so long.”

This funding is a lifeline for disadvantaged communities across Scotland, at a time of increasing living costs and should be a priority for government to resolve

The SFHA chief executive continued: “We have warned the Scottish Government for some time about potential job losses, so it’s simply unbelievable that this has dragged on for so long, with more and more jobs being lost, social tenants and communities are being badly let down at a time they most need support.”

She added: “This funding is a lifeline for disadvantaged communities across Scotland, at a time of increasing living costs and should be a priority for government to resolve.

“The housing associations affected are waiting daily for certainty as people and communities suffer.”

A Scottish Government spokesperson said: “We are fully committed to the Investing in Communities Fund and grants will be issued imminently.

“The release of funding was subject to the passage of the Scottish Budget for 2025-26.

“The Fund will support projects which aim to address poverty with £9.2 million over the course of this year. This represents an increase of £314,000 on last year.”