Derby council introduces mortgage incentive to lure new social workers

May 2, 2016 by Brendan O'Neill

Borrowers

In a bid to attract new social workers, Derby City Council has introduced an incentive scheme, offering £10,000 towards the mortgage of social workers.

This is believed to be the first scheme to offer money towards mortgages to exist in the UK. Council chiefs have said that the scheme will cost far less than the figure it is currently paying for agency workers. There is currently a shortage of social workers in Derby, with a deficit of 25 posts. These positions are usually covered by temporary staff provided by agencies, which costs an average of £1,250 a week.

Under the new mortgage incentive scheme, social workers will receive the £10,000 loan once they have successfully completed a six-month probation. Should the employees remain with the council for a minimum of five years, the loan won’t have to be repaid.

According to a spokesperson for the council, the salary of a social worker would have to be greatly increased to match those of agency workers. Salaries have already been increased, but agencies charge councils a higher rate so that temporary social workers can be paid more.

Agency workers have cost Derby City Council £1.4 million in the last year, while employing permanent social workers would cost less, saving the council money. Qualifying criteria for the mortgage incentive includes having two years’ experience and buying a property within the boundaries of Derby. A CeMAP qualified mortgage adviser may be able to help buyers within the scheme find a suitable mortgage product, maximising the £10,000 incentive.