Housebuilders spark row over taxpayer cash as they rush to furlough staff – despite making billions off Government's Help to Buy scheme

By Matt Oliver For The Daily Mail

Published:

Housebuilders spark row over taxpayer cash as they rush to furlough staff – despite making billions off Government's Help to Buy scheme

By Matt Oliver For The Daily Mail

Published: | Updated:

Britain's biggest housing companies have furloughed more than 9,000 workers using taxpayer cash – despite making billions of pounds in profit.

Redrow, Barratt, Countryside Properties, Bellway and Crest Nicholson are among the firms using the Government's jobs retention scheme.

Taylor Wimpey will also use the support, with Persimmon the only major builder saying it will not use the scheme.

Down tools: Redrow, Barratt, Countryside Properties, Bellway and Crest Nicholson are among the firms using the Government’s jobs retention scheme

Down tools: Redrow, Barratt, Countryside Properties, Bellway and Crest Nicholson are among the firms using the Government's jobs retention scheme

It is designed to help struggling businesses during the coronavirus crisis by letting them temporarily furlough staff, with the Government paying 80 per cent of their wages up to £2,500 a month.

But its use by big housing companies will raise eyebrows as those who are using it made more than £3.3billion in annual profits last year. 

Several of the firms have also been criticised for raking in huge revenues off the back of the Government's Help to Buy scheme and then handing bumper payouts to bosses and investors.

Rishi Sunak, the Chancellor, has urged firms to request the furloughing support if they are thinking about laying off employees. The scheme could cost the taxpayer more than £50billion in just three months.

John O'Connell, chief executive of the Taxpayers' Alliance, said: 'The Government has to cast a wide net but house-builders should keep in mind that this money comes from taxpayers and they should only seek support if they need it to keep the ship afloat.' 

The building industry has almost been brought to a standstill by the lockdown, with only a handful of firms continuing work. Many have cancelled dividends, cut bosses' pay and slashed costs.

Barratt has furloughed the most employees of any housebuilder, at 5,500 – or 80 per cent of its workforce. It is topping up the remaining 20 per cent of their pay.

The company made £910million in profit last year. It has scrapped a £100million dividend and cuts to executives' pay are expected next week.

Redrow, which made a profit of £406million, has furloughed about 1,700 employees – 75 per cent of its workforce. It has slashed executive pay by 20 per cent and cancelled a dividend worth £37million.

 

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