An East London authority has made significant progress in reducing its reliance on temporary workers, though it still expects to spend nearly £40 million on agency staff this financial year amid ongoing recruitment difficulties.
Substantial Financial Improvement
Hackney Council has forecast its expenditure on agency staff will reach £39.6 million by the end of March 2026, according to financial reports published last month. This represents a dramatic improvement from the previous year, when the council spent a staggering £53 million on temporary workers.
Council finance chief Cllr Robert Chapman acknowledged the reduction, stating the authority has been focusing on hiring and retaining more permanent employees. However, he admitted persistent challenges in recruiting for "specialist or hard-to-fill roles" continue to necessitate temporary staffing solutions.
Housing Directorate Leads Spending
The council's Climate, Homes and Economy directorate has emerged as the biggest spender on agency staff, with £10 million allocated so far this year. This department oversees critical services including housing development and the borough's decarbonisation programme.
Documents reveal that more than half of this department's temporary staffing budget - approximately £6.4 million - has been used to fill permanent vacant positions. A council source described interim and external contracts within this department as "endemic", noting that the directorate has experienced high turnover of senior directors since 2022.
Broader Council Restructuring
The staffing challenges come amid wider organisational changes within Hackney Council. Mayor Caroline Woodley previously announced plans to address a projected £51 million budget gap over the next three years through a 'Corporate Transformation' project.
In September, Mayor Woodley clarified this would involve cutting 220 posts within the council, with approximately 90 redundancies planned. She emphasised these reductions would be achieved "primarily" through decreasing agency staffing levels.
The council's October 27 report indicated the authority was "already forecasting a drastic reduction in agency spend" after redesigning council services. This follows summer tensions when proposed restructuring in the housing department prompted strike threats, though walkouts were eventually called off after negotiations.
The Local Democracy Reporting Service also understands the council recently deleted its chief officer role of Strategic Director of Housing Services.
Cllr Chapman told the Local Democracy Reporting Service: "Our aim is to maintain a stable, skilled workforce that provides consistent, high-quality services for Hackney residents."
The recruitment challenges faced by Hackney reflect a national trend, with a 2024 Local Government Association survey revealing that over 90% of councils struggle to fill roles in at least one occupation area.
