Care staff may face redundancy as Kirk hit by credit crunch

The Church of Scotland is consulting on a wave of redundancies after losing tens of millions in the economic downturn. It is understood up to a quarter of the 80 staff at the Edinburgh headquarters of the Kirk’s CrossReach service, part of a 200-year-old practice of providing social support, could face redundancy.

The service is one of the largest care providers in Scotland and helps homeless people in centres such as Kirkhaven House in Glasgow, which focuses on those with a long-standing addiction, or Cale House in Inverness, which offers flats to people coming out of long-term hospital or rehabilitation stays.

CrossReach employs 2000 across the country with 80 services involving children and families, old people and those with mental health problems. It has an annual expenditure of £45m.

The move comes after The Herald revealed the credit crunch led to a crash in the value of Kirk investments by more than £89m in the space of one year.

Such is the looming financial crisis for the Church of Scotland that as well as the redundancies, cutting ministers’ stipends or the number of ministers and abandoning parishes altogether are also under consideration.

The Kirk had to act after it emerged a shortfall in income will lead to reserve coffers, standing at £59m, running dry by 2018.

It is understood the first round of redundancies will be at Charis House in Edinburgh, possibly affecting some in the fundraising department.

Reverend Sydney Graham, convener of the Social Care Council of the Church of Scotland, said: “CrossReach is entering into a period of consultation with its central services staff following a review which recommends savings in staffing and other costs.

“Sadly in the current financial climate savings of £903,000 require to be found in order to safeguard, as far as possible, frontline services to service users in its more than 80 social care units throughout Scotland.

“The report recommends a reduction of 18 posts and is now the subject of consultation with staff. The council have appointed a number of council members to a consultation group who will consult with staff and provide a report on the outcome of the exercise to the next full meeting of the council.

“At this stage, pending the final outcome, requests to consider voluntary redundancy have been invited from staff.”