Interest free loans are being provided by Starbucks to its partners in an effort to help them pay for housing costs, specifically the rent deposit on a new home or flat. The company is trying to assist its staff that are on a low income and the funds being offered can help pay for some of the moving costs that they are faced with. The Home Sweet loan programme is just one scheme that is available to employees of this company.
Starbucks has over 750 retail stores across the UK, with more opening monthly. They are based in all areas, including England, Scotland, Wales, and Northern Ireland. With the cost of a deposit now averaging over £1,200, it is a struggle for many staff members to pay this. All employees of the company, no where which area or city they are local to, can apply for an interest free loan to help with this cost.
As many people know, it is very difficult for a retail worker living on the National Living Wage to pay for the cost of housing in the UK. Rents, as well as the security deposits, are increasing faster than incomes. Starbucks, partnering with Shelter as well as other private companies, wants them Home Sweet loan programme to help families that are threatened by homelessness or those that want to move into a safer or more decent accommodation.
Any employee of the retailer can apply for an interest free loan. They do need to have worked for the retailer for over 12 months and be employed in a company operated store. So there are some criteria in place.
The aim is to assist any person that is struggling with coming up with the cash for their damage deposit. However the Home Sweet loan programme will tend to help younger people, including those aged under 25. Partners under that age make up about 50% of the retailers base. They often do not have the savings (or the income) to come up with the money on their own.
When the interest free loan has been approved by Starbucks, the money will be given to the employee within 4 weeks. The aim is to get the funds to the staff member as soon as possible. However before the cash is given out, the partner will need to agree to a repayment plan. While the Home Sweet loan programme is interest free, the principal still does need to be paid back within 12 months.
Not only is Starbucks offering the loan programme to its staff, but it is also increasing wages. The National Living Wage is in effect for all of their stores in the UK. New wages will not only assist employees, but apprentices will also be covered by the policy. This extra money coming in on a pay cheque will not only help the partner with their housing costs, but the extra money will assist with other bills ranging from food to gas and even holiday expenses.
Starbucks is working with Shelter and their Tenancy Deposit Loan Scheme on the Home Sweet loan programme. This means that not only may the partner of the company get help paying for their deposit, but they can also get other housing support from Shelter. After all they Shelter is the country’s largest not for profit organisation that aims to address housing needs across the UK. Therefore they will also provide Starbuck’s partners with advice, counseling, tenancy support services, and much more.
The Home Sweet loan programme can also be combined with local council rent deposit schemes or programmes run by charities. Employees can apply for assistance from any of the numerous services that are available to them. They are not limited just to using the loan from Starbucks.
Partners of Starbucks should ask their store manager about applying for the Home Sweet loan programme. They can only make an enquiry if they have worked at the company for at least 12 months.