Starbucks UK has just announced that it will begin offering its employees housing loans in order to combat the fast-rising cost of living that is sweeping through many of the country's major cities.
According to their official press release, workers who have been with the company for more than a year can apply for an interest-free loan equivalent to a month's salary to use as collateral on a house.
Starbucks EMEA president Kris Engskov told CNBC that this new program allows Starbucks partners to live close to their place of work:
"We want our partners to be able to live as close to work as possible. It's an issue with our proximity to cities and one of the problems with having much of our business in areas like Central London where it's too expensive to live in the city center," he said.
There are over 4,500 Starbucks partners under the age of 25 so this new scheme should greatly benefit those struggling to make rent. In the press release Campbell Robb, Chief Executive of Shelter, said:
"There are now 11 million private renters in England, and as housing costs keep rising, more and more people are struggling to scrape together the deposit needed to rent a home, After successfully launching the programme with our own staff in 2013, it's great to see that Starbucks is following suit and helping their staff to move into a home without worrying about how they'll cover the cost. This will no doubt encourage other UK employers to follow their example and give renters the helping hand they need."
In addition to this, Starbucks UK is planning to increase its minimum wage to around $11 an hour, which will put it in line with the country's voluntary living wage guidelines.
