Havering Council is exploring the possibility of establishing an in-house agency to recruit local residents for council roles, a move that could potentially reduce its reliance on external agency workers and associated costs.
The proposal was discussed at a meeting of the Overview & Scrutiny Board on Tuesday, March 17, 2026. The board received an update on the council's corporate HR metrics, which included a significant reduction in the spend on agency workers. For the last three months of 2025, the council saw a 22.7% decrease in agency worker expenditure compared to the same period in the previous year.
While the primary reason for engaging agency staff remains project or additional work, the board noted an increase in senior agency workers earning over £75,000 and those with over two years' tenure. The council currently has 67 contingent workers above the £75,000 threshold, with roles including educational psychologists
and panel chair panels
. The reasons for their extended tenure are not fully detailed, but the report notes that the calculation method may not accurately reflect individuals working sporadically. For instance, educational psychologists or chair panels might work one day every couple of weeks
. The council is working to revise how these figures are reported for greater accuracy. The number of contingent workers with over two years' tenure has increased to 114. Some of these are pools of individuals held for short-term sickness cover, which is financially beneficial for the council. The council is undertaking a review of this data for more granular reporting.
This prompted discussions about converting these roles to permanent positions and investigating alternative employment models. However, converting senior agency roles to permanent positions can be complex due to cost considerations. In some circumstances, it may be more expensive than engaging agency workers, particularly when factoring in public sector pensions. The council aims to prioritise which roles to convert and will develop a risk log for this process.
The idea of an in-house agency, similar to a model used by Haringey Council, was raised as a potential solution. This approach would focus on recruiting local residents for various roles, with the aim of reducing agency bills and potentially creating employment opportunities within the borough. The council is also exploring strategies to attract and retain local talent, including focusing on individuals furthest from the labour market through the social value elements of the ADECO contract. Notably, 64 out of the 67 senior agency workers earning over £75,000 reside outside of Havering, highlighting a concern about attracting local senior talent. The council is investigating why certain roles are difficult to fill, considering factors such as salary, location, hours, and job descriptions.
Officers indicated that while the council is committed to reducing its reliance on agency staff, aiming for 12% or under within 12 months, a complete elimination is unlikely due to the need for flexibility and cover for long-term sickness absence and specific projects.
For more details on HR metrics, refer to the Report - HR Metrics. The Public reports pack 17th-Mar-2026 19.00 Overview Scrutiny Board provides further context on the meeting discussions.