Relate - Case Update

Relationship support charity Relate has had certain of its services acquired by Family Action, saving 185 jobs.

Relate was founded in 1938 and grew to support a network of charities across the UK. The charity entered administration on 26 November after losing its contract with the Department for Work and Pensions, its main partner for eight local authority areas in the North East of England, in July 2022. Its last published accounts for the year 2022-23 showed a £690,000 loss on income from its services of £6.7 million. One third of the charity’s workforce — approximately 80 employees, including 40 therapists — were made redundant on the administration.

Joint administrators Philip Reynolds and Ian Corfield of FRP Advisory conducted an accelerated marketing process, resulting in the sale of Relate’s counselling and central services to Family Action. 185 employees transferred to Family Action on 1 January 2025.

Relate will continue to trade under its own branding and the federated network of local counselling services it supports – the Relate Federation – remains separate and financially independent from the entity acquired by Family Action.