National family support charity Family Action has bought couples counselling charity Relate, which had entered administration at the end of last after experiencing financial problems following the loss of government contract funding.

The deal with Family Action secures the future of 185 jobs at Relate. Staff transferred to the family support charity at the start of this month.

The move has been announced by FRP Advisory partners Philip Reynolds and Ian Corfield, who were appointed joint administrators for Relate at the end of November 2024.

“Following an accelerated marketing process, a buyer – national charity Family Action – has now been found, securing the jobs of 185 Relate employees who will transfer into Family Action on 1st January 2025,” they confirmed.

Reynolds added: “Relate is a lifeline for families across the country struggling with a range of domestic issues. We’re pleased that an unfortunate period of financial uncertainty hasn’t put a stop to that vital work.

“Family Action’s track record of supporting families through change, challenge and crisis dovetails well with Relate’s mission and we’re optimistic that this deal gives the charity the foundation it needs to return to a stable footing.”

Following the deal the couples counselling charity will continue to trade under the Relate brand.

The federated network of local counselling services it supports will continue as the Relate Federation and will remain separate and financially independent from Family Action.

Family Action chief executive David Holmes said Relate is “excited about the obvious alignment between Family Action, the charity for families, and Relate, the charity for relationships, and see excellent opportunities for mutually beneficial development for our combined organisations in the future”.

According to the charities register Relate’s income for the year ending March 2023 was £7.58m and it spent £7.3m.

Its annual report for this financial year details that the charity’s contract with the Department for Work and Pensions to deliver a programme to reduce parent conflict in eight areas in the North East of England had come to an end on July 2022.

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