More than 30 civil society organisations have called on the Chancellor to act now with targeted support to help communities during the cost-of-living crisis.
Ahead of next week’s Spring budget, sector infrastructure bodies and charities have warned Jeremy Hunt of the devastating impact if charities are forced to shut down or limit operations due to the cost-of-living crisis.
The letter argues that the voluntary, community and social enterprise sector cannot respond to this crisis without support, highlighting that many charities are themselves at crisis point.
It notes that average energy prices available for charities are still 4.5 times higher than February 2021, while charities’ incomes have not seen a like-for-like increase.
The letter reads: “Charities are essential for a fair society, economic growth and an effective public services system, but they are facing a triple threat of rising demand, falling income and rising operational costs, particularly energy bills. Many are struggling to retain and recruit both volunteers and paid workers.
“More than half of charities worry about struggling to survive. The challenges are particularly acute for service delivery organisations, including those providing care, support and accommodation.”
‘We need the Chancellor to act on these warnings’
Hunt is being called on to announce a number of measures, including targeted funding for charities to support with energy costs, such as grant funding and reform of proposed energy support schemes.
The group is also calling for an uplift in government contracts so they cover the true cost of delivery, including raising contract payments in line with inflation and a longer term funding settlement for local and devolved governments.
Another key ask is for an extension of the current Energy Price Guarantee for households and a commitment to work with charities to develop long term policy solutions.
Sarah Vibert, chief executive of NCVO and signatory of the letter, said volunteers and charities are on the frontline of the cost-of-living crisis.
She added: “The risk here is real. For every charity that shuts down, a whole community of people have the rug pulled out from under them. Even scaling back services can have a detrimental effect on people’s lives.
“We need the Chancellor to act on these warnings and provide urgent help for the voluntary sector in next week’s budget. Without it, many of the people hardest hit by the cost-of-living crisis face losing vital support.”
Other signatories include Katie Docherty, chief executive of the Chartered Institute of Fundraising, Paul Streets, chief executive of Lloyds Bank Foundation for England & Wales, Ndidi Okezie, chief executive of UK Youth and Caron Bradshaw, chief executive of Charity Finance Group.
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