Disability charity Leonard Cheshire has reported its first financial surplus in six years but continues to make staff and service cuts as the Charity Commission investigates its governance.
Leonard Cheshire reported a surplus for the first time since 2017-18 as its expenditure fell by more than £10m to £150m in the year to March 2024, while its income dipped to £152m as legacy donations halved to £1.81m.
The charity made 310 redundancies and paid £1.46m in related costs (275 and £2.55m in 2022-23) while its average monthly headcount decreased by 4% to 3,019 full-time equivalent staff in 2023-24.
Leonard Cheshire spent over £6m less on its social care services (£147m) and more than £3m less on its international services (281,000), from which it exited in 2023-24.
As previously reported, the charity is now selling all its service provision in Wales, “transferring ownership to reputable providers”.
In 2024-25, the charity plans to “continue to build funds for ongoing operational reserves requirements, future modernisation investment needs and to set aside funds to replenish restricted reserves cash”.
It also plans to “implement targeted staff reductions in support functions, reducing costs and supporting operational surpluses in coming years,” the accounts read.
Chair: ‘Turnaround is far from complete’
The regulator opened a statutory inquiry into Leonard Cheshire in December 2022 after the disability charity’s trustees approached the regulator in April that year about the financial difficulties it faced.
While the probe continues, the accounts state that the charity is making progress on its three-year recovery plan, set in February 2022, including exiting from services “where quality improvements are unsustainable”.
Writing in an introduction to the accounts, chair Neil Goulden says “a key area of focus for the Charity Commission is whether historically restricted funds had been spent for other (general) purposes”.
“This concern relates to past actions and the current trustees have agreed a new policy for the recording and protection of restricted funds and are committed to replenishing restricted reserves in cash over the next three years,” his introduction reads.
“While our turnaround is far from complete, we have come a very long way from 2022 when the charity’s financial situation was particularly severe – a period of very stark choices.
“For the first time in many years, the charity has now made a small surplus. Although this includes funds received from the sale of property, improving our cash position was vital.”
