Many local charities will close when the government’s energy bill support reduces after March, sector representatives have warned.
Local charity membership bodies criticised the Treasury’s announcement this week that all charities will continue to receive a reduced level of government support in paying for their utilities after March through the Energy Bills Discount Scheme (EBDS).
They also condemned the government’s omission of local community service providers from its list of “energy and trade intensive industries” (ETII) that will qualify for a higher level of financial support.
Charities that run libraries, museums, historical sites, zoos and nature reserves may be eligible for the ETII scheme, but sector bodies including NCVO have called for more voluntary organisations to be included.
In its guidance for the ETII scheme, the Treasury says it will publish further information by the end of March, including “guidance for firms that believe their operations are not correctly classified by Standard Industry Classification code”.
A government spokesperson confirmed to Civil Society News that these firms could include charities.
Locality: ‘Local charities will see 43% rise in bills post-March’
Tony Armstrong, chief executive of community-led organisations network Locality, said the reduction in support would cause community-led organisations to reduce their services or shut down altogether.
“We are hugely concerned about the government’s failure to provide adequate energy relief for local charities and social enterprises in the Energy Bill Discount Scheme, he said.
“Local community organisations are currently providing vital emergency services to people across the country such as warm hubs and food banks as well as their usual range of activities such as health and well-being services, nurseries and community facilities.
“To exclude these organisations from the list of priority sectors will mean services are closed and people are put at risk.”
He said the post-March changes to government subsidy would lead local organisations’ energy bills increasing by more than 43%.
“Many of our members will have to restrict access to services, close their doors and turn off the heating, and in some cases close down altogether.”
He concluded by saying the lack of support would significantly worsen the cost-of-living crisis and make the path to recovery longer and more difficult.
NAVCA: ‘The safety net for communities is at risk’
The National Association for Voluntary and Community Action (NAVCA) said that voluntary, community and social enterprises (VCSE) need more targeted support than that which the government has outlined.
Chief executive Maddy Desforges called on the government to meet sector representatives to discuss this issue.
She said: “Whilst this assistance is welcome, particularly with contracts signed when prices were much higher than today, more targeted help is needed to support VCSE organisations who are already struggling to pay high energy costs, even with existing support.
“The safety net for communities in the cost-of-living crisis provided by VCSE organisations is at risk if a solution is not found quickly. VCSE organisations must have a sustainable future in order to meet the increasing demand of those most in need.
“With partners, we call on government to meet urgently with VCSE sector representatives and energy companies to work together towards a sustainable resolution for current as well as future energy costs.”
Community Matters: Warm bank providers should get more support
John Wilson, project manager at Community Matters (Yorkshire), said that while any subsidy is welcome, the new government schemes will fail to support all organisations.
He said community organisations that are being asked to operate as warm hubs in particular should be granted extra support.
“This is particularly an issue for organisations running community buildings most of which have not seen a return to pre-pandemic levels of use and income,” he said.
“The increases in utility costs will significantly impact those organisations - many of which are being asked to operate warm hubs.
“Community Matters was hoping to see some level of support for community buildings to transition to more micro-generation or use of green energy which might provide a more long-term solution to some of these increases.”
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