Briefing to MPs on the impact of a second lockdown on the voluntary sector
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As the country enters a second lockdown, charities across the country are facing increasing pressures of higher demand with dwindling resources.
While the government’s £750m support package for the sector was an important start, and charities have also benefited from additional government support schemes, the capacity of charities to act in a second lockdown and contribute towards our eventual recovery has been significantly reduced.
The Job Retention Scheme allowed charities a degree of financial stability, but for some charities on the front line, it has meant having to choose between securing their own financial stability or stepping up their frontline response.
Impact of covid-19 on the charity sector
Research by Pro Bono Economics in June, estimated a £10bn funding gap across the sector over the next six months. The combination of increased demand and lost income has now left charities less able to fulfil their charitable purposes.
New research published only last week shows that there is likely to be a significant decrease in both the number of charities and the capacity of charities that remain, with 10% of charities saying they are likely to close, and 80% predicting a negative impact on delivering their planned objectives.
Additional findings include:
- Finance: 2 in 5 (39%) voluntary organisations report that their financial position had deteriorated in the last month.
- Demand for services: More than half (56%) of respondents expect demand for their services to increase over the next month.
- Safety: 60% of organisations said that covid-19 related safety measures have increased their operating costs.
Consequences of inaction across the voluntary sector
- Two-thirds of hospices have started planning for redundancies, after supporting three times the number people in April as the equivalent period in 2019.
- Due to covid-19, medical research charities expect to cut £310m from their research funding over the next year.
- Research in September from the Trussell Trust forecast a 61% increase in food parcels needed across its UK network between October and December. Previous government support has allowed food charities to reach nearly 600,000 families and individuals at risk of hunger.
- Valued leisure and culture venues and organisations are already struggling due to increased costs and reduced footfall, following the first lockdown. Many will not survive a second lockdown without immediate financial assistance.
- From sport clubs, community centres, youth clubs through to mental health support, domestic violence shelters, and hospices - we’re in very real danger of losing many of the things that make life worth living and that provide support to people in times of need
Given the immediate challenges presented by a new lockdown to the ability of charities to provide the services we need to get through the coming weeks, we would be very grateful if you were able to raise the need for additional support for charitable activity during Wednesday’s debate.
The prime minister committed to doing 'much more over the winter to support the voluntary sector', please tell him about the important work done by charities in your constituency and ask him and the chancellor to bring forward a package of support during the spending review.
Please contact Chris Walker and Roshni Mistry if you would like further briefing on this issue, or to arrange a conversation with NCVO’s chief executive, Karl Wilding.
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