Organisations supporting communities hardest hit by the cost of living crisis have united ahead of next week’s spring budget to call on the chancellor to provide urgent support.
Over 30 organisations supporting thousands of people and charities across the UK have written to Jeremy Hunt urging him to act. The letter warns of the devastating impact on communities if charities are forced to scale back services or stop operating.
The organisations – which include sector infrastructure bodies and well-known charities – argue that the voluntary, community and social enterprise sectors can’t respond to this crisis without support.
The signatories highlight that many charities are themselves at crisis point. Many are facing a triple threat of rising demand, falling income and rising operational costs. Latest research shows that half of charities are worried about their survival and ability to deliver services due to the current crisis.
Record energy costs are also a key concern for a range of charities. Average energy prices for charities are still four and a half times higher than in February 2021. Charities’ incomes have not seen a like-for-like increase. Unlike businesses, charities are unable to pass on the cost of delivery to the people accessing their services.
To ensure charities can continue providing vital support to communities, the organisations are calling on the chancellor to announce the following measures in next week’s budget.
Dear Chancellor,
We are writing to you ahead of the budget announcement next week to urge you to provide critical ongoing support to the voluntary, community and social enterprise sector in the face of the ongoing cost of living crisis. Together, our organisations support hundreds of thousands of people and tens of thousands of charities across the UK.
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. The scaling back or closure of organisations will have a direct impact on the lives of people who already have the odds stacked against them. Communities can’t afford to lose charities that provide local employment, pride in place and vital community connection.
The Energy Bill Relief Scheme has made a positive difference to some organisations since it was introduced. But many have not experienced the benefit because wholesale prices are now below the discounted EBRS price yet still unsustainably high. Prices available to charities are still 4.5 times as high as they were in February 2021, and charities’ incomes have not seen a corresponding increase. The Energy Bill Discount Scheme and Energy and Trade Intensive Industries Scheme will not be enough to prevent the scaling back of vital services or organisations, from refuges, care homes, hospices, and homelessness services, to youth and community centres, village halls, leisure centres, and arts and heritage organisations.
Charities cannot respond to this crisis without support. They report being unable to meet rising demand for help as more people struggle with the impact of high costs. Organisations are unable to pass on increased costs because people cannot afford to pay. Many cannot reduce their energy use because it would jeopardise the wellbeing and safety of the people they support. We therefore urge you to include in the spring budget:
The voluntary sector stands ready to work with government to ensure that both communities and charities can access affordable energy. We trust you will consider these solutions to ensure the voluntary sector can weather this difficult period and continue to support communities.
Yours sincerely,
Sarah Vibert, Chief Executive, NCVO