Over thirty organisations supporting UK communities hardest affected by the cost of living crisis have written to Chancellor Jeremy Hunt, urging him to provide immediate assistance ahead of the upcoming spring budget announcement. 

The letter, signed by organisations that support thousands of individuals and charities, warns of the devastation to communities if nonprofits are compelled to reduce services or cease operations.

Every region of the United Kingdom is affected by the cost of living crisis, and the need in communities continues to develop. Charities and nonprofit organisations play a vital role in assisting those who would otherwise go without. Recent research indicates that fifty per cent of charities are concerned about their ability to endure and continue providing services in the face of a triple threat posed by increasing demand, declining income, and rising operational costs.

In addition to declining revenue, many charitable organisations are also facing increasing energy costs.

The average cost of energy for charities has increased by 4.5 times since February 2021, while their revenue has remained relatively stable. In contrast to businesses, charities cannot pass on delivery costs to recipients of their services. To ensure that nonprofits can continue to provide vital community support, the organisations are requesting that the chancellor include the following measures in next week’s budget:

  • Targeted funding, such as grant financing and reform of proposed energy support programmes, to assist charities with energy costs.
  • Support for charitable organisations to securely reduce their energy consumption, including the release of social funds and grants for energy-saving upgrades.
  • Contracts with the government that reflect the true cost of delivery, including inflation adjustments and a long-term funding settlement for local and devolved governments.
  • Expansion of the current Energy Price Guarantee for households and collaboration with nonprofit organisations to develop long-term policy solutions, especially for households at the highest risk of fuel poverty.

Sarah Vibert, chief executive officer of NCVO, stated, “When a charity closes its doors, an entire community loses support. Even reducing services can negatively impact people’s livelihoods. In the upcoming budget, the chancellor must observe these warnings and provide urgent aid to the nonprofit sector. Without it, many of the individuals hardest impacted by the cost of living crisis will lose crucial support.”

The cost of living in the UK has affected more than sixteen million people and is expected to deteriorate in the coming months. 

The charity sector plays an essential role assisting those in need, and the proposed measures enumerated in the letter to the chancellor would go a long way towards ensuring that nonprofits continue to serve their communities.

In conclusion, the crisis in the cost of living in the United Kingdom is affecting communities across the country, and the nonprofit sector is essential for assisting those in need. 

The organisations urge Chancellor Jeremy Hunt to take action and provide the necessary support and funding to ensure that charities and nonprofits can continue to serve their respective communities.