Charities to receive government support with energy bills

Charity

Charities will be included in plans to protect businesses from soaring fuel costs for the next six months, the government has confirmed.

Prime Minister Liz Truss told the House of Commons this morning that voluntary organisations would qualify for a support package that would cap the annual energy bill for a household using an average amount of gas and electricity at £2,500 from October.

The Scottish Council for Voluntary Organisations said the temporary measures would help but did not give charities enough certainty ahead of the winter.

Truss told MPs that prices would be subsidised for households until 2024 and said: “We will also support all businesses, charities and public sector organisations with their energy costs this winter, offering the equivalent guarantee for six months.

“After those six months we will provide further support to vulnerable sectors such as hospitality, including our local pubs.”

She said the government would review how the scheme worked before deciding how to target further help and “make sure those most in need get support”.

That process will be led by the Department for Business, Enterprise and Industrial Strategy.

A spokesman for the Department for Digital, Culture, Media and Sport, which oversees charity policy, said the department would be “plugged into” the review.

Anna Fowlie, chief executive of the SCVO, said: “Today’s announcement of a six-month energy price guarantee is a step forward for voluntary organisations whose energy bills have rocketed in recent months. 

“Unfortunately, the length of the freeze fails to give organisations the certainty they need, and nor will it be enough for many that are still struggling to pay these inflated bills.

“The cost-of-living crisis goes well beyond energy bills, with rising costs eroding available funding to deliver vital programmes and services. 

“Thousands of voluntary organisations will need targeted support to cope with spiralling costs, particularly those opening their doors to provide food, warmth and other lifeline support to people in need. There was no news of what additional support will be available.”

Tony Armstrong, chief executive of Locality, which supports community organisations, said: “Though it is welcome that energy bills will now not rise to predicted levels this winter, they have already gone up a lot, and along with higher staffing, food and fuel bills, many organisations have already seen their overall costs doubling or trebling. 

“This is threatening the survival of essential local services, and some are already being forced to close their doors.”

Sarah Vibert, chief executive of the National Council for Voluntary Organisations, said: “We are particularly glad to see the clear inclusion of charities and businesses in the energy price guarantee. 

“We urge the government to quickly publish details about how the price guarantee will operate.”

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