Expenditure at a leading children’s charity increased by £10.1m last year, its annual accounts reveal.
Action for Children’s total expenditure reached £149.4m in the year ending 31 March 2023, with investments in supporting children in care receiving the biggest boost, from up from £27.7m in 2022 to £36.9m in 2023.
The charity’s income rose to a total of £149.8m, an increase of £7.2m due in part to a rise of £4.5m in income from charitable activities.
The accounts reported a loss of £3.2m in its total funds, which fell to £80.8m, as well as a loss of £2.6m in its unrestricted funds, which totalled £62.3m.
But the charity said that despite being impacted by price increases in utility bills, an increase in salary costs and general inflationary increases that had not been budgeted for, it managed to offset the pressures by reducing non-pay expenditure, and benefitting from a surplus in operational activities and fundraising.
Sarika Patel, chair of the board, said: “It has been another testing 12 months, hitting our vulnerable families the hardest. Our determination is undiminished.
“Our loyal and dedicated staff, supported by our wonderful volunteers, are delivering our four strategic pillars; children in care, family support, disabled children and mental health and wellbeing.
“These services are needed more than ever, particularly as local authorities with tight budgets make difficult decisions on where to spend their limited resources.
“Our vision, mission and values inspire us to deliver for children and ensure we continue to be their support and champion their support.”
Action for Children named Paul Carberry as its permanent chief executive in December last year. Carberry, who has worked at the charity for three decades and took up his leadership role in March, also commented on the challenges of the past year in his introduction to the accounts.
He said: “Our progress over the last 12 months comes within a context of rising costs affecting everyone we work with, from local authorities to the people who so generously support our work.”
In May this year the charity was forced to close one of its children’s homes after an Ofsted report found it was “inadequate”, with “widespread failures that mean children and young people are not protected or their welfare is not promoted or safeguarded”.
Inspectors also raised concerns that injuries to children at the home “have not been recorded or reported appropriately”.
The charity apologised for these failings and admitted that services at the home had “not met our usual high standards”.
The home was reopened in July after Ofsted reported that “sufficient progress has been made that demonstrates that children are no longer at risk of harm”.