Charities are wondering how much more demand they can absorb before the safety net fails, a sector leader said following today’s Autumn Statement.
Another leading figure said charities must not be “taken for granted”, amid fears they are “on the verge of buckling” as public services funding falls away.
Their comments came as umbrella bodies and charities gave a mixed reaction to Chancellor Jeremy Hunt’s economic plan, which included:
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Frozen tax thresholds, meaning everybody will pay more as their wages increase
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The top rate of tax threshold being lowered from £150,000 to £125,140
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Help with energy bills scaled back from April, but extra payments for pensioners and those on benefits
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Inflation-linked increases in benefits from 1 April 2023
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An expanded windfall tax for energy firms
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An increased national living wage from April, up to £10.42 per hour from £9.50.
Jane Ide, chief executive of the charity leaders body Acevo, said: “There is little in today’s statement that will make a real difference to hundreds and thousands of households who are already turning to food banks and other charities in order to survive day to day.”
She said the expectation of efficiency savings and no real-terms funding increases for local authorities meant “continued pressure on civic services”.
Ide added: “Despite the chancellor’s aims to showcase British compassion, more people will fall through the cracks and more people will turn to charities for the support they desperately need.
“Charities will continue to try to deliver that desperately needed support. But they will be wondering how much more demand they can absorb, and what happens when even the safety net our sector provides can no longer cope.”
Sarah Vibert, chief executive of the National Council for Voluntary Organisations, said a failure to address the root causes of food and fuel poverty, combined with a commitment to further squeeze public services, would have a “devastating impact on people, communities and the voluntary sector”.
She said: “Although uprating some benefits in line with inflation next spring will be a lifeline for many people, it will not come soon enough to prevent people facing poverty this winter. And who will be expected to pick up the slack? Charities and volunteers.”
She said some charities were asking themselves whether they were “letting the government off the hook” by “plugging the gaps in underfunded public services”.
She added: “Clearly charities are not going to walk away from communities at a time of need. But they cannot be taken for granted. NCVO members are making really tough decisions about what they can and cannot do.
“Many were forced to spend reserves to survive the pandemic and are now on the verge of buckling under the compounding pressures of increased demand, skyrocketing operational costs, eroding income and challenges recruiting staff and volunteers.
“Cutting funding for public services will only exacerbate these challenges. Charities are vital partners in the design and delivery of public services, but charitable income cannot replace government funding.”
Caron Bradshaw, chief executive of the Charity Finance Group, welcomed benefits rising in line with inflation and Hunt’s increased clarity about the energy support scheme.
But she said: “Overall, today’s Autumn Statement has left us with an overwhelming sense that we have been here before.
“The Chancellor has ticked some boxes and, whilst we remain hopeful, it is by no means certain that his plan for stability and growth will work.
“Once again, our sector and the people we serve are bracing for a very tough and challenging time ahead.”
Neil Heslop, chief executive of the Charities Aid Foundation, said: “It is disappointing that the chancellor did not mention any support for charities.
“These organisations are under severe financial strain, facing soaring energy bills, declining income as people cut back, but significantly rising demand for their services.
“Charities must be at the centre of any continued energy support from April and need to know where they stand.”
Mark Russell, chief executive of the Children’s Society, said: “I feel incredible relief that the government has acted on our campaign to stop pushing hundreds of thousands more children into poverty by deciding to keep benefits in line with inflation.
“One-off payments to support people on benefits with energy bills and the extension of the Household Support Fund are welcome additions, but they are still temporary sticking plasters over much bigger issues.
“We need long-term solutions such as increasing child benefit payments, feeding more children through free school meals, and long-term funding for local crisis support.”