NEW GOVERNMENT INITIATIVES

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Chancellor Rishi Sunak announced a package of measures on 8 April 2021 aimed at assisting frontline charities in overcoming the challenges that Covid-19 poses.

Many of these organisations have seen a significant increase in demand for their services at a time when fundraising is virtually non-existent.

Charity sector groups have predicted that charities will lose a minimum of £4.3 billion over the next 12 weeks due to the loss of charity stores and fundraising, and while furloughing is an option for charities, it is often impractical when so many vulnerable people are in need of assistance.These steps had been promised for nearly two weeks, and the Chancellor was under increasing pressure to help those who are on the front lines of responding to our society’s most vulnerable – but are they sufficient? The devil, as always, will be in the details (which we don’t have yet), but the government’s initial response is: 1) £360 million in direct funding from government departments to charities that provide critical services and assist the vulnerable.Up to £200 million will go to hospices, with the rest being distributed among various organisations, including:

  • St John’s Ambulance to assist the NHS; 
  • victims charities, especially domestic abuse charities, to help with rising demand; 
  •  vulnerable children charities to continue to provide services on behalf of local governments.
  • Citizens Advice is planning to increase the number of people who provide advice.

It appears that government departments will identify organisations eligible for this financing at some level, rather than through an application process. The initial sums are expected to be delivered “in the next few weeks,” according to the guideline. 2) £370 million through the National Lottery Community Fund for small and medium-sized charities (no definition given), intended towards organisations at the core of local communities such as food banks and those providing crucial medicines and financial advice.

The information offered on this is limited, and there are hints that it will be a grants procedure, but we eagerly await the specifics. 3) Provide a minimum of £20 million in matching funds for whatever the public raises during the BBC’s Big Night In.While money raised on the night will be split between Comic Relief and Children in Need, the government portion appears to be administered through the National Emergency Fund, which is already running its own coronavirus appeal. We are living in unusual circumstances, and these steps, although necessary, are also unprecedented.I have no doubt that they will provide a lifeline to some of our society’s most vulnerable organisations, and I, like many others, hope that when the details are released, they will be simple and easy to implement.When presenting these measures, Rishi Sunak admitted that they would not be enough to allow every charity to continue operating, and he is correct – while the amount promised is a significant step forward for many frontline charities, it is simply too little, too late for others, with many smaller charities unable to reach the point where these grants are paid without having to drastically reduce their operations.“Today’s announcement is an important starting move, but it will not be enough to prevent decent organisations across the country from closing their doors,” said Karl Wilding, Chief Executive of NCVO. Many of those who survive will look very different in a few months, with much decreased capacity to give the support that individuals require. In times of disaster, charities want and need to be able to devote all of their resources to helping those who are most in need. They won’t be able to achieve that if they have to stop working or shut down completely. We understand that the government does not want to see this, and we will continue to advocate for the funding needed to allow charities to continue serving the public. As the crisis persists, we would appreciate a commitment from the government to reassess the level of this assistance.”The full government press release on the measures is available here: https://www.gov.uk/government/news/chancellor-sets-out-extra-750-million-coronavirus-funding-for-frontline-charities?utm_sq=gdmx0tcnaw&utm_source=twitter&utm_medium=social&utm_campaign=officialcause4&utm_content=charitynewsanalysis and we will provide a further update as soon as the details become available.

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