Charities have described the government’s £750 million coronavirus bailout as a “sticking plaster”.
While voluntary organisations broadly welcomed the package of funding, announced by Chancellor Rishi Sunak – many fear it won’t be enough to keep them afloat.
Charity bosses warned last week that the sector faced more than £4 billion of losses over the next 12 weeks.
Announcing the fund, Mr Sunak admitted: “The truth is we will not be able to match every pound of funding they would have received this year.”
Some £360 million will be directly allocated by Government departments to charities providing key services and supporting vulnerable people during the crisis – including hospices taking pressure off the NHS.
A further £370 million for small and medium-sized charities, including through a grant to the National Lottery Community Fund for those in England, will support organisations “at the heart of local communities which are making a big difference during the outbreak, including those delivering food, essential medicines and providing financial advice.”
Karl Wilding, chief executive of the National Council for Voluntary Organisations (NCVO), which represents charities, said: “With charity shops shut and fundraising events cancelled, we estimate charities stand to lose around £4bn in 12 weeks as a result of the crisis. We have been pushing for government support because we know how many people and communities rely on the services charities provide, many of which are now at risk.”
He added: “Today’s announcement is an important first step, though it will not be enough to prevent good charities around the country from closing their doors. Even many that survive will look very different in a few months’ time, with a severely reduced capacity to provide the support that people rely on.
“At a time of crisis, charities want and need to be able to give their all to supporting people who need it most. They cannot do that if they have to suspend their work or close altogether. We know this is not something that the government wishes to see any more than we do, so we will continue to push for the support needed so that charities can keep serving the public. We would welcome a commitment from the government to review the level of this support as the crisis continues.”
Barnardo’s Chief Executive Javed Khan welcomed the funding – but said it was a “sticking plaster” which doesn’t go far enough.
He said: “Demand for our services is already skyrocketing with more children experiencing domestic abuse, and at greater risk of sexual abuse at home and online. Mental health is moving from crisis to catastrophe and more families are falling into poverty
“Financially, the worst is yet to come as the economic downturn continues and I urge ministers to keep the package under review.
“Now more than ever we need the great British public to support charities across the sector – responding to emergency appeals like Barnardo’s Coronavirus Crisis appeal to ensure we can continue to support the most vulnerable in their hour of need.”
The Children’s Society has had to close all of its 106 charity shops – and is losing an estimated £1m in income every month.
Chief exec Mark Russell said the package was a step in the right direction.
But he said: “On the face of it the cash support announced is a drop in the ocean compared to what charities desperately need to continue supporting some of the country’s most vulnerable people in these worrying times.”
He added: ““Charities like ours face a perfect storm of rising demand at the same time as income has plummeted amid retail shop closures and cancelled fundraising events.
“Right now, many disadvantaged children are at increased risk, be it of falling prey to horrific sexual and criminal exploitation or suffering mental health problems. Yet they are cut off from vital support networks like school and youth clubs. They need us now more than ever.
“The Chancellor acknowledged that charities supporting vulnerable people cannot simply stop their work, so it was disappointing there was no announcement that furloughed frontline staff will be allowed to continue to volunteer. We need to step up our response and mobilise, not mothball our fantastic staff right now.
“We would implore the Government to do more before it is too late.”
Nick Moberly, chief exec of the MS Society called for more detail on how the cash would be distributed.
He said: “We urgently need detail on whether charities who support disabled people are eligible for support – and how the money will be allocated.
“More than 130,000 people live with MS in the UK, and they are relying on us now more than ever. Demand for our services has soared during this pandemic and we’re doing all we can to be there for everyone in the community, many of whom are extremely vulnerable.
“It’s vitally important people with MS are protected during this crisis and we’ll be seeking reassurance that charities like ours won’t be forgotten.”
