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The State of the Secto...

The State of the Sector report Main Image

The State of the Sector report

Tue 20 Feb 2024

New research suggests charities subsidise public services to the tune of £2.4bn a year.

The State of the Sector report, commissioned by New Philanthropy Capital (NPC), a charity think tank and consultancy, found that essential public services are at risk due to underfunded contracts and suggests charities subsidise state services by £2.4bn a year.

62% of charity leaders said their organisation uses money from other sources, such as fundraising, to deliver public services for which they have been contracted and that only a quarter of contracts held by charities have been uplifted in line with inflation.

Commenting on the report, Sarah Russell, Headway’s Senior Policy and Public Affairs manager, said:

“This report supports our assertion that the services provided by Headway charities prop up statutory services.
“A number of Headway charities are experiencing financial crisis due to inflationary pressures and cost-of-living challenges.
“This, alongside a decline in income from local authority commissioning, means some may never recover.”

Headway has repeatedly called on the Chancellor to Budget for Brain Injury and allocate vital funds to support the provision of essential community reablement services for those living with the effects of acquired brain injury.

Sarah added:

“We will be writing to the Chancellor again ahead of his Spring Budget in March imploring him to support these services. After all, if these services were no longer available, individuals would present for more costly state-funded support from the health and social care system.
“The current situation is unsustainable and we hope that, at the third time of asking, the Chancellor will heed our calls for intervention.
“Please look out for our campaign ahead of the Spring Budget on March the 6th and share our videos – your messages of support mean everything!”
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Headway - the brain injury association is registered with the Charity Commission for England and Wales (Charity no. 1025852) and the Office of the Scottish Regulator (Charity no. SC 039992). Headway is a company limited by guarantee, registered in England no. 2346893.

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