£750m bailout for charities is ‘just a sticking plaster’ as Sunak warns of significant hardship
Leading UK charities have called a £750 million package of support to help them survive the coronavirus crisis a “drop in the ocean”, warning that they face a £4 billion shortfall over the next three months if the lockdown continues.
Chancellor Rishi Sunak said the package of cash grants would ensure that organisations supporting the vulnerable through the outbreak can continue their work.
It came as the Chancellor put the public on notice that pandemic would have “a significant impact on our economy – and not in an abstract way”.
“I can’t stand here and say there isn’t going to be hardship ahead: there is,” Mr Sunak said, adding that while new claims for benefits were stabilising, they remained four or five times the average.
The first monthly estimates of UK GDP since the start of the lockdown are due to be published by the Office for National Statistics this morning.
Reports suggest that more a than a third of companies could put between 75 and 100 per cent of their staff into the government’s furlough scheme at a cost of up to £40bn, but Mr Sunak said he was not putting a ceiling on wage subsidies to support workers through the crisis.
With most forms of public fundraising impossible under lockdown, some of the UK’S biggest charities have warned they risk collapse, with St John’s Ambulance saying they will run out of money by the summer.
Services like domestic abuse shelters, hospices and Citizens’ Advice will receive cash grants to ensure they can meet increased demand as a result of the virus.
Government departments will hand out £360m to charities directly aiding the coronavirus response, while smaller charities will benefit from funds worth £370m, including through a grant to the National Lottery Community Fund.
The devolved administrations will get £60m through the Barnett Formula, including £30m for the Scottish Government to support organisations in Scotland.
“At this time, when many are hurting and tired and confined, we need the gentleness of charities in our lives,” Mr Sunak said.
“It gives us hope, it makes us stronger and it reminds us we depend on each other.”
Ahead of the televised “Big Night In” fundraiser on 23 April organised by the BBC, Children in Need and Comic Relief, the Chancellor also pledged to match the public’s donations, guaranteeing a minimum of £20m for the National Emergencies Trust.
But leading charities said more support was needed. Javed Khan, the chief executive of children’s charity Barnardo’s, said the package was “a sticking plaster for a critical wound”.
“Demand for our services is already skyrocketing with more children experiencing domestic abuse, and at greater risk of sexual abuse at home and online,” Mr Khan said.
“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.” And Macmillan Cancer Support chief executive Lynda Thomas said the package “doesn’t go far enough to provide the relief needed by the charity sector”.
Labour’s shadow Chancellor Anneliese Dodds said the package “falls far short of filling the financial black hole many organisations are facing.
“Ministers should continue to look at what additional measures can be made available.”
Liberal Democrat interim leader Sir Ed Davey said: “The £750m will undoubtedly help, but ministers must be honest and admit it won’t come close to making up for the £4.3bn of income charities will have lost in just 12 weeks.”