Written evidence submitted by Age UK West Cumbria Ltd

 

Third sector and charity case study evidence submitted to the Digital, Culture, Media and Sport Parliamentary Select Committee – April 2020

 

AGE UK WEST CUMBRIA LIMITED

Type of organisation/governance:

Limited by guarantee, Co Reg – 06047495, Charity Com – 1122049. It is one of 140 brand partners of Age UK, working across the United Kingdom.

Purpose of organisation:

To promote the relief of older people in Allerdale and Copeland

Geographic area covered:

Allerdale & Copeland in West Cumbria

Who am I?

 

I’m CEO and have been involved with this Charity at the coalface since June 2018. I have 30 years’ experience as a restructuring & turnaround specialist and I’m a former licensed insolvency practitioner. My focus has been reshaping the charity to be sustainable & relevant for the future.

 

In my line of work the most precious resource is time, time to restructure or turn a business. Time is also limited for our vulnerable older people in Allerdale & Copeland.

 

The charity is a classic example of one that has been over reliant on its reserves in the last 3 years while its income levels have continued to drop from an historical high of £2.2 million. Headcount has also dropped from 118 to 52 in 2 years, BUT the Covid-19 crisis that has come from the left field may tip over the charity. We are fighting hard to avoid this outcome.

 

Work being done during Covid19:

 

  1. Information & Advice
  2. Food Parcels
  3. Home from Hospital (To increase exit flow from the NHS & hence capacity)
  4. 2 additional Covid-19 helplines
  5. Prescribed Equipment for the NHS occupational therapists
  6. Covid-19 Emergency Appeal - £100,000
  7. Members of Copeland Local Resilience Group
  8. Members of Allerdale Local Resilience Group
  9. Working with local funders & Cumbria Voluntary Services (CVS)
  10. Sign posting to other charities & organisations
  11. Regular service & information updates via our websites, facebook & twitter feeds

 

Usual income:              

As at YE 31/03/2020 (Unaudited) - £1.1 million

 

Reserves:

As at YE 31/03/2020 (Unaudited) - £0.7 million (90% Bricks & Mortar)

Challenge due to Covid19: Shops closed/loss of volunteers/no fundraising etc.

 

  1. All face to face contact suspended
  2. 5 Retail shops suspended – Workington, Cockermouth, Cleator Moor, Egremont, Millom
  3. Retail online shop suspended
  4. 3 Resource centres suspended – Whitehaven, Cockermouth, Egremont
  5. Foot care suspended
  6. Handyperson services suspended
  7. Day activities suspended
  8. All clubs & groups suspended
  9. All face 2 face contact suspended on two projects including Joining Forces and Community Connections
  10. Loss of 70% of our volunteers who are now self-isolating
  11. Loss of 90% of our income over night
  12. Skeleton staff headed by trustees & CEO, managed via remote audio/visual platforms
  13. Restricted fundraising activities

 

Predicted loss:

Predicted loss of income £685,000

Who this affects:

 

  1. Older people in Allerdale & Copeland
  2. 80% of our staff are furloughed
  3. Jeopardises the future sustainability of the charity
  4. Inability to deliver vital services when demand is high re Isolation / loneliness / mental Health
  5. Loss of face to face wellbeing assessments

 

Opportunities to make good:

 

  1. Time is short
  2. Covid-19 will tip many charities over the edge - maybe this charity
  3. Sustainable funding of social care and especially the vulnerable groups like older people

 

What would help?

 

  1. Sustainable funding for core costs for funding grants & contracts
  2. Allowing furloughed staff to volunteer for the same charity
  3. Forcing charities to pool resources & avoid duplication
  4. More direct leadership of the 3rd sector
  5. Professionalise & promote the merger of charities
  6. A directive from government for insurance companies to fast track business interruption claims.

 

 

Principal Issues to address:

 

The fundamental issue is not about saving charities or charity jobs but the beneficiaries that rely on the safety net that charities provide.

 

Firstly, the immediate crisis for all charities during and post Covid-19, there will be significant numbers of insolvencies, most charities are small with few reserves and the trustees should not risk their own position and they will follow legal/regulatory advice. Ultimately these failures of charitable services will fall on local government, social services, the NHS and central government services. It will be a false economy to under fund Covid-19 support for Charities.

 

Secondly, the bigger and uglier issue is the sustainable funding of social care – there is plenty written on the subject including parliamentary reports.

 

However, the arguments are not one sided, the third sector needs to get its act together and build sustainable trust, with local & central government, the NHS and funders.

 

Should this information be anonymised?

No

Is someone prepared to speak to press/government about this?

Name: David Hole - BSc (Hons), MBA, FIPA, FABRP, FEACTP

Position: CEO