New report reveals UK charity resources may be strained, due to public sector cuts

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21st July 2017 16:11 - Voluntary

New report reveals UK charity resources may be strained, due to public sector cuts: Reports from the NCVO reveal that further pressure may be placed on charity resources, due to the Government’s plans to reduce public spending.

Most particularly, charities that work in the social services sub-sector may receive the most pressure on resources, as cuts on public service provision and lower incomes on poorer households, may result to the public turning to charity support. New report reveals UK charity resources may be strained, due to public sector cuts

According to the Association of Directors of Adult Social Services (Adass), local authorities are planning to save £824 million on social care budgets in 2017 and 2018, despite receiving an extra £1 billion to stop the decline of services. 

However, cuts are most likely to affect those that receive care support. This includes, hospital and home health visits, as well as care for the elderly and disabled; thus, increasing the possibility of people turning to local charities for additional support. Consequently, this can result to additional strain on smaller charities and their services.

Overall, the voluntary sector contributes £11.1 billion to the UK gross added value, which is calculated by adding together 'staff costs' and 'expenditure on goods and services', then subtracting the total amount with 'income from sales of goods and services'.

Currently, there are 165,801 voluntary institutes in the UK, the proportion of which is dominated by small and medium sized organisations. Yet, larger organisations, (particularly those whose annual income amounts to £1million or more), contribute to 80% of the overall voluntary sector's income, despite only accounting for only 3% of the voluntary sector. 

However, charities that have planned to rely on EU funding are also at the risk of cuts, as the UK Government have decided to only fund charities that can prove they are of value for money. 

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