Charity sector has lost 25,000 jobs in Covid crisis with another 35,000 likely to follow as fundraising events are axed, charity shops shut and donations dry up
- In a survey of 455 UK charities 19 per cent have already made redundancies
- Further 23 per cent plan to make more cutbacks once the furlough scheme ends
- But it comes as charities expect 68 per cent rise in demand in next six months
The charity sector has lost 25,000 jobs due to the coronavirus crisis with another 35,000 likely to follow as fundraising events are axed, charity shops shut and donations dry up.
In a survey of 455 UK charities 19 per cent have already made redundancies with a further 23 per cent planning to make further cutbacks once the government’s furlough scheme comes to an end, according to Pro Bono Economics.
It was previously announced that there have been 5,400 job losses in the charity sector since the start of the pandemic.
But the research now suggests that the true figure is closer to 25,600 – with the number of redundancies expected to rise by the end of the year.
The charity sector has lost 25,000 jobs due to the coronavirus crisis with another 35,000 likely to follow as fundraising events are axed, charity shops shut and donations dry up. Pictured: Charity shops in Woodbridge, Suffolk
In a survey of 455 UK charities 19 per cent have already made redundancies (figures above)
A further 23 per cent planning to make further cutbacks once the government’s furlough scheme comes to an end (figures above)
It is thought that the stark number of job losses will result in a painful contraction of charity provision across the country at a time when hundreds more are expected to rely on them.
Unemployment in the UK is anticipated to double in the run-up to Christmas as the economic uncertainty continues – with charities expecting a 68 per cent rise in demand within the next six months.
This pressure is expected to last well into 2022.
It comes after Chancellor Rishi Sunak announced a grant for charities of £750million in April.
But the funds have largely been directed to causes exacerbated by the Covid-19 outbreak and it does not cover the estimated funding by a shortfall of around £10billion.
Mr Sunak said at the time that the government would not be able to match every pound of spending the sector would have ordinarily received this year.
It has meant that 98 per cent of charities across the country have been forced to take action themselves to respond to the financial challenges of Covid-19.
It is thought that the stark number of job losses will result in a painful contraction of charity provision across the country at a time when hundreds more are expected to rely on them. Pictured: Sign in Oxfam at Barnard Castle, County Durham
The study found that 98 per cent of charities across the country had taken action to respond to the financial challenges of Covid-19
Matt Whittaker, CEO of Pro Bono Economics, said: ‘Charities have been under extraordinary pressure since the start of the pandemic, dealing with the perfect storm of increased demand and constrained resources.
‘To date they have responded with typical resilience and invention, but the coming months look set to prove tougher still.
‘With the recession biting and unemployment rising, the social sector has never been more needed. But an alarming proportion of jobs in the sector are now at risk.
‘That means many of the charity workers who have provided vital support to millions across the country since the start of the Covid crisis are facing a very uncertain future.’