The ‘mini-budget’ was announced by the Chancellor on 23rd September (2022) due to the rapidly escalating cost of living crisis. Sadly the budget meant that there would be little in the way of support for people and communities. A further budget is now expected on 31st October 2022.

On October 17th (2022), the government announced support within its Growth Plan to protect households and businesses from high energy prices. The Energy Price Guarantee and the Energy Bill Relief Scheme are supporting millions of households and businesses including charities with rising energy costs, and the new Chancellor Jeremy Hunt plans to continue to do so from now until April next year. However, Jeremy Hunt now says that any support after April will only be targeted to those most vulnerable meaning many households and organisations could be struggling in April 2023.

Due to the crisis, people are having to turn to charities for help, yet charities need the funding to ensure they can continue running. Charities expect their energy bills to rise by anywhere from 200% to 1,700% over the next six months.

How This Could Affect Charities 

The scheme may provide immediate relief to charities, but when it hits next April, charities are likely to face problems. The charity, Family Space from Cheltenham, said the government’s energy price cap would not be enough help for the most vulnerable.

For struggling families, it was “a welcome relief, but not a solution”, the charity’s manager Sarah Avery said. Family Space has a new project called #FeedCheltenham, which involves Local Charities, Schools and Churches working in partnership across the food support network to ​feed people in Cheltenham. Increasing numbers of people are using the service, but fewer are donating. 

Due to the significant effect the cost of living crisis will have on communities and government support which will only last until April, the role of charities and volunteers will be more crucial than ever. The Joseph Rowntree Foundation and Turn2Us have also highlighted how people will be impacted by the lack of further financial help combined with an increasingly severe benefits system.

NCVO suggests charities should plan when budgeting and be aware of the impact of reimbursement delays on volunteers’ finances. NCVO have also stated in their Government policy and funding round-up that ”We’re hearing about volunteers increasingly claiming expenses, alongside concerns some will prefer face-to-face opportunities that provide refreshments and a warm place to go over the winter months”

The Effects on Volunteers

A new report by Volunteer Scotland was released on the 27th of September discussing the impact the cost of living crisis will have on volunteers and volunteering. Increased demand for volunteers is needed for charities that focus on giving support to tackle the financial, health and well-being of the cost of living crisis.

There may also be a reduced number of volunteers as a decrease in disposable income could stop people from volunteering as their free time now needs to be used up by working another job. However, volunteering may be more attractive as people can take the opportunity to ‘get out of the house’ and take their minds off the crisis during this stressful time. The health and well-being of volunteers may be largely impacted as the cost of living crisis could cause financial stress and uncomfortable living environments.

The cost of living makes the reimbursement of volunteers a vital issue. If charities can’t afford to reimburse volunteers then it could have a large impact on the inclusivity and diversity of the voluntary sector as it can mean only those who can afford to be out of pocket can volunteer. 

What Extra Support Is There? 

NCVO have cost-of-living help and guidance, including support, webinars and training opportunities. They also have a small charity helpdesk if any extra information or advice is needed. On the 30th of November 2022, they will also be hosting a webinar on “How to manage rising energy costs” where they will be sharing ways to help you keep costs down during the energy crisis.

More on the cost of living crisis and extra support can be found here. 

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