Culture, Media and Sport – in the House of Commons on 9th March 2023.
What assessment she has made of the impact of increases in the cost of living on the charity sector.
We know that many charities are seeing increased demand for their services from individuals, and they are contending with increased running costs, which is having an impact on their financial situation. With Government support, charities have shown significant resilience over the last few years. I and my Department regularly engage with sector stakeholders and continue to monitor the impact of rising costs.
Research into charities and donation trends has revealed that 36% of consumers will cut their charitable donations in the next three months, which may see charities lose up to £580 million. What recent assessment has the Minister made of the impact of the cost of living on the charity sector amid concerns of economic viability? What additional steps can the Government take to support charities through these difficult times?
The hon. Lady is absolutely right to raise this issue; it is one reason that I have made sure that I am continually engaging with the sector to understand exactly what the situation is and how it is dealing with it. There has been significant support in the past and I continue to talk to colleagues across Government about how we can help. I was also pleased that this week, as a result of the dormant assets scheme, a further £76 million has been allocated specifically to address cost of living problems.