Impact of the Budget 2024 on disability charities

18 December 2024

Impact of the Budget 2024 on disability charities

A report by Cordis Bright.

Cordis Bright has conducted analysis of the Autumn Budget on members of VODG, a national charity that brings together leading not-for-profit organisations who provide services to disabled people. A survey of its members showed that members will face a potential £266million shortfall.

  • 1 in 3 disability charities poised to hand back local government contracts.
  • A quarter considering redundancies due to increasing staff costs.
  • Over 60 per cent expecting a financial deficit by March 2025.

Tom Noon, Chair of Cordis Bright, says: "There is often a myth that not-for-profit organisations can somehow find ‘other sources’ of funding. In reality the disability charities we heard from are providing a public service funded by the state. This is not a lucrative activity and many years of below inflation increases in funding have pushed these organisations to the limit of sustainability.

"Local authorities derive significant benefit from the willingness of not-for-profit organisations to contribute to the costs of what some might describe as ‘extras’ but others would see as integral to good quality provision. Disability charities will not be able to continue to fund this type of additional input if the organisation is losing money."

Dr Rhidian Hughes, Chief Executive, Voluntary Organisations Disability Group, says: "The recent Budget announcements on increased employer national insurance contributions and national living wage present significant challenges for disability services. Third sector providers of frontline services have faced years of under-funding, and these changes are set to push charities to the brink.

"The government has pledged £680m for social care in its latest budget but the amount needed across the sector is closer to £2.8bn. Without an exemption, or protected funding to cover the commitments being introduced by government, it will mean that services for disabled people will at best shrink, and at worse close. Without this action, the rights and legal entitlements of disabled people to care and support will be pulled away. Public sector commissioners are in no place to be able to pick up and run these services and the question we are left with is who will then support disabled people with life-long conditions?"

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