DCMS refused request to bail out BYC ahead of closure
Fiona Simpson
Friday, April 5, 2024
The government refused pleas to provide emergency funding to prevent the closure of the British Youth Council (BYC) due to the “scale” of the charity’s financial difficulties, a letter to UK Youth Parliament (UKYP) members reveals.
The BYC announced its closure last month citing “financial challenges”.
Responding to an open letter from UKYP members raising concerns over the BYC’s closure - including the loss of its contract to run the UKYP - Stuart Andrew, minister for sport, gambling and civil society, said that DCMS knew the BYC was facing “significant financial difficulty” in February.
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However, he added that “the scale of these challenges unfortunately meant that DCMS could not provide emergency funding as this would not meet the key standards of managing public money”.
Internal documents and recordings of staff meetings seen by CYP Now, reveal that BYC leaders informed staff of plans for a dramatic restructure on 13 March in a bid to save the organisation.
This included removing a layer of management from its workforce structure and closing its rented London office.
During a recorded meeting, when restructure plans were announced, staff asked if DCMS was aware of BYC’s financial situation but were told by management that they were being spoken to about it first.
The meeting further reveals that staff payments were delayed in January due to “cash flow issues” and sees bosses highlight the administration of BYC’s charity partner The Body Shop as a key driver behind the closure.
Sources, who spoke to CYP Now anonymously, claim that DCMS was contacted twice between 13 February and 21 March, when BYC announced its closure, with requests for emergency funding for both UKYP and the BYC as a whole.
BYC had won government contracts to run the UKYP over several years and was awarded £750,000 in March last year to run it until March 2025.
Sources added that reductions in the value of the contract to run the programme over the last decade had led BYC to spend a “significant amount” of other funding and resources to deliver it.
In their open letter, UKYP members warned that the government and DCMS have a "moral duty" to ensure that the Youth Voice Programme, UKYP and the Youth Select Committee, which were all run by the BYC, "continue without disruption or diminishment”.
In response, Andrew states in his letter to UKYP members that the government is “absolutely committed” to securing the future of the UKYP.
🚨RESPONSE RECEIVED: Stuart Andrew, Minister for Sport, Gambling and Civil Society has responded to the open letter. Breakdown and what happens next in🧵 pic.twitter.com/lqZoFaPcKN
— Hadyn Cutler MYP (@HadynCutler) March 28, 2024
He said he had been in contact with the BYC and regional delivery partners for the UKYP to “understand the implications of the BYC’s closure and options for securing the work of the UKYP going forward”.
“The government is absolutely committed to the UK Youth Parliament and that it continues to both represent and amplify the voices of young people,” adds the letter.
In a further statement to CYP Now, Andrew said: "I was very sorry to learn about the closure of the British Youth Council. Over its 75 year legacy, the BYC supported thousands of young people to become politically engaged and create positive change in their local communities.
"We are currently exploring how to secure the future of the UK Youth Parliament and thank all those who have been involved, past and present, for their ongoing support.”