Young people worst hit by charity cuts

The research looked at the impact of cuts to services provided by charities due to Covid-19 disruption and financial problems.

This found that 17 per cent of under-25s have been unable to use charity services.

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In comparison only one per cent of over-65s said the closure of charity services is an issue, according to the research by investment firm James Hambro & Partners.

Its research also looked at the extent of demand on charity services amid the Covid-19 pandemic.

It found that just under one in ten people used charities more during the health crisis.

“Increased demand for services has however come at a price for charities who are also under financial strain themselves,” said James Hambro & Partners portfolio manager Patrick Trueman.

Charities' ability to support young people is set to come under increasing strain when the £20 Universal Credit uplift ends in October.

Earlier this month the voluntary sector union Community warned that the expected surge in demand due to the end of the uplift could lead to a “mass exodus” of charity staff, that could “cripple” the voluntary sector.

Meanwhile, research by the YMCA has found that the cut to the benefit will adversely affect young people, who are already impacted by low wages and poor housing. The move will increase the risk of debt they case and reliance on food bank services, the YMCA found.  

Around one million young people will be impacted by the cut, the charity added.

Another impact on charities ability to support young people is this week’s end of the government’s furlough scheme, which will could lead to further closure of services.

The end of the Coronavirus Job Retention Scheme is likely to see an increase in redundancies, warns think tank the Institute of Fiscal Studies, as employers struggle to meet workers’ salaries.

It found that London workers will be among the hardest hit, as they find it harder than those in many other regions to find work.