After a long period of waiting, on the 8th April 2020 the Chancellor announced a £750m package to support struggling charities during the coronavirus pandemic. The move will be welcome news for the third sector given significant concerns that some charities were potentially facing collapse due to the impact of the ongoing COVID-19 pandemic. A number of charities, including the St John Ambulance Association, had warned that they could go bust unless they received state aid.
The measures announced involve cash grants being provided direct to charities providing key support services during the current crisis.
Charities providing vital services and helping vulnerable people through the current crisis will benefit from the £360 million allocated by government departments. These are expected to include:
The current expectation is that government departments will now work to identify priority recipients, with the aim for charities to receive money in the coming weeks. The application system for the National Lottery Community Fund grant pot is expected to be operational within a similar period of time.
Where charitable services are devolved, the UK Government has applied the Barnett formula in the normal way. The expectation is that the devolved administrations will receive £60 million through the charities pot. This is broken down as follows:
There may also be further Barnett allocations, dependent on the final projects funded, through the £360 million direct grant pot.
We will of course provide further details and updates as these are announced.
For details of other sources of funding to support charities through this crisis, please click here
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