News

Shaw Trust and Careers Development Group will merge2

Governance | Tania Mason | 9 Aug 2012

The Shaw Trust and Careers Development Group have confirmed that they will definitely merge and create a “new, transformed and innovative” organisation.

The two welfare-to-work providers, both of which are Work Programme providers, CDG as a prime contractor and Shaw Trust as a sub-contractor, appointed KPMG earlier this year to explore the risks and opportunities of a potential merger and conduct due diligence.  This process is now complete and the next stage is to work towards securing clearance and finalising the legalities.

The merger is expected to be complete by the end of this year.

Initially, CDG will merge into the Shaw Trust but will keep its current identity.  But in the longer-term, the two bodies will create an entirely new organisation.  It will be led by current CDG chief executive Roy O’Shaugnessy; meanwhile, Chris Melvin will continue in his role as interim CEO of the Shaw Trust.

CDG is currently based in Putney, London and had income last year totalling around £24m.  Shaw Trust, based in Wiltshire, is much bigger at £86m turnover. Between them they employ around 1,350 staff.

Both organisations saw their incomes fall over the past year.  But they were at pains to stress that the merger is a “blending” of the two, rather than a takeover – and is not primarily a cost-cutting exercise.

Media manager Gareth Nicholson told civilsociety.co.uk that details such as future staff numbers, location of the head office, the shape of the property portfolio and the name of the merged charity are still to be worked out. A shadow trustee board comprising trustees from both charities will be created but its composition is not yet known.  A skills audit will be conducted and new trustees may be recruited if required.

Nicholson said the focus would be on “business as usual” while the merger progresses.  The two charities offer different services in different parts of the country - CDG serves people who have been out of work for some time, helping around 31,000 people each year, while the Shaw Trust works with people at disadvantage or with disabilities, supporting 15,000 individuals annually.

The Shaw Trust has more than 50 charity shops, 14 social enterprises, and commissioned projects and contracts across the country.

LVSC: Work Programme is failing charities and beneficiaries

Separately, the London Voluntary Service Council has today urged the government to review the Work Programme, saying its existing operating structure is putting good charities out of business.

Directory: KPMG LLP | Shaw Trust