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£3m carers charity announces closure and 87 redundancies

18 Mar 2024 News

The Care Collective logo

The Care Collective

A charity that provides services for unpaid carers and people with care needs in south Wales has announced that it will close and make its 87 employees redundant.

Last week, the Care Collective (TCC), previously known as Carers Trust South East Wales, said it would close permanently this month after operating for more than three decades.

The charity’s trustees cited a “difficult financial environment” in a statement last week, which said they had considered “all possibilities” to secure the financial future of the organisation but were unable to do so.

In the year to 31 March 2023, TCC recorded a total income of £3.36m, down from £3.85m the year before, against expenditure of £3.73m. 

‘Incredibly difficult and sad decision’

In their statement, the charity’s trustees said the decision to close was “incredibly difficult and sad” for them and staff.

“It has not been taken lightly, but following a full review and assessment with the senior team to urgently address the long-standing challenges facing the charity.

“These challenges included increasing costs, late confirmation, awarding and payment of contracts, and difficulties in recruiting staff across the health and social care sector.

“Having considered all possibilities to secure the financial future of the organisation with expert financial and legal advice, our aim is to oversee a controlled closure of TCC, leaving a legacy of which we can be proud. All services will cease by 31 March 2024.”

‘I fear for the future of other third-sector bodies’

Karen Robson, who was appointed as chief executive of TCC in June last year, said her plan had been “to build on the reputation and success of the Care Collective and continue to deliver the quality services we have provided for over 30 years”.

“Sadly, this was simply not the direction I was able to take,” she said. 

“Instead, my focus has been on working with the trustees and my senior leadership team to clarify the current and future financial position and investigate all possible avenues in order to continue the charity’s operations.

“Regrettably, this assessment hasn’t been positive and has led to where we are today, unable to prevail in this difficult financial environment.”

Robson added that many other charities “have met the same fate due to the harsh economic realities of the last few years”. 

“Knowing we aren’t alone in this position is of no comfort and I fear for the future of other third-sector bodies, particularly in the health and social care sector.”

‘Very competitive market’

TCC’s 2022-23 accounts say that the charity faced “a number of challenges with securing and delivering contracts for respite and care services with local authorities and health boards”.

“The market is very competitive and the charity has found itself in a position where it hasn’t been able to fully recover its direct and indirect costs of running those contracts,” they read.

“The charitable company’s continued operations depend on whether they can continue to secure additional funding and retain their staff to deliver on these contracts.”

TCC recorded a deficit before transfers of £375,000 in 2022-23 and reported using its reserves to prioritise service delivery to unpaid carers.

At 31 March 2023, the charity held total reserves of £896,000 (2022: £1.27m) including unrestricted funds of £540,000 (2022: £665,000). 

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