Action for Children’s total income has fallen for the third year in a row, due to “volatile markets” and “pressure on local authorities’ funds”, according to its latest set of accounts filed this week.

Action for Children’s accounts, filed with Companies House on Wednesday, show that the organisation’s total income for the financial year 2014/15 has fallen to £173m, down £6.6m from its 2013/14 total of £179.6m.

The charity attributes this fall in total income to a £9m drop in funding, particularly for its “children’s centres and family support services” and its youth and leaving care services. The organisation reported an operational surplus of £700,000, which the charity said was a “key achievement, against the backcloth of reducing income”.

The charity’s total spending for the last financial year ending March 2015 also fell; from £168.4m the previous year, to £159.8m in 2014/15. Of the total spend, over 95 per cent of the resources were expended on charitable activities; particularly on “early years and family support” services which received over £74.6m in restricted and unrestricted funds.

Action for Children employed a total of 5,363 people in 2015, an increase of 654 staff from 2014. The number of full-time or full-time equivalent staff fell by 303 in the last financial year however. Total emoluments for 2015 were £109.6m, with £89.7m going towards wages and salaries.

Sir Tony Hawkhead, chief executive of Action for Children, was paid £150,000 for the year and also received a 7 per cent contribution to his pension, which bought his total emolument for 2014/15 to £163,952. The organisation paid a total of 46 staff a salary of £60,000 or more for the financial year.

The organisation finished the last financial year with operating reserves of £40.9m; a figure well above its trustees prescribed reserves range of between £25m and £30m. This is due to receiving £11m from the sale of property, which is yet to be invested.