Age UK spent £1.81m on 120 redundancies in 2014, on top of £1.17m last year, as part of a review of the structure of the organisation, according to its latest annual accounts.

The accounts for the period to the 31 March 2014, say the redundancies were part of looking at how the charity could deliver services to beneficiaries more effectively and would mean an on-going salary reduction of more than £4m.

Age UK returned to growth in 2014 with overall turnover up 4.9 per cent to £166.6m, after last year’s income dropped by 5.2 per cent to £158.9m.

The increase was due to growth in legacies, which were worth £22.1m, and gifts and donations, which were worth £18m.

There was also an increase in the charity’s trading activities. Age UK spent £78.3m on its charitable activities. This includes £46.2m from retail, up from £44.7m in 2013, £42.4m from insurance and other commissions, up from £37.5m, and £24.6m from other trading activities, which includes raffles, lotteries, corporate sponsorship, events and training, up slightly from £24.3m.

“Our social enterprise activities, including our financial services, shops, training and products that help people stay independent, play an increasingly important role in raising the money we need to help people love later life,” the charity’s accounts say.

Of total voluntary income, £5.5m was raised for the organisation’s international arm, Age International, which was up from £3.7m the previous year. A Syria emergency appeal to support older refugees in Jordan raised £350,000 and £500,000 was raised for older people affected by typhoon Haiyan.