Children’s charities lost more than £150m of government funding over the past year, according to data published by Children’s Partnership and NCVO.
An annual survey of charity accounts, published alongside the UK Civil Society Almanac by NCVO, reveals that government funding cuts were particularly hard on children’s charities and affected them to a greater extent than other voluntary organisations.
The data also reveals that children’s charities receive a larger portion of government funds than other charities – suggesting that they have become competitive provider of services, according to NCVO.
Anna Feuchtwang, chief executive of the National Children’s Bureau said the data reveals “how austerity measures are beginning to bite as local and central government purse strings are tightened”.
“This will significantly affect children’s charities that have shown that with their good community knowledge they can provide cost-effective and high-quality services at a local level,” she said.
Neil Cleeveley, chief executive of NAVCA said: “This backs up what our members have been telling us for some time. The very groups best placed to help children, young people and their families deal with the impact of austerity are having to deal with rising demand with fewer resources.”
The survey also reveals that donations from individuals were the largest source of income for the sector in 2012/13.
But while income from individuals rose slightly, it failed to match the “steep reduction” in income from the Government.
Susanne Rauprich OBE, chief executive NCVYS said: “This analysis tallies with evidence we’re gathering at the moment about the financial health of charities working with young people.
“It is especially concerning as there appear to be few effective strategies for mitigating the impact of government spending reductions. The report findings are a clear call for collaborative action to avoid outcomes for children and young people being affected.”