Leonard Cheshire Disability saw its income drop by just over £5m last year to £154.5m, ending a five-year upward trend, according to its recently published annual accounts.

The charity’s income in 2010 was £155m and it climbed steadily to almost £160m last year.

For the year end 31 March 2014 income from fees and grants fell £143.8m to £141.2m which the report attributes to government cuts. The charity’s expenditure on social care activities fell from £145.7m to £142.8m, meaning its margin on social care improved slightly.

Voluntary income fell from £13.4m to £12.4m partly down to lower legacy income.

Total expenditure fell from £156.8m to £153.5m, which is mainly down to a £3m decrease in spending on charitable activities.

Ilyas Khan, chair of Leonard Cheshire, wrote in the report: “There has rarely been a time in our history when every penny raised from donations has been so valued and so carefully spent to such a great effect.

“We have continued to look at ways to improve how we manage costs, whether that is by securing better prices for essential items, such as sheets and stationery, reducing use of temporary staff, or more efficient ways of working.”

The average number of people employed at the charity was 4,861. Twenty seven people were paid £60,000 with one unnamed employee earning up to £150,000.