A large modern slavery and crime reduction charity that delivers government-funded services has announced it will undertake a “managed closure” this year.
In a statement this week, Causeway said that following “a detailed financial review which confirmed the charity can no longer operate sustainably”, its operational services are expected to close by the end of June.
Causeway, which employed 181 staff as of last year and supports over 2,000 people annually, told Civil Society that “a formal consultation process is underway with all employees”.
“As is standard practice, we’re not disclosing details, but we’re committed to supporting all colleagues throughout the process,” a spokesperson said.
“We’re beginning a managed closure of our services, and our focus is on ensuring a safe, managed handover for the people we support.”
Causeway is one of 13 organisations in England and Wales that are subcontracted by the Salvation Army to administer the modern slavery victim care contract (MSVCC) awarded by the Home Office.
The charity’s accounts for the year to 31 March 2025 show that it recorded a total income of £8.96m, which includes £8.72m from four government contracts.
Contract losses
In its 2024-25 accounts, Causeway said the change in government had “a significant financial impact” on the charity sector, including itself.
It said the increase in employers’ national insurance contributions and uncertainty the 2024 budget placed on public sector commissioning budgets “led to us not only losing two of our crime reduction contracts, representing significant income to us, but also facing a significant increase in our core overheads that could not be contained”.
“Due to these financial impacts, we were forced to review the scale of our workforce and our overhead expenditure and put in place an efficiencies programme to address the resultant deficit.
“This not only meant job losses but also a need to rethink the planned strategic plan objectives and a rescope of what could be achieved and what should be the focus of the forthcoming three-year period.”
The accounts show that in 2024-25, Causeway recorded a total income of £8.96m (2023-24: £9.63m) and spent £9.52m (2023-24: £9.76m).
‘Our priority is the safety and wellbeing of the people in our care’
The Salvation Army was first awarded the MSVCC by the Home Office and Ministry of Justice in July 2011.
Under the contract, which was initially awarded for two years and has since been extended, the Salvation Army is responsible for the oversight of the delivery of specialist support services to adult victims of human trafficking identified in England and Wales.
When the contract was awarded in 2020, it was worth £281m over eight years until 28 June 2028.
However, Lord Hanson of Flint said last year that through the MSVCC, the Home Office is contracted to spend £379m over five years.
A spokesperson for the Salvation Army told Civil Society: “We’re sad to learn that Causeway, a longstanding and valued partner for more than 15 years, will be undertaking a managed closure of their services.
“The Salvation Army’s first priority is the safety and wellbeing of the people in our care. We’re working closely with Causeway to ensure a smooth transition of services, and we’ll ensure survivors of modern slavery continue to receive the help they need.”
Civil Society has contacted the Home Office for comment.
