Muslim charity increases beneficiary pay-outs by 15% after mini-budget

28 Sep 2022 News

The National Zakat Foundation (NZF) is increasing its grants to beneficiaries by 15%, following Friday’s mini-budget.

NZF has said this is to help combat the rise in inflation, housing costs and energy crisis.

The organisation collects and distributes zakat nationwide, a wealth tax in the Islamic faith, and hopes that their grant increase will help the Muslim community through the cost-of-living crisis.

Sohail Hanif, chief executive of NZF, said: “While official figures put inflation at around 10%, food inflation is at 12.5% and housing expenses are at 20%. 

“We have decided on a median increase of 15% to our grant amounts to reflect the struggles of our most vulnerable,” he said.

“While we welcome moves to cap energy prices, they are already too high for many families. The Muslim community in the UK has stepped up with cash for those most in need, giving more to NZF than ever before.”

Nonetheless, he said “demand is still outstripping money coming in in many parts of the country”.

With these changes, the increase means a couple with two children will get £870, where they previously would have got £775.

The charity says applications to its hardship relief fund for essentials like food and clothes have increased by at least 90% year-on-year.

Hanif said: “We have handed grants to 11,545 people year to date.  Zakat money has to be spent 11.5 months after it is given, so with the increased number of applications, more grants will be given as there was 30% increase in Zakat raised this year.”

“This increase is backdated to Sep 12th, but it’s worth noting we increased grant sizes by an extra £200 per family to help with back to school costs over the summer.”

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