Volunteering England lost more than half its workforce in the 2011/12 financial year, as its income plunged by over 50 per cent from £5.5m to £2.7m. 

The bulk of income loss at the charity was caused by the Cabinet Office halving its strategic partner grant from £1.7m in 2011 to £500,000 this year.

The charity lost £1.2m in grant funding from the Department of Health and the Department for Work and Pensions. It also saw income from membership, accreditation and professional development plummet by 52 per cent from £642,153 to £308,163. 

Volunteering England’s accounts reveal it ended the year with a deficit of £443,639, after reporting a £54,050 surplus last year.

The charity’s wage bill dropped by around 40 per cent to £1.3m, reflecting a cut in its workforce by nearly half at the end of 2010/11 financial year when 23 members of staff were made redundant.

In 2011/12 the number of staff earning more than £60,000 dropped from three to two.

Volunteering England is currently in merger talks with the NCVO. Sir Stuart Etherington, chief executive of NCVO, says the merger is expected to be completed by the end of the year.

The merged organisation will be know as the National Council for Voluntary Organisations (NCVO), but will retain the Volunteering England brand.