The Consumers' Association, the charity behind the Which? brand, has said it is using reserves to maintain its “significant charitable spend” after the organisation’s income decreased in the most recent financial year.
The accounts for the year to June 2022 suggest the cost-of-living crisis may put pressure on the charity going forward.
The charity had already closed Which? Mortgage Advisers in 2019-20, which meant it experienced an expected decline in income.
According to the charity accounts, in 2021-22 it faced supplier costs increasing, as well as a fall of revenue from £88.9m in 2020-21 to £86.7m in 2021-22.
Its income was also affected by a drop in those paying Which? membership, from 612,805 in 2020-21 to 576,932 in 2021-22.
Plan to draw down reserves
Chief executive Anabel Hoult, writes in the accounts that “now is potentially the time to call on some of the reserves we have built up over the years”.
She says the organisation would prefer to do that “rather than looking to scale back our ambitions to manage in difficult times and against tough competition”.
“Using these resources to support consumers now will pay dividends for us in the future,” she says.
A Which? spokesperson added: “The pandemic, and now the cost-of-living crisis, have put pressure on household spending and Which? has not been immune to this, particularly when it comes to our paying membership numbers.
“As a self-funding charity, we are already delivering our plan to mitigate the impact that the current economic climate is having on our subscription revenue and securing a return to revenue growth in the future.
“As part of this plan, we are investing in our technology infrastructure and successfully growing other sources of revenue including partnerships, affiliates and endorsements. To help support this strategy, and to ensure that we maintain our significant charitable spend, we are using some of our reserves.”
Diversifying income
In the chair’s foreword, Judy Gibbons states the commercial activity of Which? is what ensures “the future of our charitable work” and it therefore has a “clear strategy to ensure Which? is on a strong financial footing to achieve this”.
This means it will aim to diversify its income. For example, five years ago non-subscription income made up 10% of total income, and that figure has now increased to 16%.
The accounts read: “We are confident that our strategy to diversify our income through our commercial business and buying journeys has mitigated some of the revenue effects, and stands us in good stead for the future”.
In 2022/23 it will also launch a “refresh” of the brand with the aim “to make clearer what Which? does” and give it a more modern feel.
Staff and pay
The gender pay gap data shows men are paid 3.64% more than women, which is below the national average.
For April 2021, group ethnicity pay gap shows on average for the eligible employee population, colleagues are paid 3.43% more than colleagues who reported their ethnicity as white.
Meanwhile, Hoult’s pay decreased from £374,000 to £357,000 in 2021-22 as some organisational objectives were not achieved during the year.
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