Charitable trusts in crisis due to energy prices and cost of living crisis

Charitable trusts in Wales, Scotland and England are in crisis, heading towards crisis and severely at risk due to the cost of living crisis, according to the charitable trust members’ association Community Leisure UK (CLUK).

CLUK members operate pools, gyms, theatres, libraries and parks and are calling for the UK government to extend the energy price cap to cover public leisure and culture and give them more financial support.

Key findings from one of the most in-depth member reviews ever undertaken by CLUK found that 82 per cent of its members in Wales are at risk, ranging from those that are in crisis now to those that can see the crisis point on the horizon.

In Scotland, that figure is 89 per cent. In England, 75 per cent are at risk, in crisis or heading towards crisis with 21 per cent currently in discussions and planning around the impact of closures.

Closures have already been announced by some trusts, including Freedom Leisure, which has temporarily closed the pool at Rye Sports Centre, East Sussex to combat rising costs, while Richmondshire Leisure Trust say they can no longer run Colburn Leisure Centre, North Yorkshire due to significant rises in operating costs.

“This is the first wave of what is expected to be a long period of uncertainty and crises for our members due to rising energy prices and the cost of living crisis,” said Phil Rumbelow, chair of Community Leisure UK.

“The majority of trusts currently at risk will move into crisis within the next twelve months. April and October 2023 are cited as critical points for members due to energy contracts ending, increases in staff wages for the new financial year and local authority funding decisions.

“Charitable trusts make a valuable contribution to helping improve the health and wellbeing of communities. The government must recognise them as a vulnerable sector, and we encourage local authority partners to be more flexible with their contracts.”

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