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Daily Record
Daily Record
National
Stuart Gillespie

Dumfries and Galloway charities could be forced to close due to cost of living crisis

Charities and community groups across Dumfries and Galloway are being forced to close or cut back their services due to the cost of living crisis.

A study by Third Sector Dumfries and Galloway found that 38 per cent of voluntary groups had experienced a negative impact due to financial pressures – at a time when more than half of them expected an increase in demand.

And almost a fifth believe the crisis will result in them having to offer either a new service or expand an existing one due to a rise in demand – just as budgets are being tightened.

Chief executive officer for Third Sector Dumfries and Galloway Norma Austin Hart said: “Our research reveals a worrying picture for the third sector and the services they deliver, with 28 per cent indicating a reduction in services and 10 per cent a closure.

“So many are feeling the pressure from reduced income and increased costs along with a higher demand for what they provide - a perfect storm of circumstances. We are calling on government at all levels to recognise that communities are struggling and are looking for quick practical responses.”

Nearly two-thirds of third sector organisations taking part in the survey had not planned for the extra pressure on their budgets due to the sudden increase in energy bills.

And less than half were confident the rise could be covered by their financial reserves. Those affected are beginning to look for additional fundraising, making further energy savings, or closing premises and asking staff to work at home.

Another impact of energy rises was the added uncertainty to funding applications with third sector organisations unsure what percentage extra to factor in to cover future increases.

TSDG will continue to work with organisations across the region to monitor the impact of energy costs into 2023.

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