Charities at risk of ‘underestimating’ online fraud as one in eight experienced cybercrime last year

The Charity Commission is warning charities against the risk of online fraud, as a new survey found around one in eight charities (12%) had experienced cybercrime in the previous 12 months.

This follows earlier findings indicating that the pandemic prompted increasing numbers of charities to move to digital fundraising and operating, exposing them to the risk of cybercrime.

Most concerningly, the survey highlighted a potential lack of awareness of the risks facing charities online, with just over 24% having a formal policy in place to manage the risk. Similarly, only around half (55%) of charities reported that cyber security was a fairly or very high priority in their organisation.

The warning comes ahead of Charity Fraud Awareness Week, which begins tomorrow on 17th October 2022. The campaign raises awareness of fraud and cybercrime and brings the charity sector together to share knowledge, expertise and good practice.

It is run by the Charity Commission and the Fraud Advisory Panel and a partnership of charities, NGOs, regulators, law enforcers, and other not-for-profit stakeholders.

The Charity Commission’s new survey explored charities’ experiences of online cyber-attack. It found that over half of charities (51%) held electronic records on their customers, while 37% enabled people to donate online.

A greater digital footprint increases a charity’s vulnerability.

The most common types of attacks experienced were phishing and impersonation (where others impersonate the organization in emails or online). For both attacks personal data is often at risk.

There are lots of simple steps that can be taken to protect against cyber harms including changing passwords regularly, using strong passwords and two factor authentication, updating training and policies, making back-ups of your data using the cloud and making sure antivirus and all other software is patched to the latest version.

Many useful tools and resources will be available to help charities reduce their vulnerability to these crimes throughout Charity Fraud Awareness Week.

The survey also confirmed that there is an under-reporting of incidents when they do occur, with only a third (34%) of affected charities reporting breaches. It’s important that charities get in touch with the Commission where there has been a serious incident, even where there may be no regulatory role for the Commission. This helps the regulator to identify trends and patterns and help prevent others from falling victim to fraud.

Amie McWilliam-Reynolds, Assistant Director Intelligence and Tasking, from the Charity Commission said: “Online financial transactions, and online working generally, present a great opportunity for charities – whether in engaging supporters, raising funds, and streamlining their operations.

“This was demonstrated in particular during the pandemic, when the longer-term move away from cash to online fundraising accelerated. But online financial transactions and the collection and storage of personal data also harbour risk, and we are concerned that some charities may be underestimating that risk, and are therefore exposing their charity to potential fraud.

“We hope that projects like Charity Fraud Awareness Week help raise awareness among trustees and charity staff of the risks they may face, and of the advice and guidance available to support them in protecting their charity from fraud.

“Preventing and tackling fraud is not a ‘nice to have’. It is vital that every penny given to charity makes a positive difference, especially during these straitened times, when donors, charities, and those they support face mounting financial pressures.

Sir David Green CB KC from the Fraud Advisory Panel said: “Fraud is the UK’s most commonly experienced crime and much of it is committed online. Therefore, it is essential that charities take the security of their systems, information, people and money seriously.

“Simple cyber security measures can make a big difference which is why we’ve collaborated with UK police forces to offer a series of free cyber-security focussed events during this year’s awareness week.”

Charity Fraud Awareness Week 2022 will feature online events, talks and useful advice from anti-fraud experts, designed to help the third sector and charitable organisations tackle the problem of fraud and cybercrime.

Fraser of Allander Institute: Scotland likely to enter recession as costs continue to rise

Scotland’s economy is likely to contract in the second half of 2022, according to researchers at the Fraser of Allander Institute. The Institute’s quarterly Economic Commentary, which includes an assessment of all the key latest data on the UK and Scottish economies, was published last week.

In the Deloitte-sponsored Economic Commentary, the Strathclyde researchers have set out their new forecasts for the Scottish Economy.

The economists are forecasting growth of 3.6% in 2022, followed by a contraction of -0.6% in 2023, before returning to growth in 2024 of 0.8%. This is a significant revision down from the Institute’s previous set of forecasts in June.

The forecasts assume that the last two quarters of the year, and the first quarter of 2023, will show contractions in the economy due to wider economic challenges. This means that Scotland is likely to be entering into a recession (defined as two quarters of negative growth in the economy).

With inflation at a 40-year high, this quarter’s Commentary also includes extensive analysis of the likely impact of price rises on different types of households in the economy.

Professor Mairi Spowage, Director of the Institute, said “The data we analyse in the Commentary today points to weakening demand in the economy as inflationary pressures pervade every aspect of our lives.

“Consumer confidence is starting to weaken with attitudes on the outlook looking pessimistic. This has led us to reduce our forecasts for 2023 and 2024. Our assumption is that there will likely be contractions in the economy during the second half of 2022 and into 2023 given wider economic conditions.

“In practice, this means Scotland is likely to enter a recession.”

Angela Mitchell, senior partner for Deloitte in Scotland, said “There is no doubt that businesses in Scotland face significant challenges over the next few years. Many business leaders have never navigated their business, and its people, through a period of such high inflation and weakening economic activity.

“Charities and public bodies, unable to pass on costs or pivot plans like businesses, are also facing immense pressure. The dual blows of the pandemic and cost-of-living crisis are having a profound impact on the public sector’s spend power, while simultaneously driving huge demand for public services.

“Unlike during the pandemic, however, there is an opportunity to plan and prepare now for the months ahead. Business leaders will naturally want to focus on responding to the most immediate challenges, but they should also consider what they want their business to look like beyond the current challenges. Longer-term thinking, building in resilience and working towards creating an organisation that is fit for the future, will help businesses not only to recover, but to thrive.”

Also in the Commentary in this edition, the researchers have published an analysis of what the UK Government’s fiscal event on Friday 23rd September could mean for Scotland.

The Deputy First Minister has committed to setting out an emergency budget soon after the UK Government’s fiscal event. The announcements made by the UK Government on tax mean that there are resources available to the Scottish Government to either follow suit – or to invest the additional funding in services.

David Eiser, the institute’s Deputy Director, said “The UK Government’s “mini-budget” was anything but mini – the measures announced were very significant.

“The scale of fiscal changes – without any analysis of the sustainability of such measures – has created significant concern in the financial markets.

“The real surprises were on income tax, with significant changes announced for next financial year – albeit some subsequently reversed. Of course, these changes do not apply in Scotland, so it will be up to the Scottish Government to set out its proposed income tax policy for 2023/24 in due course.

“John Swinney has committed to producing an Emergency Budget in late October – although we should probably expect that the decision on income tax will not be set out until the Scottish Draft Budget is published. We now expect the UK Government to present their Medium Term Fiscal Plan and OBR forecasts also in late October, with the Scottish Budget likely to follow before the end of the year.”

You can read the full commentary here.

Scottish charities scoop share of £1million fund

23 charities based in Scotland have received donations of £1,000 each as part of the Benefact Group’s Movement for Good Awards.

For the fourth year running, the Benefact Group is giving away £1million to charities through its Movement for Good awards. Members of the public were invited to nominate causes close to their hearts, with another 250 awards of £1,000 available now for donation. 

Euan’s Guide, A Bear Named Buttony and Doodle Trust are some of the local charities set to benefit from the money, following overwhelming public support in the country. More than 18,500 kind-hearted residents have voted for charities across the country so far. 

In total, more than 202,000 people around the UK supported the Movement for Good awards, with over 3,900 charitable causes up and down the country receiving votes. The 250 winning charities were picked at random from those nominated, following 250 previous winners being selected in June.

It’s quick and easy to nominate, you can vote for your favourite charity online at: www.movementforgood.com

Thanking supporters in Scotland, Mark Hews, Group Chief Executive of Benefact Group, said: “We would like to thank every single person who took the time to nominate a good cause as part of our Movement for Good Awards.

“Benefact Group is the fourth largest corporate donor in the UK and has an ambition to be the biggest. Owned by a charity, all of its available profits go to good causes, and the more the group grows, the more the group can give.

“As a company whose purpose is to contribute to the greater good of society, charitable giving is at the heart of what we do. We know that £1,000 can make a huge difference to the incredible work that charities do and we’re looking forward to seeing how this financial boost will change lives for the better.”

A further 120 £1,000 grants will be given away in December and £500,000 will also be given in larger grants later this year.

For more information about the awards visit www.movementforgood.com 

Movement for Good is funded by EIO plc, part of the Benefact Group.

Full list of winning Scotland charities:

Euan’s Guide

Faceyouth SCIO

A Bear Named Buttony

More Than Fibro (SCIO)

The Church of Scotland

Seil Island Community Hall Charity

Doodle Trust

Wellbeing Scotland

Signpost

Held in Our Hearts

Back Onside

Scotia Amateur Swimming Club

NappiRunz

Ecologia Youth Trust

Amma Birth Companions (SCIO)

West Coast Furniture Bank SCIO

The Learning to Understand Needs and Abilities Project

The Rock Trust

Buttons & Bows Baby Bank

Tap Into IT Where You Are Ltd

The Indigo Childcare Group

Dundee West Community Trust

The School Bank West Lothian

Bridge the Gap!

Charities appeal to First Minister to double Scottish Child Payment bridging payments NOW

We can turn compassion and justice into action to support children in low-income households.

120 charities and community organisations are calling on the Scottish Government @scotgov to continue to do the right thing by doubling Scottish Child Payment bridging payments.

See the letter to First Minister Nicola Sturgeon (below):

#BridgeTheGap

https://bit.ly/3JWCIGJ

Do not put our human rights at risk!

The STUC is standing alongside 125 civil society organisations across Scotland to support the Human Rights Act and oppose the #RightsRemovalBill:

JOINT STATEMENT ON THE UK RIGHTS REMOVAL BILL

Our human rights are about the values we hold dear and the way we treat one another – they are about dignity, fairness, equality, tolerance, and respect. They are the foundations that help us live together freely and fairly – a safety net to protect us all.

We are therefore alarmed that the UK Government has introduced a Bill to Parliament which, if enacted, will repeal the Human Rights Act and will significantly
diminish protection for human rights in law.

Our experience of working with individuals and communities across Scotland is that the Human Rights Act 1998 (HRA) is an essential protection for our human rights. Indeed, many of our organisations submitted evidence to the Independent Review of the Human Rights Act detailing the ways in which the HRA is working well. We also collectively gave many hours of our time to respond to the UK Government’s consultation on proposals for this Bill of Rights. However, both the Panel’s
recommendations and the consultation responses have been disregarded by the UK Government in the development of this Bill.

We are very concerned that there are many elements to this Bill that will significantly reduce human rights protection. These include, for example, restricting / narrowing our relationship with the European Court of Human Rights, lowering standards of protection, and making it harder for the court to protect us from serious and irreparable harm.

The rights removal bill will undermine all of our human rights and significantly impact the realisation of rights for individuals whose human rights are currently most at risk. The UK Government’s proposals for reform are out of step with political and public opinion in Scotland. There is overwhelming support across Scotland to go forwards and not backwards on human rights, for a strong human rights legal
framework and not one that is watered down.

We therefore strongly urge the UK Government to reconsider this Bill and instead, consider what can be done to better protect human rights for all in Scotland, and across the UK.

This statement is supported by 125 organisations:

New £4.25 million grant kick starts UK-wide collaborative research effort to end motor neuron disease

£1 million for MY NAME5 DODDIE Foundation

·        £4.25 million research grant has been awarded that seeks that seeks to discover meaningful MND treatments within years, not decades  

·        Grant awarded by charities LifeArc, MND Association, My Name’5 Doddie Foundation and MND Scotland, together with government research organisations Medical Research Council (MRC) and National Institute for Health and Care Research (NIHR)

·        Funding awarded to researchers from King’s College London, University of Sheffield, University of Liverpool, University College London, University of Oxford and University of Edinburgh to establish a new UK-wide motor neuron disease (MND) research partnership to address problems hindering progress

·        Funding is a springboard for the MND community to develop plans for further ambitious and large-scale research projects, attract significant investment for MND, and encourage more centres to join the scientific mission to find treatments and ultimately a cure for MND

·        Generosity and fundraising efforts of charity supporters have played a big part in making this partnership a reality.

Global MND Awareness Day: A group of charities and government research organisations has awarded £4.25 million to MND experts at six UK universities to kick start collaborative efforts to end motor neuron disease (MND).

This new ‘MND Collaborative Partnership’ brings together people living with MND, charities LifeArc, MND Association, MND Scotland and My Name’5 Doddie Foundation, government bodies Medical Research Council (MRC) and National Institute for Health and Care Research (NIHR), with researchers from King’s College London, University of Sheffield, University of Liverpool, University College London, University of Oxford and University of Edinburgh.

The partnership team will work together to find solutions to address problems currently hindering MND research and seeks to discover meaningful treatments within years, not decades.

Members of this new UK-wide MND research partnership will work together and pool their expertise over three years to:

  • coordinate research effort and deliver maximum impact for people with MND
  • develop better tests to measure MND progression and that allow doctors to compare different drugs
  • improve MND registers so doctors can collect detailed, high-quality data about the disease, and understand which patients are most likely to respond to a particular drug and therefore recommend them for the trials most likely to benefit them
  • support people to take part in clinical trials more easily
  • develop more robust lab tests and models of disease to enable scientists to test theories about the disease and a pipeline of potential therapeutic agents that could ultimately be used as MND treatments.

They will also launch a major new study involving 1,000 people with MND from across the UK to better understand disease progression and how people respond to new and existing treatments.

MND (also known as amyotrophic lateral sclerosis, or ALS) is a devastating neurodegenerative disease affecting the brain and spinal cord. People progressively lose nearly all voluntary movement and need complex care, and around half of those diagnosed die within two years.

Six people are diagnosed with MND every day in the UK and the condition affects around 330,000 across the world. One person in every 300 will develop MND. The only licensed drug for MND in the UK has a modest effect on extending life – but no treatments are available that can substantially modify disease or cure the condition.

Professor Ammar Al-Chalabi, co-director of the research programme and Professor of Neurology and Complex Disease Genetics at King’s College London and Director of King’s MND Care and Research Centre said: “Our goal is to discover meaningful MND treatments within years, not decades. This landmark funding will bring the UK’s major MND research centres together for the first time in a coordinated national effort to find a cure.

“We now have a much better understanding of MND, so we must take this opportunity to accelerate development of new treatments and work together to move this knowledge into the clinic and help people affected by this devastating disease.”

Dr Catriona Crombie of LifeArc, the charity which has coordinated efforts from all funders to deliver this landmark MND Collaborative Partnership, said: “Over recent years, scientists have made great progress in MND, and this has opened up several promising avenues that could ultimately make a difference to patients.

“But there are some barriers hindering progress. For the first time, the MND community – that’s patients, funders, scientists and doctors – have come together to work out the problems and plan a way forward. As funders we are really excited at what this exceptional group of people could achieve for those affected with MND.”

David Setters, who is living with MND and has been involved in shaping the partnership said: “We welcome this collaboration, which paves the way for the £50 million government investment promised in November 2021, focused on making the first meaningful treatments for MND available within years, instead of decades. 

“It brings real hope to those of us living with MND to see our leading neuroscientists and charities coming together in this way. The prospect of easier access to clinical trials and the most promising therapies being fast-tracked gives us a much-needed boost and brings a real sense of purpose to the community.”

Professor Christopher McDermott, one of the co-directors of the research programme and Professor of Translational Neurology at the Sheffield Institute for Translational Neuroscience (SITraN) said: “We believe that by combining and coordinating our expertise, we will be more effective than if we work on projects in isolation.

“This partnership will provide the infrastructure to attract additional MND funding and enable further MND centres and researchers to join forces in the national effort to find effective treatments for MND. The partnership is the first step towards our goal to establish a national MND institute.”

Health and Social Care Secretary Sajid Javid said: “Motor neuron disease has a devastating impact on those who are diagnosed, their families and loved ones – but there is hope. 

“This new partnership is a highly ambitious approach which will drive progress in MND research and, backed by £1 million of government funding, will bring the MND research community together to work on speeding up the development of new treatments.The collaboration across government, charities, researchers, industry and people with MND and their families will take us one step closer to one day achieving a world free from MND.”

The Partnership was formed in 2021 to coordinate and pool funding for research into MND to speed up progress and help research to move towards the clinic and ultimately reach patients faster.

Funding for the MND Collaborative Partnership research grant totals £4.25 million and contributions are as follows: LifeArc (£1 million), MND Association (£1 million), My Name’5 Doddie Foundation (£1 million), MND Scotland (£250,000), Medical Research Council (MRC) (£500,000) and National Institute for Health and Care Research (NIHR) (£500,000).

Aldi donates 5,089 meals to Edinburgh and Lothian charities over the Easter school holidays

Aldi helped local charities in Edinburgh and the Lothians provide 5,089 meals to people in need over the Easter school holidays. 

The supermarket paired its stores up with local charities, community groups and food banks to donate surplus food, making the most of unsold fresh and chilled food throughout the Easter period. 

Around 105 tonnes of food were donated throughout the UK, with more than 187,000 meals going to causes focused on supporting families and children.  

The donations followed research from Aldi and community-giving platform Neighbourly which found that 98% of food banks in Scotland have seen demand soar since the start of the year. 

Neighbourly recently polled more than 700 food banks and community causes nationwide and found that an estimated 30% of people using these services in Scotland in recent months have been new to the food banks. 

On average, food banks in the region reported an average rise in demand of around 28% for their services so far this year, with expectations of further increases of around 29% in the next three months as higher energy bills and an increase in national insurance contributions add to the pressure.  

Liz Fox, Corporate Responsibility Director at Aldi UK, said“The school holidays can be a busy time for the local charities and organisations we support, but, especially in the current climate, food banks are experiencing even greater demand than usual.  

“We’re proud to support so many good causes in Edinburgh and the Lothians, helping them to provide meals to those in need over the recent school holidays.” 

Steve Butterworth, from Neighbourly, added: “The findings of our latest survey highlight that the cost-of-living crisis is clearly deepening, with families and households up and down the country really starting to feel the pinch and turning to charities and local causes for support as a result.  

“During what is a hard time for everyone, anything people can do to give back in the coming weeks will make all the difference.” 

Aldi has community donation points in stores nationwide to help those in need, and is encouraging customers to help in any way they can.

According to its poll with Neighbourly, products that are most in demand at local community groups include tinned food, tea and coffee, UHT milk, toiletries, and household cleaning products. 

SCVO: Voluntary organisations in Scotland are more vital than ever

Data shows scale of crucial voluntary sector impact in Lothian and beyond

Figures collated by the Scottish Council for Voluntary Organisations (SCVO) using data from OSCR, Volunteer Scotland, the TSI Network Scotland, and the Social Enterprise in Scotland Census have highlighted the crucial role of charities, social enterprises, and community groups in Scotland.

The data reveals that across Lothian alone there are currently 3,729 registered charities, generating a combined annual income of £4,342,612,905, and 1,125 social enterprises operating across the TSI area.

Along with employing 64,190 paid staff, an amazing 234,336 people from across the area also support organisations by volunteering their time and skills to help people, communities and groups, making an invaluable contribution to their local community in the process.

Nationally, Scotland enjoys the benefits of over 40,000 voluntary sector organisations, employing over 100,000 paid staff – a similar number to the Scottish digital and technology sector.

The Scottish Council for Voluntary Organisations (SCVO) and TSI Scotland Network believe that sharing this data will further highlight the indispensable contribution of the voluntary sector, particularly over the course of the Covid-19 pandemic, during which charities and voluntary organisations, both local and national, have played a vital role across Scotland.

Anna Fowlie, Chief Executive for the Scottish Council for Voluntary Organisations (SCVO) said: “We know that the voluntary sector is a major player in Scotland in terms of economic impact and employment.

“Our recent #NeverMoreNeeded campaign highlighted how crucial the sector has been during the pandemic across the country, and continues to be essential in recovery.

“These findings highlight not only how vital charities, social enterprises and community groups are in Lothian, but also the level of local support provided to these organisations through volunteering, which is really encouraging.”

A spokesperson for Edinburgh Voluntary Organisations’ Council (EVOC) said: “Scotland’s vibrant voluntary sector is a key asset in our communities, even more so over the last two years, but it is one which is often underestimated and overlooked.

“We hope that this data, which shows the size and scale of the sector, can emphasise just how vital the sector is and how much it supports us all, both locally and nationally.”

Foysol Choudhury, MSP for Lothian, said: “I welcome the figures produced by the Scottish Council for Voluntary Organisations (SCVO), particularly those that highlight the invaluable contribution that charities and voluntary organisations make in Lothian.

“The voluntary sector has been crucial throughout this pandemic, both in the local area and nationwide, and it’s important that we not just recognise that incredible contribution, but also explore how the Scottish Parliament can work better with the sector to maximise these efforts.”

Charities missing out on over £940 million a year as a result of donors failing to claim tax relief

Generous donors are forgetting to claim personal tax relief which could boost charity funds

Hard-pressed charities could be missing out on more than £940 million a year, as generous donors fail to claim tax relief on the money they give, new research from Handelsbanken Wealth Management & Asset Management shows.

Charity Commission data shows 60% of organisations have suffered a drop in income during the pandemic.

Handelsbanken Wealth Management & Asset Management’s nationwide study found 60% of charity supporters are not claiming tax relief on donations distinct from money given directly through their salary. Their donations are estimated to be worth around £4,7 billion and with 20% tax relief would yield more than £940 million for charities.

Just 9.5 million people are claiming tax relief on donations, with 29% doing so through Gift Aid on their self-assessment tax form, while 10% do so by asking HMRC to amend their tax code and 2% use a financial planner.

Handelsbanken Wealth Management & Asset Management research highlights the importance of getting advice on making charitable giving more tax efficient – for both good causes and donors themselves. Just 59% of adults are aware they can claim personal tax relief on any charitable donations they make.

Its study shows people willing to be very generous in their backing of good causes – 22% are definitely planning on leaving money to good causes in their will, with an average donation of more than £2,200 planned adding up to a potential pay-out for charities of £26.5 billion.

Across the country, more than two out of three adults (68%) donate to charities every year – the equivalent of around 35.9 million people. The average donation is £499, equating to a total of £17.9 billion donated every year overall – or £563.62 every minute. Young people (18-34) donate more than twice the average (£1,056) while older people (55+) donate a quarter of that (£250). Londoners donate an average of £1,546 per year – more than three times the UK average.

But Handelsbanken Wealth Management & Asset Management’s research shows knowledge of tax rules on donations to charity could be better – for instance, someone leaving 10% of their estate to charity would see the Inheritance Tax on the value of estates above the IHT threshold reduced from 40% to 36%.

However, less than one in five (18%) are aware of the rule even though 23% said they would consider doing so. The number of people aware of the rule only rises slightly among those with an estate worth more than £325,000 (22%).

The average value of an estate worth more than the IHT nil-rate band (£325,000) is £619,726. However, as things stand, only 12% of those with an estate worth more than £325,000 are currently planning on donating 10% or more to charity – some 422,000 people. These individuals could be set to save a total of £22,582 on their IHT bill by reducing their taxable rate – a total of £77.5 billion across the UK.

Mark Collins, Head of Tax at Handelsbanken Wealth Management & Asset Management said: “In common with many other sectors, charities have suffered during the pandemic, with fundraising badly affected and the Charity Commission estimating 60% of organisations have seen incomes suffer.

“Charity donors will want to see the organisations they support receiving the full benefit of donations, which should include claiming the tax relief whether it is through Gift Aid, or consulting a financial planner.

“Wealth advisers can guide people through how to maximise their donations, so they are effective for charities and their own IHT planning. Giving as much as 10% of your estate to charity can reduce IHT rates from 40% to 36% which would be very much welcomed by charities and potentially better reflect people’s wishes.”

The table below shows the numbers of people who fail to claim tax relief on charitable donations they make across the country with 73% of people in the North West and 72% in Yorkshire & The Humber not claiming.

Londoners are the best at claiming tax relief, but 31% are still not doing so.

REGIONHOW MANY DON’T CLAIM TAX RELIEF ON CHARITABLE DONATIONS THEY MAKE
North West73%
Yorkshire & The Humber72%
East of England68%
East Midlands67%
Wales65%
Scotland64%
North East63%
South East63%
South West61%
West Midlands55%
Northern Ireland51%
London31%
UK60%

From Bad to Worse: Universal Credit families face another income cut

UP TO £660 PER YEAR COULD BE SLASHED FROM HOUSEHOLD INCOME

In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With Universal Credit set to rise by just 3.1 per cent in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.

This is an increase on Child Poverty Action Group’s original analysis which showed a cut of £570, when inflation was expected to be 7.25 per cent.

The £20 cut to universal credit last October plunged out-of-work benefits to their lowest level in 30 years. Latest analysis shows that the picture for families is going from bad to worse.

Without government action, families will be pulled deeper into poverty. Increasing benefits by anything less than 8 per cent risks pushing those with already stretched budgets past breaking point.

Anti-poverty charities wrote to the Chancellor last week calling for a minimum 7% benefits rise:

Prices are rising at the fastest rate in 30 years, and energy bills alone are going to rise by 54% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low-income families, whose budgets are already at breaking point, most.

There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap, the benefit freeze and deductions have left many struggling.

And although benefits will increase by 3.1% in April, inflation is projected to be 7.25% by then. This means a real-terms income cut just six months after the £20 per week cut to universal credit. 

Child Poverty Action Group’s analysis shows families’ universal credit will fall in value by £570 per year, on average. The Joseph Rowntree Foundation has calculated that 400,000 people could be pulled into poverty by this real-terms cut to benefits.

The government must respond to the scale of the challenge. Prices are rising across the board. Families with children in poverty will face £35 per month in extra energy costs through spring and summer, even after the government’s council tax rebate scheme is factored in. These families also face £26 per month in additional food costs. The pressure isn’t going to ease: energy costs will rise again in October. 

A second cut to benefits in six months is unthinkable. The government should increase benefits by at least 7% in April to match inflation, and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.

Much more is needed for levels of support to reflect what people need to get by, but we urge the government to use the spring statement on 23 March to stop this large gap widening even further. The people we support and represent are struggling, and budgets can’t stretch anymore.

Alison Garnham, Chief Executive, Child Poverty Action Group

Emma Revie, Chief Executive, The Trussell Trust

Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation

Morgan Wild, Head of Policy, Citizens Advice

Dan Paskins, Director of UK Impact, Save the Children UK

Imran Hussain, Director of Policy and Campaigns, Action for Children

Thomas Lawson, Chief Executive, Turn2us

Sophie Corlett, Director of External Relations, Mind

Dr Dhananjayan Sriskandarajah, Chief Executive, Oxfam GB

Caroline Abrahams, Charity Director, Age UK

Eve Byrne, Director of Advocacy, Macmillan Cancer Support

Kamran Mallick, CEO, Disability Rights UK

Katherine Hill, Strategic Project Manager, 4in10 London’s Child Poverty Network

Mubin Haq, Chief Executive Officer, abrdn Financial Fairness Trust 

Bob Stronge, Chief Executive, Advice NI 

Dr Ruth Allen, Chief Executive, British Association of Social Workers

Joseph Howes, Chief Executive Officer, Buttle UK

Helen Walker, Chief Executive, Carers UK 

Balbir Chatrik, Director of Policy and Communications, Centrepoint

Gavin Smart, Chief Executive, Chartered Institute of Housing 

Leigh Elliott, CEO, Children North East

Niall Cooper, Director, Church Action on Poverty

Lynsey Sweeney, Managing Director, Communities that Work

Anna Feuchtwang, Chair, End Child Poverty Coalition

Claire Donovan, Head of Policy, Research and Campaigns, End Furniture Poverty

Victoria Benson, CEO, Gingerbread 

Neil Parkinson, co-head of casework, Glass Door Homeless Charity

Graham Whitham, Chief Executive, Greater Manchester Poverty Action

Yasmine Ahmed, UK Director, Human Rights Watch 

Sabine Goodwin, Coordinator, Independent Food Aid Network 

Jess McQuail, Director, Just Fair 

Gemma Hope, Director of Policy, Leonard Cheshire

Paul Streets, Chief Executive, Lloyds Bank Foundation for England & Wales

Jackie O’Sullivan, Director of Communication, Advocacy and Activism, Mencap

Mark Rowland, Chief Executive, Mental Health Foundation

Chris James, Director of External Affairs, Motor Neurone Disease Association

Nick Moberly, CEO, MS Society

Anna Feuchtwang, Chief Executive, National Children’s Bureau

Charlotte Augst, Chief Executive, National Voices

Jane Streather, Chair, North East Child Poverty Commission

Tracy Harrison, Chief Executive, Northern Housing Consortium

Karen Sweeney, Director of the Women’s Support Network, on behalf of the Women’s Regional Consortium, Northern Ireland 

Satwat Rehman, CEO, One Parent Families Scotland

Mark Winstanley, Chief Executive, Rethink Mental Illness

James Taylor, Executive Director of Strategy, Impact and Social Change, Scope

Irene Audain MBE, Chief Executive Scottish, Out of School Care Network

Steve Douglas CBE, CEO, St Mungo’s 

Richard Lane, Director of External Affairs, StepChange Debt Charity

Robert Palmer, Executive Director, Tax Justice 

Claire Burns, Director, The Centre for Excellence for Children’s Care and Protection (CELCIS)

The Disability Benefits Consortium 

Dr. Nick Owen MBE, CEO, The Mighty Creatives

Peter Kelly, Director, The Poverty Alliance

Elaine Downie, Co-ordinator, The Poverty Truth Community

Tim Morfin, Founder and Chief Executive, Transforming Lives for Good (TLG)

UCL Institute of Health Equity 

Dr Mary-Ann Stephenson, Director, Women’s Budget Group 

Natasha Finlayson OBE, Chief Executive, Working Chance

Claire Reindorp, CEO, Young Women’s Trust 

Businesses in Scotland are also calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Bank of Scotland.  

As inflation hits the highest levels seen since 1992, over half (55%) of Scottish businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by two-fifths (40%), while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills. 

Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and over one in ten (14%) stated that inflation is reducing profitability. Almost one in ten (9%) said rising prices had caused them to worry about having to make staff redundant and a further one in ten (9%) were concerned about not being able to pay their bills. 

To help specifically with rising prices Scottish businesses are asking the Chancellor for a VAT reduction (46%), while a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures. 

The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said:“Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.  

“As we wait for the Chancellor’s Spring Statement, we’ll continue to remain by the side of business in Scotland and support the country’s ongoing economic recovery from the pandemic.” 

Responding to the ONS public sector finances statistics for February  Chancellor of the Exchequer, Rishi Sunak said: “The ongoing uncertainty caused by global shocks means it’s more important than ever to take a responsible approach to the public finances.  

 “With inflation and interest rates still on the rise, it’s crucial that we don’t allow debt to spiral and burden future generations with further debt.”

 “Look at our record, we have supported people – and our fiscal rules mean we have helped households while also investing in the economy for the longer term.”

All will be revealed when the Chancellor delivers his Spring Statement (Budget) at Westminster tomorrow.