Rachel Gomez, Senior Economist at Pro Bono Economics, said:

“Inflation has dipped to 10.1% in the 12 months to March, down from 10.4% in February. These historically high levels, driven by rising energy, food and non-alcoholic drink prices, are squeezing the budgets of the most vulnerable households and leaving many facing significant financial challenges.

“The inflationary squeeze on households is translating into increased demand for charity support - with eight in 10 (79%) charities across the UK reporting rising demand. As charities strain to meet this need, their costs are rising. Alarmingly, nearly three-quarters (73%) of organisations say their finances are deteriorating due to rising costs and more than half (51%) are having to use reserves to meet operating costs.

“In this challenging environment, charitable foundations and other major funders must do all they can to ensure the social sector has the resources it needs to support communities through this period.”