Jamie O’Halloran, Economist at PBE, said:

“Inflation has dipped marginally from its 40-year high last month and now stands at 9.9% having reached double digits in July. The cost of fuel at the pump has come down but as food prices continue to rise and earnings fail to keep pace, millions are being driven deeper into a cost of living crisis.

“The government’s recent intervention on energy bills may help to dampen down inflation as we head into 2023, but charities are still highly likely to see a wave of increased demand from families struggling to pay their bills.

“On top of this spike in demand, the charity sector’s finances are being tightly squeezed by inflation. We project that the £5.7 billion of total donations made to charities in the first six months of 2022 will be worth £500 million less by the end of the year. Meanwhile, a monthly £20 direct debit donation started in 2017 will be worth just £14.90 by 2024.

“While the full details of the government’s energy support package remain to be seen, it will only be fit for purpose if it ensures charities can continue doing their vital job of supporting people, improving lives and building communities."

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