Jamie O’Halloran, Economist at PBE, said:

“This further alarming spike in inflation will exacerbate concerns among the nation’s charities, as the most vulnerable have nowhere else to turn while the government prevaricates. Many foodbanks, babybanks and organisations providing grants to struggling families are already running at full tilt to support people with essentials. But numerous children’s and mental health charities are braced for a tidal wave of demand still to come as increasing poverty and debt drags down mental health. 

“Last month, surveys showed that leaders of nine in 10 (86%) charities are worried about the impact that rising living costs are having on people who rely on their services. Meanwhile, charities themselves are having to deal with rising costs and the risk of a ‘cost of giving’ crisis as people have less money available to donate. We estimate that charities would need to find an additional £3.3bn in 2024 to meet salary costs alone if wages in the sector were to keep up with inflation.” 

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