Organisation looks to plug £6m income hole

Save the Children UK is to put 197 jobs at risk in a reorganisation aimed at increasing its impact in the UK and around the world and strengthening its financial position.

Staff were told today that £6 million would be saved on an annual wage bill of £44m in a refocus for impact that will see more emphasis on UK work and a sharper international focus on protecting children in crisis, improving health and education prospects, and addressing the consequences of climate change and inequality.

Moazzam Malik, chief executive, said more money would be moved closer to families, communities and local partners.

“Children in the UK and around the world have escalating needs arising from poverty, conflict and climate change,” he said.

“This reorganisation will lead to a sharper focus on those needs; and shift scarce resources from HQ activities to address challenges on the ground.”

In common with other charities, the group has also seen its costs rise faster than its income, with spending on staff up by £7m over four years of inflationary pressures.

Discussions on the ‘Refocus for Impact’ plan began in 2024, well before this month’s announcement of a freeze in USAid, which has prompted warnings of job losses at Save the Children in America and Save the Children International.

Save the Children UK’s latest annual report showed that income was stable in 2023 at £296m. It spent £295m, mainly on emergencies (£79m), education (£67m) and health (£37m), with tens of millions more on family livelihoods, nutrition and child protection. Income for 2024 is expected to be marginally up on 2023.

Staff across much of the organisation will now be consulted on the changes proposed. 

Voluntary redundancy will be offered to reduce the number of compulsory redundancies.

In recent months, major sector employers Stonewall, the Scottish Council for Voluntary Organisations, the RSPB and the RNIB have all indicated they could shed jobs as income is not meeting spiralling costs.