Funding woes worsen leading to closure
Redundancy notices have been served on all staff at an Edinburgh charity after it failed to source new funding.
People Know How, which helps a range of people overcome barriers and improve wellbeing, has issued its entire workforce with redundancy letters after it failed to secure funding for future projects as well as current service provision.
The organisation had undertaken a 30-day collective consultation process to assess its future and options to avoid redundancies, including pausing all new activities to prioritise the support of those using its services.
That consultation process has now come to an end resulting in the charity saying its only option is to lay off all its staff and close for good.
Bosses said that in the last few months, they have seen devastating funding cuts across the sector and a drastic shift in the funding landscape. As a result, fewer options were available for long-term funding, with other funders closing entirely - leaving those that remain severely over-subscribed.
It comes as the Scottish Government is examining their approach to funding in the third sector, responding to calls from the sector for longer-term funding, unrestricted core funding and funding to accommodate paying staff a Real Living Wage.
One of its projects connected people of all ages digitally, helping to ensurer social inclusion.
Another of its programmes was a canal boat run in collaboration with Polwarth Parish Church. The boat hosts unique trips on Edinburgh’s Union Canal for community groups and organisations to improve wellbeing, socialise and discover new experiences.
The charity warned: “As the debate continues, charities like People Know How are dealing with the reality. While charities continue to close, the cost of living crisis continues, the number of children absent from schools is at crisis level and support for digital exclusion is needed more than ever.”
Last financial results showed the organisations had an expenditure of £874,000 on an income of £776,000.
“The decline of available funds is directly at odds with the increasing need of the communities we support,” the charity said.
“Over the last few months, we have seen attendance to our digital groups and calls on our Digital Support Helpline increase. We also recently partnered with BT to provide information about the digital landline switchover, with many groups across the country eagerly coming forward to work with us on this project.
“And just two months ago, we began our Positive Transitions support in schools for the new academic year, addressing a very real need for support felt by the children, young people and families moving to secondary school.
“While we have funding for some projects, we will not hear back from our biggest funders until the end of this financial year and cannot move forward without the certainty that we will be able to support our service users and employ our staff beyond Christmas.”
It added: “Consideration is being made on how we close in the best way possible to value all the work and achievements since 2013.
“We are proud of what we have achieved over the last 11 years, supporting communities to improve wellbeing across Scotland.”
