Government Urged To Act On Charity Banking Cash Crisis, UK

Main Category: Aid / Disasters
Also Included In: Public Health
Article Date: 10 Oct 2008 - 8:00 PDT

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The government can't ignore the credit crunch crisis that is engulfing Britain's charities, Unite, the country's biggest union, warned today (10 October).

Unite, which has 60,000 members in the not-for-profit sector, is writing to the new minister for the Third Sector, Kevin Brennan calling for concerted government action to help voluntary sector organisations which may have directly lost money in the Icelandic banking debacle or as a result of the investments of its funders.

Rachael Maskell, Unite's National Officer, Community and Non Profit Sector said: 'We are experiencing the most turbulent economic times since the Great Depression of the 1930s - and it is precisely during this period that people are turning to the Third Sector for assistance on a wide range of pressing social and economic problems.'

'Government cannot ignore this sector , especially as organisations are being doubly hit with people giving charities less, and as local authorities - also hit by the banking crisis in Iceland - will be planning cut backs in funding for the voluntary sector.'

'It is the smaller charities that will be hardest hit, and we already have reports many small organisations like a youth justice charity in the North West cutting two of its five staff - a 40% drop. The Citizens Advice Bureau has had a tremendous leap in calls from distressed clients.'

'The government needs to calm nerves, create sensible proposals to halt any knee-jerk panic reaction of voluntary sector managements to shed staff and put unrealistic pressure on those that remain. It is not the time to turn employees into volunteers. We want to work with the unions, employers and government to chart a way thorough the current troubles besetting charities.'

Unite represents over 60,000 members in the Third Sector.

Unite press releases on the Non Profit Sector can be seen on website: http://www.unitetheunion.com/nonprofit

Unite was formed by an amalgamation of Amicus and the Transport and General Workers' Union in May 2007.

Unite The Union