Debt advice charity faces funding issues

The charity revealed the £63,520 loss in its annual report, in line with its budget. In 2021 it made a small profit of just less than £6,000.

The financial position was unveiled at a time when the charity said that demand for its services was ‘more critical than ever’.

The charity handled more than 11,000 queries from just less than 4,000 clients on matters such as the cost of living, rising interest rates and affordable housing.

Costs increased in various ways, including office expenses, which increased by 51% compared with 2021, premises costs, which rose by 12%, salary and States social security costs, which went up by 26%, and a 70% increase in staff and volunteer expenses.

The charity also had to contend with the closure of the Friends of Citizens Advice shop on the Bridge in September after more than 15 years, due to the planned redevelopment of Leale’s Yard.

A new shop opened in Mont Arrive in St Peter Port in October, and the charity’s management committee was optimistic that it would contribute funds to support CAG’s operations.

‘The first couple of months of trading were very promising, with the income from sales more than covering the cost of the lease and part-time manager and other overheads,’ interim chief executive Annie Ashmead said.

Challenging financial times are set to continue for the charity, with it forecasted to make a pre-tax loss each year for the next three years.

‘Since last year, our forecasts have indicated that CAG will bear repeated year-on-year deficits but, when funding for charities is limited, we have faced resistance from grant-givers to provide additional financial support whilst we held significant reserves. Now those reserves are rapidly eroding,’ treasurer Maggie Thompson said.

She added that the management committee was pursuing actively funding opportunities from the public and private sectors.