Citizens Advice losses rise to more than £90,000
Falling income and rising costs due to inflationary pressures are two of the reasons behind Citizens Advice Guernsey reporting more than £90,000 of losses last year.
The charity revealed the ‘disappointing’ figure in its annual report. It follows one of £63,520 in 2022.
The financial position was revealed at a time of self-acknowledged transition for the charity, which said it was focusing on making itself ‘fit for the future’ regarding fundraising, technology and restructuring.
Along with reduced income, the charity experienced inflation-induced cost rises in a number of areas, including an 18% rise in office expenses due to increased costs of cyber insurance and IT software licences, a 14% rise in salary and States insurance costs due to changes in senior management structure and personnel, and more than £6,400 in other costs due to increased membership fees of Citizens Advice UK and the cost of professional services.
A 10% reduction in opening hours due to the availability of volunteers contributed to a fall in the number of client contacts, with 3,444 seen last year compared to 3,836 in 2022.
A total of 10,849 client enquiries were dealt with – down from 11,140 in 2022 – with the largest enquiry area that of housing with 2,279, followed by law and rights with 2,046 and work with 1,509.
Some 60% of all clients were given advice over the telephone – an 11% decrease on the previous year – while 46 accessed the charity’s money advice service, 21 fewer than in 2022.
In more positive news, a one-off additional grant of £10,000 to the charity was approved by Employment & Social Security last year, and this year’s annual grant has been increased to £100,000.
Additionally, the new Friends of Citizens Advice Guernsey
LBG charity was officially incorporated at the beginning of February 2023, with the charity saying that it had enjoyed a ‘fantastic’ first year of trading from its new base at Mont Arrive.
Clients contacting the charity continued to be satisfied with the advice given to them, with 95% judging their overall experience of the service to be positive.
However, challenging financial times are set to continue, with the charity expected to make a near-£18,000 loss this year, followed by predicted losses of over £118,000 in 2025 and over £140,000 in 2026.
Treasurer Maggie Thompson said that, despite the ongoing challenge the charity faced in generating sustainable funding to cover its operating costs, it was confident that Guernsey would support it and enable it to continue to offer quality service.
‘I thank the staff and volunteers at Citizens Advice for their hard work, commitment, and support of our mission,’ she added.
