Sector 'faces higher rate of inflation'

The third sector faces an underlying rate of inflation at least two percentage points higher than the base rate, according to a measure run by one charity.

Charles Nall, corporate resources director of the Children's Society, said that the organisation regularly monitored a basket of goods appropriate to charities. The method had measured inflation in the charity sector at about 6.5 per cent over the past year, he said.

"Part of the reason charities face inflation higher than the base rate is wage expectations," he said. "Charities often have long incremental scales similar to those in the public sector.

"Overall, I'd expect to see a drop in charity inflation over the next year. The level of that drop will largely depend on wages."

Charities were hit especially hard by high fuel costs over the past year, and the recent fall in prices would help bring costs down, added Nall.

He said his charity had tried to counter the effect of above-inflation rises by finding cost savings.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert Hub

Insurance advice from Markel

Cyber and data security - how prepared is your charity?

With a 35 per cent rise in instances of data breaches in Q2 and Q3 last year, charities must take cyber security seriously

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now