Barnardo’s is expecting its income to fall by £50m in the current financial year because of the coronavirus pandemic.
Speaking to Third Sector, Javed Khan, chief executive of the charity, said that “even now, with some of our shops beginning to reopen, we are still facing a £50m drop in income this financial year”.
He said the children’s charity’s monthly income was “slashed by £8m overnight” because of the government-enforced closure of shops and cancellation of fundraising events.
The charity’s income has been about £300m in recent years, so a fall of £50m would equate to about a sixth of typical annual incoming funds.
“The coronavirus pandemic has hit charities hard,” said Khan.
“Many of our challenges will continue into the next few years with the predicted worsening of the economic downturn and as demand for our services skyrockets.”
When asked if the charity was anticipating having to make any redundancies, a spokesman said Barnardo’s was “hoping the furlough scheme will protect jobs in the longer term”.
Khan said that about 2,300 of its 8,000-strong workforce would remain on furlough “in order to protect jobs in the long term, though some are now returning as our shops reopen”.
Khan has previously told Third Sector that the charity would top up the wages of furloughed staff so they would continue to receive 100 per cent of their salaries.
But it is understood that, after making a financial analysis, the charity has told staff that it will not be able to continue that commitment after 1 July.
Barnardo’s is among a number of charities reporting significant falls in income as a result of Covid-19, with three major charity umbrella bodies predicting a fall in income of £12.bn for the sector this year.
Throughout the crisis, Khan has urged the government to better help charities, including prioritising Gift Aid payments and automatically derring PAYE and national insurance.