Redundancy costs almost doubled at Oxfam, accounts show

The annual report for the year to 31 March 2017 show that they were £2.6m, compared with £1.4m in the previous financial year

Oxfam headquarters
Oxfam headquarters

Redundancy costs at Oxfam almost doubled to £2.6m last year, the charity’s latest accounts show.

In its accounts for the year to 31 March 2017, Oxfam’s redundancy costs were £2.6m, compared with £1.4m in the previous year.

A statement from Oxfam said that the charity changed its international structure "to simplify our processes within countries, increase our impact and ultimately to become more cost-effective".

The statement said that this led to the closure of Oxfam GB’s regional centres and a reduction of its staff in other countries, which led to the redundancy of 113 staff worldwide and 13 based in the UK.

"These are one-off costs and will save money in the long term," the statement said.

The accounts show that the charity’s income was £408.6m for the year, compared with the previous year’s all-time high of £414.7m.

Fundraising income fell by £4.7m to £299.9m, which the report says was due to a reduction in restricted income from the UK government.

But there was a 22 per cent increase in sales from the charity’s online shop, with its retail activities having a net income to the charity of £20m, the accounts show.

The charity spent £303.5m on charitable activities and £402.6m overall, compared with £322m spent on charitable activities from a total spend of £420.7m in the previous year.

The charity’s pension deficit is £27.3m, the report says, and the charity’s defined-benefit pension scheme was closed to new members in 2002/03.

The highest earner at the charity was Mark Goldring, its chief executive, who was paid £127,753 for the year.

Fraud losses at the charity, which are included in the annual report, amounted to £496,000, a reduction of £41,000 on the previous year. The charity recovered £34,000 of the amount lost to fraud, the accounts show.

The chair Karen Brown and Goldring say in their introduction to the report that the charity is also working to increase its revenue from shops and work with the private sector to alleviate poverty.

They say: "In the year ahead, and with your help, we want to work more forcefully – and in partnership with the private sector – to shape businesses and private investment so that they can better benefit people in poverty.

"We are also planning a major investment in our shops, so that we are better placed to take advantage of our ever-changing high streets and shopping patterns."

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