Statement on CAP’s funding challenges

Covid and the cost of living crisis made 2022 an exceptionally challenging year for CAP, along with many other charities. During a year when fundraising and donation levels struggled, CAP faced significant demand on our services and finances, with calls to our free debt helpline and requests for emergency food and energy support rising substantially.

In response, CAP’s senior leadership and trustees have undertaken a review of the income and fundraising landscape that the organisation faces over the next few years. CAP is releasing this statement to highlight the challenging environment that the charity sector is currently facing, and to stress its commitment to providing vital assistance for those who need our support, through practical help and advice, as well as campaigning to end UK poverty.

CAP UK Chief Executive, Paula Stringer, says: ​‘Seeing the increasing financial struggles people are facing is deeply upsetting and we are determined that CAP will provide as much support as we possibly can in 2023. The insights we have gained in our financial review require tough decisions and changes to our central staff teams and service configuration. Some of these were already planned and we are simply bringing them forward, others are additional. While these are clearly difficult decisions I, along with our senior leadership and board of trustees, am confident that making these changes now will ensure the longer term stability of CAP and our ability to serve our clients in the future.

‘As a first step, we are pausing our internal events programme and bringing forward changes within other head office teams which will see a limited number of immediate job reductions and cost savings. Along with this we are offering voluntary redundancy options more widely across our head office staff team, after which we will make a further assessment of the situation. I know that it will be a difficult time ahead for our staff who are incredibly dedicated, but I am thankful that we already have a range of elements in place to support them.

‘The wellbeing of each and every one of our clients is our most pressing priority and we are doing the maximum we can to protect our services to them. Going forward, CAP is already implementing new automated systems, such as our benefits calculator which is already online, and a new fast-track money coaching programme which will benefit future clients.

‘Finally, we will be working hand-in-hand with our local church partners who deliver our frontline services, to make sure they experience as little impact as possible, as I know that helping people through the cost of living crisis will be a busy time for all of us.

‘My hopes and prayers are that the cost of living crisis will be shorter than anyone is currently predicting. But with experts suggesting the situation will get worse for many, it is vital that CAP is able to continue to provide essential services to those who need them most, even if it requires difficult decisions to see us through this crisis period our country faces.’

28 February 2023

Following a review of our staffing and funding situation, we can confirm that CAP will be making fifty head office redundancies over the course of this spring. 

Working with our head office teams and other stakeholders, we are already in a position where we know that half of these will be through people taking voluntary redundancy. We are now starting consultation with the remaining twenty-six staff who are at risk. 

CAP’s Chief Executive, Paula Stringer, says: ​“We have worked extremely hard to mitigate the overall impact of redundancies on our activities, with most coming through a natural reduction in demand on our central support functions. 

“Our key priority has been to protect our front-facing debt advice roles, where there will be no compulsory redundancies. A maximum of eight roles will go via voluntary redundancy among 110 head office advisor posts.

“We continue to work hand in hand with our local church partners, who provide face to face support for clients in their homes, so that they will experience as little impact as possible. Staff at our frontline debt centres themselves are unaffected by redundancies as they are either volunteers, or employed by their local church. 

“In doing the review, working closely with our staff and church partners, and taking these actions, CAP is ensuring our longer term stability, and our ability to serve our clients well, both now and in the future.

“We know that it has been a difficult time for our staff and have been committed to their wellbeing, with a range of elements in place to support them. We are grateful for their continued dedication to serving our clients, despite the challenges. And for those who will be leaving us to take up new roles, or who have seen this as an opportunity to retire early, we send all our blessings and good wishes with them.”