A shocking new report reveals that 4.3 million people in the UK have sought financial support from charities in the past three years. The study, Financial Resilience and the Role of Small Charities, was published by Lloyds Banking Group and its charitable Foundations to mark their 40th anniversary of supporting communities .
The findings highlight the growing reliance on charities as families struggle with rising living costs, debt, and unemployment. Charities have become the second most trusted source of financial advice, just behind family,with 90% of people saying they were satisfied with the help they received.
Why Are So Many People Seeking Help?
The report shows that:
- 72% of those who turned to charities were worried about paying for essentials like food and energy bills.
- 48% needed help with debt problems.
- 51% said shame and embarrassment stopped them from asking for help sooner
Many people try other sources first, including family (59%), charities (50%), and friends (39%). But charities play a unique role, they not only provide emergency support but also help people build long-term financial skills.
Challenges Charities Face
Despite their impact, charities are struggling to meet demand:
- 95% say they need more funding to help more people.
- Over half don’t have enough staff or volunteers.
- 26% lack the skills or systems to handle rising requests.
To tackle this, Lloyds Banking Group has launched a £4.2 million Financial Resilience Fund. This will provide grants and expert mentoring to charities over the next 2-3 years
What Does This Mean for Donors?
With more people relying on charities, public support is crucial. The report proves that small charities change lives, 35% of those who sought help now feel more financially stable, compared to 29% who didn’t use charity services
If you can, consider:
- Donating to local charities helping with food, debt, or housing.
- Volunteering your time or skills.
- Supporting campaigns that push for better funding for charities.
The cost-of-living crisis is far from over, and charities are a lifeline for millions. As Matt Hyde, Chief Executive of Lloyds Bank Foundation, says:
“Small charities are doing incredible work… We hope this research encourages more partnership working to help local communities.”
For more details, read the full report: Financial Resilience and the Role of Small Charities.
Source: Charity Today
