Charity leaders are warning of mounting pressures on demand for their services and rising bills across the sector caused by a further worsening in the cost of living crisis.

The warning has been delivered as latest figures this week show that inflation is now at 9.4%, the highest rate in 40 years.

The cost-of-living crisis is already “fuelling spiralling demand for charities’ services”, which is being “exacerbated by challenges recruiting and retaining staff”, warns Pro Bono Economics economist Jamie O’Halloran.

“While the government's attention is focused on the battle to be the next PM, charities, and the people they support face little respite from the mounting pressure.

“The next government should be prepared to work closely with the sector to weather the cost-of-living crisis for as long as it lasts.”

Meanwhile, Alison Taylor, chief executive of Charities Aid Foundation’s Bank and Charity Services, says most charity leaders are “concerned about how they are going to pay for their ow utility bills, with rent, energy and fuel increasing”.

She warns that inflation is set to increase further this autumn.

“In the charity sector, the impact of this is evident in the increasing number of people turning to services for support - from food banks, mental health and disability support to organisations offering financial guidance,” she said.

“For many charities however, their resources are stretched after two years supporting their communities throughout the pandemic, and they are also having to find the funds to pay higher costs.”

Taylor calls on the government and private sector to support charities through the current cost of living crisis, as they did during the Covid pandemic.

She added: “We urge the Government to look at this issue in detail to understand the multitude of ways in which charities are impacted and consider measures which could help.”

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