Redundancies loom at Age Scotland amid ‘significant drop’ in legacy income

Age Scotland is to undertake a "drastic cut in expenditure and work" including making "a large number of" staff redundant as part of a restructure prompted by a fall in income from wills.

The move could see as many as half of its workforce face redundancy. Latest records show it employs 95 staff.

Its chief executive Katherine Crawford and chair Stuart Purdy said that a “significant drop in income from gifts from wills” has left the charity “facing serious financial pressures”.

They warn that the slowdown in legacy income means the charity has "a fraction of the amount we would usually expect to receive".

“This is a major source of income for Age Scotland,” they said.

“Historically, it has made a reliable and significant contribution to our finances, supporting large parts of the charity and the services we deliver for older people.

“There does not appear to be any logical reason as to why this has changed so quickly and drastically over the last six months compared to previous years. But we know we are not the only charity experiencing this right now.”

The fall in legacy income comes as the charity is also tackling a drop in grant funding and rising costs and already having to draw down on its reserves for front line service delivery.

“We have reached a critical period where we lack sufficient cash to sustain our current levels of expenditure in the short and medium term,” said Crawford and Purdy.

The charity is facing a shortfall of £2m for the next financial year, they warn.

“We now have no other option but to undertake a drastic cut in expenditure and work through proposals to restructure the charity,” add Crawford and Purdy.

“This means a large number of valuable colleagues will have their roles placed at risk of redundancy. A period of consultation with staff whose roles are impacted will begin soon.”



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