Youth clubs are spending as much as half their budgets on covering energy and water bills, a new report has found.

The warning has come from a number of organisations, including Scouts, youth workers and charities at the start of so-called ‘awful April’ with prices of energy, water and more all set to rise.

The report from finance charity Social Investment Business (SIB) shows that youth centres could be at risk of closure from the combined impacts of rising costs and new government policies on energy efficiency, the report warns.

Margate Sea Cadets are one organisation which has had to allocate 49% of their budget just to cover utility bills like energy and water. The group has served local youth for more than 100 years. They provide activities for young people aged 9-18 including rowing, sailing, adventure activities and parades.

Paul Holton, volunteer and chair of Margate Sea Cadets, said: "When we're raising funds, we're constantly aware that half of that money is going to just pay for the bills. It's very demoralising, we're thinking about that constantly.

“Local youth provision here is under risk from rising bills and funding cuts. Without these groups the social problems that would come out would cost much more than if we get support now.”

Charities vulnerable to rising costs

Households, businesses, and charities are all facing rising utility bills, with this month being dubbed ‘awful April’ as costs of energy, water, internet and more continue to increase.

Unlike households, charities are not covered by a price cap to shelter them from the extremes of price rises, and short-term government schemes set up at the height of the energy crisis have now ended.

The report found that on average small youth charities in England are now spending 13% of their outgoings on utilities, with many having to spend well above this average, as much as 50%. For comparison, the average household spent 7.9% of their weekly spending on utilities at the height of the energy crisis in 22/23, according to the ONS3.

SIB’s report calls for urgent government action to address these rising costs for youth and other community groups, proposing a 0% VAT rate for charity energy bills, and arguing for the additional levies currently added to electricity bills to instead be raised through taxes on the wealthiest – which would then reduce energy bills for everyone.

Draughty buildings drive up bills

Combined with rising costs, the research found that youth centres and community buildings are often poorly insulated. Draughty buildings are driving up their bills even further, but groups lack the resource needed to improve their insulation.

Without action, these youth clubs and community groups could now be at risk of losing access to their buildings and seeing their services close. Due to new government plans being consulted on, groups using and renting spaces below basic energy efficiency levels could face difficulties securing funding or hefty fines.

Aidan Jones, Chief Executive of Scouts, said: “Scout groups from all over the country have told us about the pressure that rising energy bills are putting on their budgets. At the same time, parents and carers are also feeling the strain of increasing household expenses.

"Groups are doing everything they can to keep activities affordable, but with prices continuing to rise, we want to see greater support for charities and voluntary groups to ensure young people don’t miss out.

"Uniformed youth organisations like Scouts provide vital opportunities for young people to develop essential skills for life. Now more than ever, children need these safe spaces to build resilience, foster a sense of belonging, and reduce loneliness."

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