News New report shows how blended finance helped charities tackle the cost of living crisis
A new report from Charity Bank has found that £2.5 million of blended finance helped charities and social enterprises support people facing financial hardship while strengthening their own resilience during the cost of living crisis.
Delivered in partnership with Access – The Foundation for Social Investment, the Cost of Living Fund combined £1.33 million in grant funding and £1.17 million in affordable loan finance to help organisations respond to rising demand at a time of growing financial pressure. The Fund supported 26 organisations across England, with 88% of funding going to organisations serving the 30% most disadvantaged communities in the country, helping ensure support reached areas most affected by financial hardship.
The Fund was designed to help organisations respond to urgent community needs while building longer term organisational resilience.
Key findings
The findings show that a flexible blended finance model can help charities and social enterprises respond to immediate community needs while strengthening their own resilience. Every organisation responding to the survey reported a positive impact on people facing cost of living pressures, and nearly two thirds reported improvements in their financial resilience. Organisations consistently highlighted the flexibility of the funding as a key factor, enabling them to adapt services to local needs while investing in long term sustainability.
The report includes case studies from organisations funded through the programme. Refugee Education UK expanded support for displaced children and young people, including study spaces, mentoring and wellbeing services. Framework Housing Association helped more than 1,000 people access devices, connectivity and digital skills support. Support When It Matters (SWIM) expanded support for people experiencing homelessness or housing insecurity, while the Neuro Wellbeing Centre maintained access to vital services for people living with neurological conditions.
Five lessons for funders and policymakers
Beyond the immediate impact, the report identifies five important lessons for funders, investors and policymakers considering how best to support communities facing economic hardship.
- Stabilisation is a meaningful outcome. Preventing decline can be just as important as achieving growth during periods of economic uncertainty.
- Capacity drives impact. Investment in staff and organisational infrastructure helped charities increase their reach and effectiveness.
- Agility enables effectiveness. Flexible funding allowed organisations to respond quickly to changing local needs.
- A 50:50 grant and loan mix drives confident service delivery. The blend of grant and repayable loan finance gave organisations confidence to launch and expand services.
- Short term support can enable long term resilience. Financial breathing room helped organisations develop income streams, secure additional funding and invest in future sustainability.
Ed Siegel, CEO, Charity Bank, said: “The findings demonstrate that charities and social enterprises can achieve more when funding is designed around the realities they face. By combining grants with affordable lending, organisations were able not only to meet urgent community needs, but also strengthen their financial resilience and sustainability. At a time when many communities continue to feel the effects of the cost of living crisis, this report provides encouraging evidence that blended finance can help deliver both immediate impact and long-term outcomes.”
Neil Berry, Interim CEO, Access, said:
“Charities and social enterprises were under enormous pressure during the cost of living crisis. We wanted to give organisations the flexibility and financial support to respond to the needs of their communities, while also strengthening their own resilience. The findings from this fund show the value of that approach, and we’re grateful to Charity Bank for working with us to make it possible.”
Read the full report
The Cost of Living Fund Report explores the programme’s impact in detail and includes case studies from participating organisations.
About Charity Bank
Charity Bank is the loans and savings bank owned by and committed to supporting the social sector. Since 2002, we have used our savers’ money to make more than 1480 loans totalling over £653m to housing, education, social care, community and other social purpose organisations.
Nothing in this article constitutes an invitation to engage in investment activity nor is it advice or a recommendation and professional advice should be taken before any course of action is pursued.
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